Bus group Rotala targets more acquisitions
Tividale-based bus group Rotala saw growth in both revenue and profits in the six months to the end of May and is set to buy more rivals to continue its growth.
The business, which includes Diamond, which runs services in the West Midlands, had a 14 per cent rise in revenue to £32.7 million and pre-tax profits rose 17 per cent to £1.57m.
Chairman John Gunn said the company has continued to make good progress in the first half of 2018, building on the benefits derived from the three acquisitions made in 2017 and the acquisition of Birmingham-based Central Buses in February.
The commercial services division's revenue rose by 19 per cent to £20.1m.
The bulk of the increase in revenues in this division has come from the Hotel Hoppa acquisition which was made late in 2017.
Overall the division has increased in size by about 20 per cent since 2015
Rotala bought Central Buses from CEN Group, including a 30-strong vehicle fleet, for £1.95m.
Mr Gunn said: "Rotala has a proven track record of steady organic growth supplemented by sensibly priced acquisitions. The recent acquisition of Central Buses conforms to this strategy. We continue to be actively engaged in hunting out potential acquisitions and, with the backing of our new bankers, possess considerable firepower which can be used to attain these targets.
"In our assessment there will continue to be much divestment and acquisition activity in the bus market in the next few years. We undoubtedly have the management skills and the resources to capitalise on these opportunities. This makes us confident about the prospects of the group in 2018 and beyond."
