Rotala Management - Questions & Answers

[iamwilljh92]

7. Obviously if you could tempt any of he likes of Claribels / Hansons / Johnsons (bus only side) / Whittle's (bus side only) to join the Rotala fold, they would fit the desired criteria in the West Midlands, DeCourcey could provide the base that you have been searching for in Long Acre's Coventry / Solihull Signature work. I assume even Birmingham International Coaches would compliment the Flights Hallmark business. With Abus & Faresaver fitting the same criteria for Wessex region.

I am HIGHLY in favour of Rotala purchasing Whittle's @Winston but it occurs to me that Rotala are either
a) digging they're heels in or
b) just aren't interested

Either one I don't have a clue but at least if they did I could finally get a job back with Diamond/Rotala

Will,

You missed:

c) EYMS don't want to sell out
d) Competition issues may prevent Rotala from ever acquiring the Whittle's bus business if it became for sale

I thought you left your job @ Diamond KR?

Yes I did leave and now regretting it...

Why? Weren't the hours long enough for you...........

No wasn't that the hours were perfect but I wasn't fast enough

[Liverpool Street]

7. Obviously if you could tempt any of he likes of Claribels / Hansons / Johnsons (bus only side) / Whittle's (bus side only) to join the Rotala fold, they would fit the desired criteria in the West Midlands, DeCourcey could provide the base that you have been searching for in Long Acre's Coventry / Solihull Signature work. I assume even Birmingham International Coaches would compliment the Flights Hallmark business. With Abus & Faresaver fitting the same criteria for Wessex region.

I am HIGHLY in favour of Rotala purchasing Whittle's @Winston but it occurs to me that Rotala are either
a) digging they're heels in or
b) just aren't interested

Either one I don't have a clue but at least if they did I could finally get a job back with Diamond/Rotala

Will,

You missed:

c) EYMS don't want to sell out
d) Competition issues may prevent Rotala from ever acquiring the Whittle's bus business if it became for sale

I thought you left your job @ Diamond KR?

Yes I did leave and now regretting it...

Why? Weren't the hours long enough for you...........

No wasn't that the hours were perfect but I wasn't fast enough

Running time too tight I presume. Now why doesn't that surprise me! Screw these companies who care more about profits then safety and their workforce.

[iamwilljh92]

7. Obviously if you could tempt any of he likes of Claribels / Hansons / Johnsons (bus only side) / Whittle's (bus side only) to join the Rotala fold, they would fit the desired criteria in the West Midlands, DeCourcey could provide the base that you have been searching for in Long Acre's Coventry / Solihull Signature work. I assume even Birmingham International Coaches would compliment the Flights Hallmark business. With Abus & Faresaver fitting the same criteria for Wessex region.

I am HIGHLY in favour of Rotala purchasing Whittle's @Winston but it occurs to me that Rotala are either
a) digging they're heels in or
b) just aren't interested

Either one I don't have a clue but at least if they did I could finally get a job back with Diamond/Rotala

Will,

You missed:

c) EYMS don't want to sell out
d) Competition issues may prevent Rotala from ever acquiring the Whittle's bus business if it became for sale

I thought you left your job @ Diamond KR?

Yes I did leave and now regretting it...

Why? Weren't the hours long enough for you...........

No wasn't that the hours were perfect but I wasn't fast enough

Running time too tight I presume. Now why doesn't that surprise me! Screw these companies who care more about profits then safety and their workforce.

Oh I wasn't a driver I was fueller & shunter and I'm trying desprately to go back but Bob Baker has said no :(

[winston]

Hi Simon,

I've replied to your earlier replies on pg 68, just in case it's gets lost in between Will & LS's hijacking your thread  ::)

(This message will self destruct......)

[Liverpool Street]

Hi Simon,

I've replied to your earlier replies on pg 68, just in case it's gets lost in between Will & LS's hijacking your thread  ::)

(This message will self destruct......)

Meh. My point still stands. ;) Topic Derailment Continues...


/admin

[Simon Dunn]

Winston,

In response to your points

1.  I have a grasp of stock for new vehicles, and I am not concerned about second hand vehicles being snapped up. 

2.  Overall I understand that Redditch and Kidderminster PVR are static.  Kidderminster is up by 2/3 and Reddtich is down by 2/3

3.  30002 will be used in the West Midlands upon return to service, so will be FJ57CYW, and YJ07JRU

4.  30302 is the white vehicle at Long Acre.

