Rotala wins news contracts with Transport for West Midlands

Bus operator Rotala has won a series of new contracts with Transport for the West Midlands (TfWM).

The contracts were won following TfWM's latest tender round for its supported bus contracts, which are due to commence operations on 23 April and will attract a subsidy from TfWM of around £866,000 a year.

Rotala said the passenger revenue associated with the contracts is estimated to be a further £740,000 a year. As a result, the total full-year revenue derived from these contracts will be around £1.6m.

The contracts are for periods of between one and five years, with the vast majority concentrated in the three to five year range. They will require the equivalent of a further 12 buses to be put on the road which are stipulated by the contracts to be at the Euro 5 emission standard.

Rotala said the mix of vehicles in its current fleet is sufficient to meet these new requirements and no new vehicles will be bought to service this additional business. The services will be operated from the existing Tividale and Redditch depots, increasing operational efficiency.

In anticipation of this expansion, Rotala has secured from the West Midlands Traffic Commissioner authorisation to increase its operating fleet in the West Midlands area from 228 to 275 vehicles.

“This increase places the company in a position where it can take immediate advantage of any further growth opportunities arising from the Buses Bill which is expected to receive the Royal Assent this summer.”

At 0819 GMT, the shares were up 5.5% to 53.80p.