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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Christmas at Chatsworth: review of The Cavendish Hotel at Baslow
MoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
By Dr Matthew Partridge Published
-
Tycoon Truong My Lan on death row over world’s biggest bank fraud
Property tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
By Jane Lewis Published