5.  As you say the words used in the announcement is "low requirement for replacement vehicles", this doesnt mean we are not intending to do nothing.

6.  I do believe the fleet is in good condition, like any fleet there is some revolving requirements, and we are working to resolve them.   

7.  I too would like to make acquisitions.  We have the ability to do so, and continue to look at opportunities.  Clearly businesses were we can reduce depot overhead always make more sense were available. 

8.  Like any PLC shareholders expect improve Earnings per share.  As we deliver excess cash, and if we are not making acquistions one use of the cash would be reduce the number of shares. 

Simon

Hi Simon,

Many thanks for your responses to my points, to a couple more to add,

2. I take it the increase in KR Pvr will be the result of the Droitwich town services being operated out of there

6. I would personally like to see the last of the 'Go West Midlands liveried' Darts be withdrawn and possibly something done with the ex Swift 226 red Darts. I'd also quite like to see maybe one possibly two higher profile Diamond routes re-launched each year with new/nearly new buses i.e. 002 (the branded B7RLE/Centro's appear to becoming more & more unreliable and seem to spend quite a bit of time parked up in Tividale), maybe one the Sandwell 'Value' branded routes to coincide with NXWM's investment within Sandwell? Also, is there any possibility of the 57/58 being upgraded with new /nearly new buses in Redditch?

7. Is differences in valuations / price normally the main stumbling block on concluding a deal? Clearly businesses where we can reduce depot overhead always make more sense were available. From this comment are you referring to businesses that could be absorbed it to existing Rotala depots as happened with Ludlows etc?

8. Doesn't reducing debt levels also improve earning per share through larger retained profits due to falling finance cost, increases in dividends, the stock market may re-value the groups shares due to falling debt levels/increases in nett asset values. Admittedly the earnings per share wouldn't increase as quickly as reducing the number of shares, but surely shareholders & the Group would benefit from reduced debt levels. Would it not also give Rotala scope for future bigger acquisitions if the right one came along? Or is it a case that debt finance costs are that low due to the current rate of interest that you would loose more on the extra corporation tax being paid on increased profits/against the savings you'd make of finance costs if debt was reduced by say £1 million etc?

Winston,

2.  This is the main difference.

6.  Over the last year we have modernise both the fleets in Redditch and Tividale, and we aim to continue to do so.

7.  The main stumbling block is normally price, and yes Ludlows would be an example of a business which could be absorbed into existing Rotala depots.

8.  Our current level of debt is at an acceptable level, and if you follow our underlying debt cost over the years from the PLC accounts it has continued to reduce.  Yes, less debt will grow earnings but not materially. 

Simon

Thanks Simon,

6. I'm not disputing Rotala haven't modernized Redditch & Tividale fleets, but with both Redditch & Tividale other than the 5 x 63 plate DF Streelights & 4 x 13 plate B7RLE/Wright respectively, then ther's quite a big gap between those and next newest, i.e. the remainder of the front-line full size singles deckers are all of similar age i.e 07 / 57 / 08 / 58 & 09 (the earliest of which are getting close to midlife). Is it really not viable for Rotala to buy smaller quantities of new vehicles for Diamond on an annual basis, even if it was say just 10 each & every year and put the stock on to the highest earning routes/routes with most potential to grow patronage? Surely with all the new vehicle investment NX are putting on the roads of the West Midland by the end of 2015, Rotala may need to consider investing more as well?

7. Obviously if you could tempt any of he likes of Claribels / Hansons / Johnsons (bus only side) / Whittle's (bus side only) to join the Rotala fold, they would fit the desired criteria in the West Midlands, DeCourcey could provide the base that you have been searching for in Long Acre's Coventry / Solihull Signature work. I assume even Birmingham International Coaches would compliment the Flights Hallmark business. With Abus & Faresaver fitting the same criteria for Wessex region.

