Rotala Management - Questions & Answers

[Westy]

Hi . Next time you update the electronic displays,  any chance you could spell Mossley correctly?

Just saw 2 301's displaying Mossely !

I second that! On some of the vehicles in Kidderminster on the 10 it displays

" 10 Kidderminster via Offmore, Spennels "

Now the "Spennels" bit is incorrect as it's actually spelt "Spennells"

I am told this has now been rectified

Spotted another 'Mossely' in Leamore earlier!

[Reece]

Dear Simon

On Saturday 25th October in Kidderminster the 4A to Franche 2:35 Dep from the Town hall never arrived why? I gave up after waiting for 30 Minutes and caught the Whittles 2A service as did many other people who wanted the 4A Service.

[PM]

Hi Simon

Thanks for your previous replies

1) Are MAN/Centro's no longer considered appropriate/good buses for the fleet? I know you said a while back that you thought they were an acceptable product?

2) How many more vehicles are transferring over to Kidderminster and could you confirm if W936JNF and perhaps other vehicles have also been acquired? Is this bus and others not quite old for being acquired/returned to service when there are other MPDs within the group withdrawn?

3) Are these for service enhancements/spare vehicles in the depot depending on what happens in the future?

4) I see the 002 has 2 timetable changes listed for December: are these to tackle reliability/bunching issues on the route?

5) Finally, did you have any luck acquiring the ex WCC Woosh Citaros at auction?

Many thanks :)

[Cedric]

Lm 172  your question would be answer  either on the website customer care section either by filling form in or ringing no on there
or on diamonds twitter account  rather than asking Simon  and you would get a answer quicker , as simon is a busy man ,

[Simon Dunn]

Hi Simon

Thanks for your previous replies

1) Are MAN/Centro's no longer considered appropriate/good buses for the fleet? I know you said a while back that you thought they were an acceptable product?

2) How many more vehicles are transferring over to Kidderminster and could you confirm if W936JNF and perhaps other vehicles have also been acquired? Is this bus and others not quite old for being acquired/returned to service when there are other MPDs within the group withdrawn?

3) Are these for service enhancements/spare vehicles in the depot depending on what happens in the future?

4) I see the 002 has 2 timetable changes listed for December: are these to tackle reliability/bunching issues on the route?

5) Finally, did you have any luck acquiring the ex WCC Woosh Citaros at auction?

Many thanks :)

Dear Sir,

1.  We are not looking to acquire any more.
2.  We swapped this vehicle, for one which wasnt in as good condition
3.  We have increased the number of usable spare vehicles, in case of future opportunities
4.  002 timetable changes are aimed at increasing hours of operation in the run up to Christmas
5.  No



Simon

[iamwilljh92]

Hi Simon,

Could you confirm if 30516 (W906 JNF) will be returning to Kidderminster once resprayed/repaired and also do you have any intentions of transferring over 20114 (Y2 JPT); 20132 (Y32 YVV)?

Also how many more vehicles are coming over as I've heard a few people say there's around 10 more coming over but is this correct?

As always I look froward to your responce

Will

[Simon Dunn]

Hi Simon,

Could you confirm if 30516 (W906 JNF) will be returning to Kidderminster once resprayed/repaired and also do you have any intentions of transferring over 20114 (Y2 JPT); 20132 (Y32 YVV)?

Also how many more vehicles are coming over as I've heard a few people say there's around 10 more coming over but is this correct?

As always I look froward to your responce

Will

Will

We have lost a little mileage lately due to a lack of spare buses.  Our plan is to increase the spare buses.

It would be inappropriate to increase the fleet by 10 vehicles, without an increase in work and there is no intention in doing so.




Simon

[iamwilljh92]

Hi Simon,

Could you confirm if 30516 (W906 JNF) will be returning to Kidderminster once resprayed/repaired and also do you have any intentions of transferring over 20114 (Y2 JPT); 20132 (Y32 YVV)?

Also how many more vehicles are coming over as I've heard a few people say there's around 10 more coming over but is this correct?

As always I look froward to your responce

Will

Will

We have lost a little mileage lately due to a lack of spare buses.  Our plan is to increase the spare buses.

It would be inappropriate to increase the fleet by 10 vehicles, without an increase in work and there is no intention in doing so.




