Rotala PLC Acquisition (9916D)

TIDMROL

RNS Number : 9916D

Rotala PLC

12 July 2016

12 July 2016

Rotala plc

("Rotala" or "the Company")

Acquisition in Lancashire

Rotala is pleased to announce the acquisition from Elite Minibus and Coach Services Limited ("Elite") of its entire business, brand and 6-strong vehicle fleet for a cash consideration of GBP200,000. Rotala estimates that the Elite business has annual revenues of approximately GBP500,000 and that its vehicle fleet has a fair value of approximately GBP150,000. Rotala will not assume any other assets or liabilities of any materiality on acquisition. On this basis the Acquisition is expected to generate about GBP50,000 of positive goodwill on consolidation.

Elite is a well-established operator of contracted services for local authorities and schools in the Blackpool area. It also has a successful private hire arm. This business, with its small number of existing staff, will be integrated into the outstation which Rotala already operates in Blackpool through its subsidiary company, Preston Bus Limited ("Preston Bus"). This acquisition will broaden the range of services which Preston Bus is able to offer in this area of Lancashire and add to its geographical reach. The Acquisition is expected to be earnings enhancing from completion.

For further information please contact:

 
 Rotala Plc                                  0121 322 2222 
 John Gunn, Chairman 
 Simon Dunn, Chief Executive Officer 
 Kim Taylor, Group Finance Director 
 
 Nominated Adviser & Broker: 
  Cenkos Securities plc                        020 7397 8900 
 Stephen Keys/Callum Davidson (Corporate 
  Finance) 
  Michael Johnson/Julian Morse (Corporate 
  Broking) 
 

This announcement contains price sensitive information.

This information is provided by RNS

The company news service from the London Stock Exchange

END

ACQUURNRNSABAAR

(END) Dow Jones Newswires

July 12, 2016 12:06 ET (16:06 GMT)