What's the matter with Wessex WF Streetlite MX60BWP?
https://www.flickr.com/photos/99180483@N03/14867894261/

Winston,

I agree we need to have a look at on going renewal were appropriate.  Obviously a chunk of our West Midlands Business is for supported contracts.  In these circumstances it is difficult to commit to long term investment

With regards other operators it would be wrong for me to comment any further



Simon

[Trident 4194]

Why does one of your drivers regularly wear the green bus uniform on 142

[winston]

Winston,

In response to your points

1.  I have a grasp of stock for new vehicles, and I am not concerned about second hand vehicles being snapped up. 

2.  Overall I understand that Redditch and Kidderminster PVR are static.  Kidderminster is up by 2/3 and Reddtich is down by 2/3

3.  30002 will be used in the West Midlands upon return to service, so will be FJ57CYW, and YJ07JRU

4.  30302 is the white vehicle at Long Acre.

5.  As you say the words used in the announcement is "low requirement for replacement vehicles", this doesnt mean we are not intending to do nothing.

6.  I do believe the fleet is in good condition, like any fleet there is some revolving requirements, and we are working to resolve them.   

7.  I too would like to make acquisitions.  We have the ability to do so, and continue to look at opportunities.  Clearly businesses were we can reduce depot overhead always make more sense were available. 

8.  Like any PLC shareholders expect improve Earnings per share.  As we deliver excess cash, and if we are not making acquistions one use of the cash would be reduce the number of shares. 

Simon

Hi Simon,

Many thanks for your responses to my points, to a couple more to add,

2. I take it the increase in KR Pvr will be the result of the Droitwich town services being operated out of there

6. I would personally like to see the last of the 'Go West Midlands liveried' Darts be withdrawn and possibly something done with the ex Swift 226 red Darts. I'd also quite like to see maybe one possibly two higher profile Diamond routes re-launched each year with new/nearly new buses i.e. 002 (the branded B7RLE/Centro's appear to becoming more & more unreliable and seem to spend quite a bit of time parked up in Tividale), maybe one the Sandwell 'Value' branded routes to coincide with NXWM's investment within Sandwell? Also, is there any possibility of the 57/58 being upgraded with new /nearly new buses in Redditch?

7. Is differences in valuations / price normally the main stumbling block on concluding a deal? Clearly businesses where we can reduce depot overhead always make more sense were available. From this comment are you referring to businesses that could be absorbed it to existing Rotala depots as happened with Ludlows etc?

8. Doesn't reducing debt levels also improve earning per share through larger retained profits due to falling finance cost, increases in dividends, the stock market may re-value the groups shares due to falling debt levels/increases in nett asset values. Admittedly the earnings per share wouldn't increase as quickly as reducing the number of shares, but surely shareholders & the Group would benefit from reduced debt levels. Would it not also give Rotala scope for future bigger acquisitions if the right one came along? Or is it a case that debt finance costs are that low due to the current rate of interest that you would loose more on the extra corporation tax being paid on increased profits/against the savings you'd make of finance costs if debt was reduced by say £1 million etc?

Winston,

2.  This is the main difference.

6.  Over the last year we have modernise both the fleets in Redditch and Tividale, and we aim to continue to do so.

7.  The main stumbling block is normally price, and yes Ludlows would be an example of a business which could be absorbed into existing Rotala depots.

8.  Our current level of debt is at an acceptable level, and if you follow our underlying debt cost over the years from the PLC accounts it has continued to reduce.  Yes, less debt will grow earnings but not materially. 

Simon

Thanks Simon,

6. I'm not disputing Rotala haven't modernized Redditch & Tividale fleets, but with both Redditch & Tividale other than the 5 x 63 plate DF Streelights & 4 x 13 plate B7RLE/Wright respectively, then ther's quite a big gap between those and next newest, i.e. the remainder of the front-line full size singles deckers are all of similar age i.e 07 / 57 / 08 / 58 & 09 (the earliest of which are getting close to midlife). Is it really not viable for Rotala to buy smaller quantities of new vehicles for Diamond on an annual basis, even if it was say just 10 each & every year and put the stock on to the highest earning routes/routes with most potential to grow patronage? Surely with all the new vehicle investment NX are putting on the roads of the West Midland by the end of 2015, Rotala may need to consider investing more as well?

7. Obviously if you could tempt any of he likes of Claribels / Hansons / Johnsons (bus only side) / Whittle's (bus side only) to join the Rotala fold, they would fit the desired criteria in the West Midlands, DeCourcey could provide the base that you have been searching for in Long Acre's Coventry / Solihull Signature work. I assume even Birmingham International Coaches would compliment the Flights Hallmark business. With Abus & Faresaver fitting the same criteria for Wessex region.

