Profits recover for bus group Rotala
Bus group Rotala, which has its headquarters in Tividale and operates Diamond Bus, saw profits recover in the six months to the end of May.
Rotala, which said passenger numbers were recovering slowly but steadily, achieved pre-tax profit of £2.1 million from £800,000 a year earlier.
Chief executive Simon Dunn said: "During the Covid-19 pandemic, we decided to focus on cash conservation and debt reduction with the objective of emerging from the pandemic with a robust balance sheet, fit for renewed commercial operation. We believe that we have achieved these objectives.
"As the bus industry recovers from the effects of Covid-19, bus networks are being reviewed and rationalised and this is causing a good deal of turbulence in the industry which should bring a continuing flow of acquisition opportunities to Rotala, much like the acquisitions made in the first half of 2021-2022. We are well placed to take advantage of these opportunities as they arise. "
The Rotala board expects passenger numbers to continue to grow slowly but steadily for the remainder of the financial year, but not to recover fully to pre-pandemic levels until 2023.
Commercial revenue for the half year was up from £12.4m a year earlier to £24.7m, but overall revenue was down from £47.3m to £39m as grants and subsidies reduced from £27m to £4.8m as passenger numbers recovered and bus service levels ceased to be mandated by the Government.
In the half year Rotala made two small acquisitions in the West Midlands. The first was the bus business of Claribel Coaches which operates in the eastern part of Birmingham. The other was the bus business of Johnsons (Henley) in Warwickshire and the southern West Midlands.
