Coach operator Rotala confident on growth

BIRMINGHAM-based coach operator Rotala has predicted the current year will see a return to growth following a period of consolidation for the business.

Chairman John Gunn said trading for the current year was in line with budget but was expected to grow.

“Following the three acquisitions which have been made in the last year or so, turnover in the current year should show a return to growth. This will not be at the expense of margins, which, given that the policy of the board is not to pursue low margin business for the sake of it, have shown a steady improvement over recent years,” he said.

“The group remains conservatively geared and possesses ample facilities to make any further acquisitions that may arise. The group performed well in 2015, and, with a strong management team and an excellent base of operating facilities and tangible assets, is well placed to take advantage of continuing developmental change in the bus industry.”

Rotala provides a range of transport services, from local bus services under contract to local authorities, to commercial bus routes. It has operations at Heathrow Airport, in the West Midlands, the North West and the South West. It also operates the Flights coach service.

Full year pre-tax profit was up 9% to £2.46m (2014: £2.26m), with adjusted basic earnings per share up 5% to 5.19p per share (2014: 4.95p).

Gross profit margin reached 18.7% (2014: 17.7%) on a slightly reduced turnover of £50.9m (2014: £51.7m).