What's the matter with Wessex WF Streetlite MX60BWP?
https://www.flickr.com/photos/99180483@N03/14867894261/

Winston,

I agree we need to have a look at on going renewal were appropriate.  Obviously a chunk of our West Midlands Business is for supported contracts.  In these circumstances it is difficult to commit to long term investment

With regards other operators it would be wrong for me to comment any further

Simon

Obviously Tividale once had the 10/60 plate MAN/MCV's & the 12 plate Versa Hybrids which would have bridged the gap between the 13 plate B7RLE/Wight & the 09 plate Royales, but those were either sold/transferred without like for like replacements. I appreciate that tendered work doesn't support new vehicles, I was thinking more along the lines of core/higher frequency Diamond commercial routes such as the 002, 4, 42A/C, 56, 57/58, 301, Solihull Signature Work etc, that I assume could support new / newer vehicles.

Personally, I think both Diamond & Preston Bus would benefit from regular annual new vehicle investment, even if it was just one route being re-launch per year with new vehicles, this should help spread out capital expenditure out over the longer term / supplemented by used vehicle acquisitions. Wessex & Heathrow new vehicle requirements appear to be more dictated by contractual requirements.

I didn't expect you to be able comment on my acquisition suggestions, that was just me thinking out loud. I'm sure you are well aware of all possibilities.

Thanks for all your replies. I'll leave you in peace now!

Probably not of interest, Hatts Coaches auction of Bus & Coach assets
http://www.bidspotter.co.uk/en-gb/auction-catalogues/gwa-auctioneers/catalogue-id-gw10050

[winston]

Hi Simon,

Re: The Worcestershire area service changes, could you please clarify the following:

Extract from Diamond website 2L - Kidderminster to Ludlow. Replaces the former 292 with increased half hourly service. That suggests that the 2L is being increased in frequency to half hourly, where the timetable on the WCC website from 1st Sept suggests that the 2L is being reduced in frequency to approx every 1 hr 30mins - Could you please clarify.

141/145 - These services were cancelled by Diamond via VOSA during July, however they are missing off this list of cancellations/to be operated by another operator or have Diamonds plans since changed?

149 - Could you please confirm the line of route that the 149 will take i.e. via Main Roads at per First 144A or via Stoke Heath as current 141?

Extract from Diamond website 247 - Redditch to Evesham. New timetable changes and now some shorter journeys to Alcester.* Are these shorter journeys 'additional' or are some existing journeys cut short to Alcester?

[Cedric]

Hi Simon,

Re: The Worcestershire area service changes, could you please clarify the following:

Extract from Diamond website 2L - Kidderminster to Ludlow. Replaces the former 292 with increased half hourly service. That suggests that the 2L is being increased in frequency to half hourly, where the timetable on the WCC website from 1st Sept suggests that the 2L is being reduced in frequency to approx every 1 hr 30mins - Could you please clarify.

141/145 - These services were cancelled by Diamond via VOSA during July, however they are missing off this list of cancellations/to be operated by another operator or have Diamonds plans since changed?

149 - Could you please confirm the line of route that the 149 will take i.e. via Main Roads at per First 144A or via Stoke Heath as current 141?

Extract from Diamond website 247 - Redditch to Evesham. New timetable changes and now some shorter journeys to Alcester.* Are these shorter journeys 'additional' or are some existing journeys cut short to Alcester?

diamond site now  show the  2l  as being every 90 mins

[winston]

Hi Simon,

Re: The Worcestershire area service changes, could you please clarify the following:

Extract from Diamond website 2L - Kidderminster to Ludlow. Replaces the former 292 with increased half hourly service. That suggests that the 2L is being increased in frequency to half hourly, where the timetable on the WCC website from 1st Sept suggests that the 2L is being reduced in frequency to approx every 1 hr 30mins - Could you please clarify.

141/145 - These services were cancelled by Diamond via VOSA during July, however they are missing off this list of cancellations/to be operated by another operator or have Diamonds plans since changed?

149 - Could you please confirm the line of route that the 149 will take i.e. via Main Roads at per First 144A or via Stoke Heath as current 141?