Simon

I see well if that is the case couldn't 20503 (T71 JBA); 31495 (S405 TMB); 30378 (S378 TMB) be put back into service as additional buses rather than spend money buying more fleet so they could be used if and when needed?

[Simon Dunn]

Hi Simon,

Could you confirm if 30516 (W906 JNF) will be returning to Kidderminster once resprayed/repaired and also do you have any intentions of transferring over 20114 (Y2 JPT); 20132 (Y32 YVV)?

Also how many more vehicles are coming over as I've heard a few people say there's around 10 more coming over but is this correct?

As always I look froward to your responce

Will

Will

We have lost a little mileage lately due to a lack of spare buses.  Our plan is to increase the spare buses.

It would be inappropriate to increase the fleet by 10 vehicles, without an increase in work and there is no intention in doing so.




Simon

I see well if that is the case couldn't 20503 (T71 JBA); 31495 (S405 TMB); 30378 (S378 TMB) be put back into service as additional buses rather than spend money buying more fleet so they could be used if and when needed?

Will

I am awaiting cleared funds but we believe the 2 x S registrations have been sold


Simon

[iamwilljh92]

Hi Simon,

Could you confirm if 30516 (W906 JNF) will be returning to Kidderminster once resprayed/repaired and also do you have any intentions of transferring over 20114 (Y2 JPT); 20132 (Y32 YVV)?

Also how many more vehicles are coming over as I've heard a few people say there's around 10 more coming over but is this correct?

As always I look froward to your responce

Will

Will

We have lost a little mileage lately due to a lack of spare buses.  Our plan is to increase the spare buses.

It would be inappropriate to increase the fleet by 10 vehicles, without an increase in work and there is no intention in doing so.




Simon

I see well if that is the case couldn't 20503 (T71 JBA); 31495 (S405 TMB); 30378 (S378 TMB) be put back into service as additional buses rather than spend money buying more fleet so they could be used if and when needed?

Will

I am awaiting cleared funds but we believe the 2 x S registrations have been sold


Simon

Oh that's good news could T71 JBA be kept as a Kidderminster reserve vehicle I would actually like to see that re-enter service good little bus she was tbh

[PM]

Thanks for your previous replies Simon

Just a couple more:

1) Did you consider the citaros/bid on them?

2) I see in the fleet changes another RH b7rle has moved over to Tividale-are there plans to move over more?

3) Does RH not need at least a couple more higher capacity buses to replace them? The centros moved in have far less buggy space which from my observations seems very important over in RH?

4) Have there been any updates on the sale of LAC/expansion of Tividale?

5) What is the significance of the two VOSA changes on the 002 for different days in December? Is this when Christmas timetables with later journeys start/end?

6) Do you plan to run journeys co-inciding with Merry Hill's extra late opening in the run up to Christmas ie up till midnight or earlier?

Thanks again

[winston]

Hi Simon,

1 - re: New Banking Facilities
I see Rotala have agreed new banking facilities of up to £18 Million allowing headroom of £10 Million available to fund potential acquisitions & share buy backs. Reading the RNS it suggests that the share backs will be funded by additional debt, is that the case? Are Rotala Plc not concerned that the groups current market cap @ 56p/share i.e. £19.8 Million is only £2.8 Million above the £17 Million debt that Rotala will have at the year end?

2 - re: Share Buybacks
I see Rotala have acquired 200,000 of their own shares today. Why are Rotala insistent on proceeding with share buybacks? I know that you've previously said that by reducing the number of shares in issue will boost the earning per share ratio, but that's artificially stimulating those figures, fundamentally the profit & debt levels of group will remain un-changed.

If Rotala has the means to buy back shares, in the absence of an earnings enhancing acquisition, would it not be more prudent to grow & expand Rotala's existing businesses through targeted investment i.e. expanding route networks/places served, increasing frequencies where possible to support continued growth and re-launching select routes that offer the greatest potential for growth & returns with new/nearly new buses & branding?

All other bus groups are investing heavily and experiencing growth and increased returns across their businesses.

3 - re: Group vehicle replacement policy
How long do Rotala currently anticipate having a low requirement for replacement vehicles for? Surely, the longer the level of vehicle replacements is kept low, the harder it will be to maintain the groups current average age of less than 8 years and it will cost more in subsequent years to keep it at that level.

