Rotala releases annual report

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Rotala recently released its annual financial report for the year ended 30 November 2018.

The company saw a 19% rise in revenue to £62,400,000 and an 18% rise in profit before taxation, standing at £4,230,000. Rotala’s dividend rests at 2.70p up 8% from 2017.

Its contracted revenue was reported at £21.6m – up 16% – while its Charter Revenue was down 31% to 2015 numbers at £1.9m.

Its commercial revenue however stood at £38.9m up 25% from 2017.

Government policy changes since 2010 and the Bus Services Act have caused instability, according to Non-Exec Chairman. RICHARD SHARMAN
Government policy changes since 2010 and the Bus Services Act have caused instability, according to Non-Exec Chairman. RICHARD SHARMAN

For its key performance indicators (KPIs) the company’s gross profit margin was down 0.5% from 2017 at 20% while its profit from operations before mark to market provisions was up to £5,761,000, and its profit from operations reached £5,181,000.

John Gunn the Non-Executive Chairman said: “Government policy changes since 2010 and now the Bus Services Act are the primary causes of the demise of the stability which had subsisted in the bus industry for the generation that followed its de-nationalisation in the 1980’s.

Such change brings opportunity to youthful and dynamic businesses like Rotala and we think we are very well positioned to take full advantage of any eventualities.

We are confident therefore about the prospects of the group and excited about the possibility of expanding it considerably in the years ahead.”

The report also outlined the company’s future strategy plans, which included continuing to consolidate smaller businesses through bolt on acquisitions, to take advantage of the opportunities created through the Bus Services Act 2017 in the West Midlands and Greater Manchester area and to look into consolidating unwanted business units from larger bus operators.