Rotala acquires First Group's Worcestershire bus operations

Rotala has acquired certain of First Group's bus operations in Worcestershire for a cash consideration of 1.5m pounds, according to a trading update posted on Thursday.

Rotala has acquired certain of First Group's bus operations in Worcestershire for a cash consideration of 1.5m pounds, according to a trading update posted on Thursday.

The company will acquire two freehold depots, one in Kidderminster and the other in Redditch, 36 vehicles, and various items of plant and equipment and will continue to run the services that First currently operates from these depots.

The Kidderminster depot comprises a site of two acres which can accommodate up to 60 vehicles, while the Redditch depot, built about 35 years ago, can accommodate about 50 vehicles.

In the year ending June 30th 2012, the depots reported combined revenues of approximately £5.2m and an operating loss of £0.27m. They employ about 120 staff collectively.

Rotala announced that the acquisition would enable the company to expand and consolidate its position in the areas of Worcestershire, which were contiguous to its main areas of operation in the Birmingham conurbation.

By integrating the acquired depots into its current depot network, it stated that it would be able to take advantage of operating efficiencies generated by the acquisition.

There was no change in Rotala's share price at 44.50p at 09:50 on Thursday.

MF

Recommended

Britain’s ten most-hated shares – w/e 1 July
Stocks and shares

Britain’s ten most-hated shares – w/e 1 July

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
4 Jul 2022
Britain’s most-bought shares w/e 1 July
Stocks and shares

Britain’s most-bought shares w/e 1 July

A look at Britain’s most-bought shares in the week ending 1 July, providing an insight into how investors are thinking and where opportunities may lie…
4 Jul 2022
M&G offers a solid 10.1% yield – but future growth is uncertain
Share tips

M&G offers a solid 10.1% yield – but future growth is uncertain

Financial services group M&G has one of the highest dividend yields in the FTSE 100. But it’s a complicated company, and a tough one to analyse, says …
4 Jul 2022
How to boost your income as dividends come back in fashion
Income investing

How to boost your income as dividends come back in fashion

Dividends are back in fashion. But how do you go about building an income-generating portfolio?
4 Jul 2022

Most Popular

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks
European stockmarkets

Ray Dalio’s shrewd $10bn bet on the collapse of European stocks

Ray Dalio’s Bridgewater hedge fund is putting its money on a collapse in European stocks. It’s likely to pay off, says Matthew Lynn.
3 Jul 2022
UK house prices are definitely cooling off – but are they heading for a fall?
House prices

UK house prices are definitely cooling off – but are they heading for a fall?

UK house prices hit a fresh high in June, but as interest rates start to rise, the market is cooling John Stepek assesses just how much of an effect h…
30 Jun 2022
Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022