Profits up and franchising anticipated at Rotala
Rotala reported a pre-tax profit of £2.7million for 2016 and reiterated its support for the introduction of bus franchising in the wake of the bus Services Bill. Excluding exceptional items, Rotala’s pre-tax profit rose to £2.5 million in 2015, with the prior year’s figure affected by a £1.7million exceptional loss, largely due to marking down fuel derivatives.
Revenue increased to £55.0million from £50.9million year-on-year, up 8 per cent, largely driven by acquisitions.
The group said it anticipates that the introduction of the Bus Services Bill will enable it to increase its market share, although it noted that the legislation will “inevitably be the cause of continuing instability in the UK bus market”.
Non-executive chairman John Gunn says: ”The group performed well in 2016 and trading for the current year has begun in line with budget. Following the three acquisitions which were made in 2016, together with the more recent announcements of new business, turnover in the current year should show further significant growth.
“The group benefits from strong banking and broking relationships which will provide the finance for future acquisitions. Rotala has grown predominantly through acquisition and we continue to be actively engaged in looking for attractive acquisition opportunities.”