Extract from Diamond website 247 - Redditch to Evesham. New timetable changes and now some shorter journeys to Alcester.* Are these shorter journeys 'additional' or are some existing journeys cut short to Alcester?

diamond site now  show the  2l  as being every 90 mins

Thanks Bowler, I noticed it has been updated since I posted the above

[the trainbasher]

Hi Simon, in this week's notices and proceedings there is both an alteration and a cancellation for service 226. Can you confirm what is to be happening to it?

Cheers

[Dave Spencer]

Hi Simon,

Have diamond thought about introducing a cheaper ticket on market days on the 16 to win passengers?

[winston]

Hi Simon,

Some further questions from me:

1. What is happening regarding the new Droitwich town services that were cancelled via VOSA from 4th Sept. Are they still being operated / or is it an admin error etc?
2. Can you confirm the changes being made to the 226 timetable (as there are the two conflicting registrations entered on VOSA), additionally will the route be reverting back to MPD's rather than the newer Solo's?
3. Will W904JNF be re-instated once repaired? seeing it has only recently returned to service rebuilt
4. What plans do Rotala have for the 2 ex Stagecoach Dart/ALX200's given that they don't appear to be DDA compliant but have been given fleetnumbers?
5. As suggested on the forum, would it be a viable option for Diamond to consider taking on the 326 commercially following the loss of the Centro contract? Given that it is operated at a half hourly frequency rather than hourly as most other tendered routes
6. Have there been any further developments regarding vehicle sales or any possibility of any additional larger vehicles being acquired to replace the Cadets at Tividale & anything else which has been sold?
7. Have Diamond considered the possibility of replacing Whittle's 125 hourly journey's that have been cut between Kidderminster & Stourbridge to link in with Diamond WM services? I may as provide a means of getting 142 buses back from Stourbidge to KR depot in service. With Xmas fast approaching a service between Kidderminster & Merry Hill via Stourbridge may also be worth consideration.
8. Are there any plans to change the balance of contracted work at Wessex in favour of more commercial work? At present First Bristol appear to be intent on pushing Wessex off certain tendered routes by taking them on commercially, the 178/179 being the latest examples from early Nov. In additional, First have substantially increased their presence serving UWE campuses and will no doubt bid aggressively for any future Park & Ride routes & possibly the UWE contract as/when they come up for tender.
9. Were the recent Heathrow Airport elements of TGM recently sold by Arriva of interest to Rotala?

Thanks in advance and I look forward to your replies, 

[Cedric]

Hi Simon,

Some further questions from me:

1. What is happening regarding the new Droitwich town services that were cancelled via VOSA from 4th Sept. Are they still being operated / or is it an admin error etc?
2. Can you confirm the changes being made to the 226 timetable (as there are the two conflicting registrations entered on VOSA), additionally will the route be reverting back to MPD's rather than the newer Solo's?
3. Will W904JNF be re-instated once repaired? seeing it has only recently returned to service rebuilt
4. What plans do Rotala have for the 2 ex Stagecoach Dart/ALX200's given that they don't appear to be DDA compliant but have been given fleetnumbers?
5. As suggested on the forum, would it be a viable option for Diamond to consider taking on the 326 commercially following the loss of the Centro contract? Given that it is operated at a half hourly frequency rather than hourly as most other tendered routes
6. Have there been any further developments regarding vehicle sales or any possibility of any additional larger vehicles being acquired to replace the Cadets at Tividale & anything else which has been sold?
7. Have Diamond considered the possibility of replacing Whittle's 125 hourly journey's that have been cut between Kidderminster & Stourbridge to link in with Diamond WM services? I may as provide a means of getting 142 buses back from Stourbidge to KR depot in service. With Xmas fast approaching a service between Kidderminster & Merry Hill via Stourbridge may also be worth consideration.
8. Are there any plans to change the balance of contracted work at Wessex in favour of more commercial work? At present First Bristol appear to be intent on pushing Wessex off certain tendered routes by taking them on commercially, the 178/179 being the latest examples from early Nov. In additional, First have substantially increased their presence serving UWE campuses and will no doubt bid aggressively for any future Park & Ride routes & possibly the UWE contract as/when they come up for tender.
9. Were the recent Heathrow Airport elements of TGM recently sold by Arriva of interest to Rotala?

Thanks in advance and I look forward to your replies, 

Winston  think it was a addmin error as diamond are still on the today 133