Coach company confident of continued growth
Coach and bus group Rotala has said it expects a strong second half, buoyed by the strength of its acquisitions.
The Tividale-based operator said it was also optimistic of growing its portfolio further, saying in its interim results statement that there is currently no shortage of suitable targets.
For the six months to May 31, the company said it had made good progress with revenues up 4.5% on the same period last year to £28.6m (H1 2016: £27.4m). Pre-tax profit rose 18% to £1.34m (H1 2016: £1.13m).
The board said it was confident the performance would ensure the business met full year expectations.
“This confidence is underpinned by the contract wins announced earlier in the year which are expected to make a much more significant contribution to revenues in the second half of the year. The prospects for the full year will continue to support the group’s progressive dividend policy,” it said.
Looking beyond the current year, the board it was confident that the Bus Services Act 2017 would provide more opportunities than challenges.
“Rotala has a proven track record of steady organic growth supplemented by sensibly priced acquisitions. The recent acquisition of (coach company) Hansons conforms to this strategy and is expected to enhance future earnings, as will the proposed imminent acquisition in the Manchester area.
“This proposed acquisition is also expected to strengthen the company’s ability to capitalise on re-franchising opportunities arising from the Bus Services Act 2017.”
It added: “There is currently no shortage of potential acquisition targets and the enhanced strength of our balance sheet and operational cash flow mean that we are well positioned to build on a strong performance in the current year.”
