Rotala profits from revised strategy

BIRMINGHAM bus and coach company Rotala has returned a positive set of annual results with profit up despite reduced turnover.

The Aston firm’s final results for the year ended November 30, reveal turnover of £51.7m (2013: £53.3m) but profit before tax up 8% to £2.26m (2013: £2.09m)
 
Net debt at year end was down 8 % to £18.4m (2013: £20m).
 
The firm’s chairman John Gunn said: “It is encouraging to see that pre-tax profits for the year, on a slightly reduced level of turnover and before exceptional items, rose by 8% compared with those of 2013.

“These results reflect our determination to pursue profitable turnover rather than turnover regardless of margin. In this outcome we met our expectations for the year and fulfilled our objective of continuing to focus on increased operating efficiency and enhanced customer service.”

The firm has shifted the focus of its activities from contracted services to commercial services.

In the last quarter of 2014 the contracted services operated on behalf of the University of the West of England were, by mutual consent, converted into commercial bus services, for example.

In Preston the firm gained some local school and college contracts and in the South West and the West Midlands the gains and losses on local authority contracts more or less balanced each other out, the chairman reports.

Revenues in contracted Services fell overall by 13% to £17.9m (2013: £20.6m).
 
Overall revenues in Commercial Services in 2014 rose by 2% to £30.6m (2013: £29.9m).
  
Revenues in charter services also grew by 14% in 2014 to £3.2m (2013: £2.8m).

Gunn added: “Our strategic aim is to improve our position, based upon our current hubs of operation, wherever we can by organic growth or, more particularly, by acquisition.
 
“With this aim in mind we, on 28 February 2015, acquired Green Triangle Buses Limited for a cash consideration of £900,000 and the repayment of its existing overdraft of £368,000.

“The acquisition will enable the company to enhance its position in the Lancashire market and give it access for the first time to the Greater Manchester area which falls under the remit of Transport for Greater Manchester.”