Rotala Group Ltd

[2206]

No idea, it doesn't give any hint of location

@Westy - Tie a lie, the John Gunn statement does say the acquisitions will boost Rotala's presence in the West Midlands & North West. I know Avon Buses are struggling to meet all their commitments at present with numerous service cancellations. I may be barking up the wrong tree though...........

Greater Manchester operator with a fleet of 18 buses?

"The Proposed Acquisition comprises a purchase of a freehold site and 18 buses from a business based in Greater Manchester. The Proposed Acquisition would be a strategic acquisition aimed at capitalising on the re-franchising opportunities in Greater Manchester. The Directors believe that, should it complete, it will enable Rotala to significantly grow its operations in this area and potentially double its bus capacity. No additional overheads are expected to be required as a result of the acquisition and the Directors believe that the Company will benefit from additional sales, gross profit and EBITDA contributions of approximately £2.0 million, £0.4 million and £0.2 million respectively under Rotala's ownership, in the first full year following completion of the Proposed Acquisition. "

[PM]

More info on the Hansons acquisition:

Hansons Acquisition

Hansons is based in Stourbridge between two of Rotala's existing depots.   The Directors believe that acquisition of Hansons will cement Rotala as the second largest operator in the West Midlands and is expected to strengthen its negotiating position for tendered services in the future. The Company expects to benefit from material synergies upon the integration and rationalisation of Hansons, with an expected Group EBITDA contribution of £0.4 million once integrated. These synergies will be realised primarily from:

·      moving Hansons assets across to Rotala's existing depots;
·      eliminating surplus overhead; and
·      the disposal of Hanson's existing depot.

As at 31 March 2017, Hansons had net assets of approximately £0.4 million and generated revenues and gross profits of approximately £2.0 million and £1.1 million respectively.* The cost of the Hansons acquisition is approximately £1 million, including the necessary working capital  and  capital expenditure associated with the acquisition, which will be satisfied from the net proceeds of the Subscription.

*Hansons unaudited financial statements for year ended 31 March 2017

I'd imagine some of the E200's are leased as otherwise asset value would be surely higher?

Plus additional to that, the following is in prelim stages:

The Company is also currently in negotiations relating to other acquisitions, all of which are at a preliminary stage, including:

Opportunity A

·      A further strategic acquisition in Manchester that could increase Rotala's bus capacity to 200 vehicles, representing approximately 10 per cent. of the local market

·      Cost of acquisition expected to be approximately £4.6 million, (financed through equity and debt)

·      Estimated revenue and EBITDA contributions of £11.0 million and £0.9 million in the first full year following completion of such acquisition

Opportunity B

·      Acquisition of airport based bus business

·      Common customer base with existing business

·      Would use existing spare depot capacity and overhead

·      Cost of acquisition expected to be £2.2 million, (financed through equity and debt)

·      Historic sales and EBITDA of £6.1 million and £0.5 million



Further info on the two possible acquisitions from the paragraph above:

"including a further strategic acquisition in Manchester and an airport based hotel bus business. Should they, or other similar opportunities proceed, they would be financed from the net proceeds of the Placing. It is expected that these acquisitions will be completed, if they should proceed, within the current financial year."

[winston]

When did all that little lot appear on the RNS announcement, wasn't there originally??

I'm thinking as follows:

Proposed acquisition is - Go Goodwins (The Little Gem Bus Company Ltd.
Opportunity A - For that size Arriva NW (Wythenshawe & Bolton depots)
Opportunity B - A bolt on hotel bus business for Hallmark Connections, Heathrow

[2206]

When did all that little lot appear on the RNS announcement, wasn't there originally??

It was all there when I looked at it yesterday afternoon at about 15:00.
Edit - meant 15:00.

[PM]

When did all that little lot appear on the RNS announcement, wasn't there originally??

I'm thinking as follows:

Proposed acquisition is - Go Goodwins (The Little Gem Bus Company Ltd.
Opportunity A - For that size Arriva NW (Wythenshawe & Bolton depots)
Opportunity B - A bolt on hotel bus business for Hallmark Connections, Heathrow

I don't remember seeing what I just posted when I initially looked yesterday.

There aren't that many additional operators in/around Heathrow that Rotala haven't already bought, following Wings and OFJ. I'd reckon it's a good market to be active in, especially given the prospect of the third runway.

[winston]

It was all there when I looked at it yesterday afternoon at about 14:00.

It wasn't there when I originally posted the link just before 1pm, and why has know one picked up on the rest until now?

Was it 2pm, 3pm or....

I don't remember seeing what I just posted when I initially looked yesterday.

There aren't that many additional operators in/around Heathrow that Rotala haven't already bought, following Wings and OFJ. I'd reckon it's a good market to be active in, especially given the prospect of the third runway.

That's because it wasn't there.

There's Menzies with a large airport bus operation, but not hotels based or could NX be considering disposing of Hotel Hoppa?

[2206]

Was it 2pm, 3pm or....

Certainly 3pm, I couldn't remember what time it was but, have remembered now and yes it was on there at 3pm.

[midlandred2003]

Regarding option A Bolton & Wythenshawe have approximately 85 vehicles, another option might be Rossendale ? which has about 115 vehicles they do work in Bury, Bolton & Rochdale.

[winston]

Regarding option A Bolton & Wythenshawe have approximately 85 vehicles, another option might be Rossendale ? which has about 115 vehicles they do work in Bury, Bolton & Rochdale.

Possibly. But Rosso's turnover up to March 31st 2016 was £9.5 million (someway off the £11 million quoted), plus it had also fallen from the year before. Unless turnover has since grown by 16+% 2016-17?

[midlandred2003]

Ok Winston I was just working on possible fleet sizes not turn over.

[winston]

Ok Winston I was just working on possible fleet sizes not turn over.

I'm not saying your wrong, just I ruled Rosso out based on the above facts

[winston]

Rotala Half Year results:
http://otp.investis.com/clients/uk/rotala/rns/regulatory-story.aspx?cid=182&newsid=900596

[tank90]

I have found out that Rotala now own Go Goodwins which was the company they took over in Manchester.

[winston]

I have found out that Rotala now own Go Goodwins which was the company they took over in Manchester.

Announced last Friday:
http://otp.investis.com/clients/uk/rotala/rns/regulatory-story.aspx?cid=182&newsid=911550

[979]

Announced last Friday:
http://otp.investis.com/clients/uk/rotala/rns/regulatory-story.aspx?cid=182&newsid=911550

http://www.route-one.net/articles/Business_deals/Rotala_spends__1m_to_buy_Goodwin_s_bus_operation