Bus company revenue up to £27.4m
BUS and coach operator Rotala, which has recently bought two North West coach companies, has seen an 11% increase in half year revenues, aided by a new acquisition and contract wins.
It is now looking to proposed changes in bus industry to help it maintain growth over the coming years.
The Black Country-based group, which also has a strong presence in the North West, said revenues for the six months ended May 31, 2016 were £27.4m (H1 2015: £24.6m).
Operating margins were maintained at 18.2% and pre-tax profits before exceptionals rose by 9% to £1.135m (H1 2015: £1.045m).
Revenues in Contracted Services rose overall by 22 %, when compared to the first half of 2015, to £9.8m (H1 2015: £8.1m).
Much of this success was due to its acquisition of the OFJ business in January. The company operates a service transporting flight crews around the Heathrow and Gatwick areas.
Revenues in Commercial Services, compared to the first half of 2015, rose by 5% to £16.6m (H1 2015: £15.9m).
Chairman John Gunn said: “The company has continued to make good progress in the first half of 2016. We were able to make one significant acquisition in the period and two more small ones after the period end.
“Whilst the bus industry continues to undergo considerable change, the aims of the Government’s Buses Bill have become much clearer since my last report. The effects of the Bill look to be very positive for (the) company.”
The Bill covers the re-franchising of bus networks in major cities and Rotala has a presence in three of the main conurbations, Greater Manchester, Bristol/Bath and the West Midlands.
Rotala recently bought Wigan Coachways for £213,000 hard on the heels of a £200,000 deal to buy Fylde-based Elite Minibus and Coach Services.
