Rotala PLC Pre-close trading statement (8141N)
23 January 2019 - 6:00PM
UK Regulatory
TIDMROL
RNS Number : 8141N
Rotala PLC
23 January 2019
RNS
23 January 2019
Rotala Plc
("Rotala" or the "Company" or the "Group")
Pre-close trading statement
Rotala is pleased to announce the following update on trading
for the year ended 30 November 2018 ("FY 18") and the prospects for
the current year ending 30 November 2019 ("FY 19").
FY 18 trading
The Company announces that trading during FY 18 was in line with
market expectations. Net debt, which stood at GBP32.8 million at
the half year, had fallen to GBP31.5 million by the end of the
year. During the financial year, the Group achieved further growth
through the acquisition, from CEN Group Limited, of its entire bus
business, trading as "Central Buses". This acquisition was made in
accordance with the Group's declared strategy of acquisitive growth
and has considerably strengthened the Group's network of bus
services in the northern part of Birmingham, particularly in the
Perry Barr area.
Fuel Hedging
Currently, the annual fuel requirement of the Group is
approximately 11.5 million litres. Taking advantage of a weakness
in crude oil prices, in late November 2018, the Board took out a
number of fuel hedge contracts, using diesel derivatives, in order
to cover approximately 50% of its fuel requirement for FY 2019. The
coverage of these hedging contracts has recently been extended. All
of the Group's fuel requirement for 2019 has now been covered by
hedging contracts, at an average price of 100p per litre, which is
the price that the Group has used in preparing its budget for
2019.
The Board will continue to monitor market conditions closely and
take out such further fuel hedges as it deems are appropriate to
meet its objective of reducing volatility in its costs and creating
business certainty.
Dividend
The Company expects to maintain its progressive dividend policy
and will be announcing details of a final dividend payment in due
course.
FY 19 outlook
The Company is pleased to report that trading for the current
year has begun in line with budget. In the view of the Board, the
uncertainty and disruption caused by the Bus Services Act 2017
continues to drive change in the bus industry. Accordingly, the
Board remains focused on identifying suitable acquisitions which
will enhance and expand the services of the Group. At the same time
the Group possesses ample financial facilities to undertake further
acquisitions.
The Group performed well in 2018 and, with a strong management
team and a comprehensive network of operating facilities, is well
placed to take advantage of these continuing developments in the
bus industry. Such uncertainty brings opportunity to groups like
Rotala and the Group is well placed to take advantage of any
acquisition opportunities that may arise.
Rotala Plc 0121 322 2222
John Gunn, Chairman
Simon Dunn, Chief Executive
Kim Taylor, Group Finance Director
Nominated Adviser & Joint Broker:
Cenkos Securities plc 020 7397 8900
Stephen Keys/Callum Davidson (Corporate Finance)
Michael Johnson/Julian Morse (Corporate Broking)
Joint Broker: Dowgate Capital Stockbrokers Ltd 0203 903 7715
David Poutney/James Serjeant (Corporate Broking)
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END
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