The above policy doesn't meet the extract below from Rotala's Enviromental policy:

Rotala recognises its responsibility to limit the impact of its vehicles on the environment.
Exhaust fumes comprising (but not limited to) Carbon Monoxide (CO), Nitrogen (N) and Carbon Dioxide (CO2) are the major contributors to pollution from our vehicles.

Rotala aims to decrease its impact by constantly updating its fleet to newer, more fuel efficient and exhaust restricted vehicles.

4 - Wessex Expansion
I see from reports on a SW forum that Wessex are currently advertising for drivers on its buses due to expansion and all 12 Bristol services are being revised, can you advise when you anticipate registrations may be submitted or give any further details of Rotala's plans etc at this stage?

5 - Diamond
It's pleasing to see the effort Diamond have gone to re-launch the 301 & new 302 services with solid B7RLE. Obviously Tividale has gained some extra B7RLE's over the past few months i.e. 30002, 30813, 30855 & 30860 along with extra Solo's, but during the same it has lost the 6 Cadets + more recently two more of its biggest Darts to KR i.e. 30426 & 30512.

Looking at the remaining fleet make-up, Tividale now has 32 full size buses i.e. 31 x B7RLE, 1 x MAN, these are now the mainstay for the 002, 4/4H, 56, 301 & 302 which I assume spares are now few & far between. With only 7 x Cadets + 4 full size Darts remaining (i.e. 30432, 30437 & 30454/5) Tividale must be under to pressure to put large enough buses out on some of the above routes + other Sandwell Value services & in the event of B7RLE breakdown.

I know you've previously acknowledged Diamond has too many small buses, but the issue seems to be getting worse for Tividale at least. Could Rotala not look to acquire some additional/newer full length Darts either ex London (converted to single door) or ex Rental similar to the 52 plate Hanson's examples to boost availability of larger vehicle & capacity?

5 - VDL / Plaxton Centro's
I know they are not your vehicle of choice, but would the batch of 12M 58 plate VDL/Plaxton Centro's currently for sale at Arriva Bus & Coach not be of interest to Rotala to add to the 5 being retained at Redditch? I'm sure not being so popular, Rotala may be able to pick them up cheaper

http://arrivabusandcoach.co.uk/vehicles/search/condition:Used/vehicle_type_id:2/use_advanced:0/mileage:210,000%20-%20500,000%20Miles/seats:30%20-%2060/age:2%20-%2015%20Years/toilet:on

Thanks in advance & I look forward to your replies,

[Simon Dunn]

Thanks for your previous replies Simon

Just a couple more:

1) Did you consider the citaros/bid on them?

2) I see in the fleet changes another RH b7rle has moved over to Tividale-are there plans to move over more?

3) Does RH not need at least a couple more higher capacity buses to replace them? The centros moved in have far less buggy space which from my observations seems very important over in RH?

4) Have there been any updates on the sale of LAC/expansion of Tividale?

5) What is the significance of the two VOSA changes on the 002 for different days in December? Is this when Christmas timetables with later journeys start/end?

6) Do you plan to run journeys co-inciding with Merry Hill's extra late opening in the run up to Christmas ie up till midnight or earlier?

Thanks again

Dear Sir,

1.  No we didnt
2.  When the fleet stablises we will review.
3.  The RH fleet is about right.  We need to reduce the numbers of spares, which will be the shorter buses. 
4.  Long Acre

We have continued interest, but we yet we have turned down any offers made.

Tividale

We have are undertaking some ground testing, with a view to establishing what can be done.  This should be completed within a few weeks.

5.  Yes, it is for Xmas Shopping.

6.  Our 002 service timetable will be available shortly




Simon

[iamwilljh92]

Hi Simon,

Any updates on the reinstatement of 20503 yet?

Will

[Simon Dunn]

Hi Simon,

1 - re: New Banking Facilities
I see Rotala have agreed new banking facilities of up to £18 Million allowing headroom of £10 Million available to fund potential acquisitions & share buy backs. Reading the RNS it suggests that the share backs will be funded by additional debt, is that the case? Are Rotala Plc not concerned that the groups current market cap @ 56p/share i.e. £19.8 Million is only £2.8 Million above the £17 Million debt that Rotala will have at the year end?

