Profits up at bus operator as it enters ‘extraordinary times’

Bus operator owner Rotala saw its turnover and profits rise for the year-ending 30 November 2019 – but has warned that the coronavirus epidemic could put further progress on hold.

Profits for the period came in at £67.5m – up 8%, while profits before tax rose by 4% to just over £6m.

Rotala provides local bus services under contract to local authorities and to commercial bus routes. It has operations at Heathrow Airport, in the West Midlands and the North West of England.

John Gunn, non-executive chairman, said: “The Group performed well in 2019 and before the Coronavirus epidemic was upon us trading for the current year began in line with expectations.

“Clearly we have now entered extraordinary times which are beyond any current experience. Bus services are regarded by the Government as an essential service. Government has therefore taken steps, through specific direction provided to all arms of the state at both national and local level, to ensure that bus companies have sufficient cash flow to support the operations that they are running. The board has also taken action on many fronts to align the bus services being operated with local requirements, reduce commensurately the costs of operation and conserve cash.

“If it is permitted to look beyond the coronavirus crisis, having regard to the fact that it is of unknown duration and effect, the recent announcement by the Government of large scale investment in bus transport heralds a new era in the bus industry after a difficult ten year period. However, in order to prosper in these conditions, bus companies will need to possess strong and experienced management. I am glad to say that Rotala has such a management team which has consistently proved itself over the last decade. Furthermore we do not see any let up in the potential for divestment and acquisition activity in the bus market in the next few years. We believe we are very well positioned to take full advantage of all these developments. Therefore we are confident about the prospects of the Group and excited about the possibility of expanding it considerably in the years ahead.”