Rotala

www.rotalaplc.com TICKER: ROL     EXCHANGE: L

Rotala is a 'buy and build' player in the bus business. Its main strategy has been to focus on buying small and medium sized route operators, along with their contracts, bus fleets and routes, in and around Birmingham, Bristol and in the Birmingham-Bristol corridor. It also operates a number of private routes for large corporate clients, typically providing transport for staff members or customers. Growth has primarily been through acquisitions, mainly of small local route operators. The aim has been to build up critical mass of buses, depots, routes, and contracts. A crucial part of this process is the acquisition or development of depots that can act as a hub for a number of different bus operations and collections of routes. Depots also provide maintenance workshops and parking, with the economics such that costs can be recovered much more efficiently, and profits maximised, when depots are fully utilised. Operating out of an efficient centrally located depot can transform the economics and profitability of a business that might have been struggling to manage independently. The company has also been working with bus suppliers to develop more fuel-efficient vehicles.

LATEST REPORTS

 
The growth continues
Published: Dec 15 2008

'Buy and build' operator in the bus business

Focus on Birmingham-Bristol corridor

Future legislative changes could further improve prospects

Predictable cash flow and margins

Recent placing reduces gearing and interest costs

Conservative DCF model suggests present value of 73p / share
 
Critical mass achieved; profits now follow
Published: Jun 18 2008

Present focus is on Birmingham-Bristol corridor

Future legislative changes could further improve prospects

Predictable cash flow and margins

Conservative DCF model suggests present value of 82p/share, over 30% above current price

 
Buy and build operator in the bus business
Published: Oct 23 2007

Focus on Birmingham-Bristol corridor

Future legislative changes could have major impact

Predictable cash flow and margins, yet low cash flow multiple

Conservative DCF model suggests fair value 79p/share versus current 54.5p

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