Rotala warns coronavirus could halt progress
Bus company Rotala has warned that the coronavirus epidemic could put further progress on hold after it saw turnover and profits rise.
The Tividale-based group, which operates Diamond Bus in the Black Country, Birmingham and Worcestershire, saw turnover rise by eight per cent to £67.5 million for the year-ending November 30 2019.
The bus operator, which also has operations at Heathrow Airport and the north west of England, also saw pre-tax profits rise by four per cent to just over £4 million.
John Gunn, non-executive chairman, said: “The group performed well in 2019 and before the coronavirus epidemic was upon us trading for the current year began in line with expectations.
"Before the onset of the coronavirus crisis Rotala was continuing to show the benefits of our stated acquisition strategy. At the time of writing this statement however the increasing seriousness of the coronavirus epidemic, and the UK Government's response to it, have put such considerations on hold.
“Clearly we have now entered extraordinary times which are beyond any current experience.
"Bus services are regarded by the Government as an essential service. Government has therefore taken steps, through specific direction provided to all arms of the state at both national and local level, to ensure that bus companies have sufficient cash flow to support the operations that they are running.
"The board has also taken action on many fronts to align the bus services being operated with local requirements, reduce commensurately the costs of operation and conserve cash.
"In order to prosper in these conditions, bus companies will need to possess strong and experienced management. I am glad to say that Rotala has such a management team which has consistently proved itself over the last decade.
"Furthermore we do not see any let up in the potential for divestment and acquisition activity in the bus market in the next few years.
"We believe we are very well positioned to take full advantage of all these developments. Therefore we are confident about the prospects of the group and excited about the possibility of expanding it considerably in the years ahead.”
