Rotala plc Acquires Rolling Solutions Limited
Rotala is pleased to announce the acquisition from Rolling Solutions Limited and Mr Julian Peddle of the entire share capital of Green Triangle Buses Limited ("GTB") for a cash consideration of £900,000 ("The Acquisition"). At completion Rotala also repaid approximately £368,000 to GTB's bankers to settle the outstanding overdraft. At the date of acquisition GTB had net assets of some £466,000 including Hire Purchase debt of £233,000. In the year ended 31st August 2014, GTB had revenues of approximately £3.9 million and a profit before tax and exceptional items of £107,000. On this basis the Acquisition is expected to generate about £450,000 of positive goodwill.
GTB operates 43 vehicles from a long leasehold depot in Atherton, Manchester and employs about 100 staff. The depot is well placed within the local transport network and capable of handling the expansion needs envisaged for GTB at the current time. The Acquisition will enable the Company to enhance its position in the Lancashire market and give it access for the first time to the Greater Manchester area which falls under the remit of Transport for Greater Manchester. Operationally GTB (which will be renamed Diamond Bus (North West) Limited in due course) will be part of the North West division of Rotala, with its existing hub in Preston headed by Bob Dunn as Managing Director.
The Acquisition is not expected to have a material impact on earnings in the current financial year. The integration of operations and overheads is expected to have been fully implemented by the end of the current financial year. Following these steps, the Acquisition is expected to have a beneficial effect on earnings in future years.