2 - re: Share Buybacks
I see Rotala have acquired 200,000 of their own shares today. Why are Rotala insistent on proceeding with share buybacks? I know that you've previously said that by reducing the number of shares in issue will boost the earning per share ratio, but that's artificially stimulating those figures, fundamentally the profit & debt levels of group will remain un-changed.

If Rotala has the means to buy back shares, in the absence of an earnings enhancing acquisition, would it not be more prudent to grow & expand Rotala's existing businesses through targeted investment i.e. expanding route networks/places served, increasing frequencies where possible to support continued growth and re-launching select routes that offer the greatest potential for growth & returns with new/nearly new buses & branding?

All other bus groups are investing heavily and experiencing growth and increased returns across their businesses.

3 - re: Group vehicle replacement policy
How long do Rotala currently anticipate having a low requirement for replacement vehicles for? Surely, the longer the level of vehicle replacements is kept low, the harder it will be to maintain the groups current average age of less than 8 years and it will cost more in subsequent years to keep it at that level.

The above policy doesn't meet the extract below from Rotala's Enviromental policy:

Rotala recognises its responsibility to limit the impact of its vehicles on the environment.
Exhaust fumes comprising (but not limited to) Carbon Monoxide (CO), Nitrogen (N) and Carbon Dioxide (CO2) are the major contributors to pollution from our vehicles.

Rotala aims to decrease its impact by constantly updating its fleet to newer, more fuel efficient and exhaust restricted vehicles.

4 - Wessex Expansion
I see from reports on a SW forum that Wessex are currently advertising for drivers on its buses due to expansion and all 12 Bristol services are being revised, can you advise when you anticipate registrations may be submitted or give any further details of Rotala's plans etc at this stage?

5 - Diamond
It's pleasing to see the effort Diamond have gone to re-launch the 301 & new 302 services with solid B7RLE. Obviously Tividale has gained some extra B7RLE's over the past few months i.e. 30002, 30813, 30855 & 30860 along with extra Solo's, but during the same it has lost the 6 Cadets + more recently two more of its biggest Darts to KR i.e. 30426 & 30512.

Looking at the remaining fleet make-up, Tividale now has 32 full size buses i.e. 31 x B7RLE, 1 x MAN, these are now the mainstay for the 002, 4/4H, 56, 301 & 302 which I assume spares are now few & far between. With only 7 x Cadets + 4 full size Darts remaining (i.e. 30432, 30437 & 30454/5) Tividale must be under to pressure to put large enough buses out on some of the above routes + other Sandwell Value services & in the event of B7RLE breakdown.

I know you've previously acknowledged Diamond has too many small buses, but the issue seems to be getting worse for Tividale at least. Could Rotala not look to acquire some additional/newer full length Darts either ex London (converted to single door) or ex Rental similar to the 52 plate Hanson's examples to boost availability of larger vehicle & capacity?

5 - VDL / Plaxton Centro's
I know they are not your vehicle of choice, but would the batch of 12M 58 plate VDL/Plaxton Centro's currently for sale at Arriva Bus & Coach not be of interest to Rotala to add to the 5 being retained at Redditch? I'm sure not being so popular, Rotala may be able to pick them up cheaper

http://arrivabusandcoach.co.uk/vehicles/search/condition:Used/vehicle_type_id:2/use_advanced:0/mileage:210,000%20-%20500,000%20Miles/seats:30%20-%2060/age:2%20-%2015%20Years/toilet:on

Thanks in advance & I look forward to your replies,

Winston,

1.  There is no relevance of debt and market capitalisations.  Typically people consider the relationship between EBITDA/Debt.  I am not allowed under market rules to outline our leverage levels, but I will say that we consider our business to be conservatively leveraged.

2.  If we can foresee an opportunity to increase earnings by investment, then we will proceed.  Rotala has considerable ability to both undertake buy backs, invest and make acquisitions.

3.  We do intend to constantly update our fleet, and we have shown that over the years so we are consistent with this statement.  In terms of what, when, and how much.  Time is on our side.

4.  We are evolving our structure, and from mid January 2015 we have created a new post and appointed a Managing Director responsible for this business unit. 

5.  We have made an offer to acquire 6 x B7RLE's and 2 x E300's, which would be for DBCL.   

6.  It is not a vehicle which we want to invest in. 




Simon