Rotala turns small profit as some bus passengers return

Rotala

63.00p

16:55 16/01/24

0.00%

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Bus operator Rotala reported a “small” profit after tax of £0.81m in its first half in an update on Tuesday, swinging from a loss of £3.8m a year earlier.

The AIM-traded firm said trading in the six-month period ended 31 May was underpinned by subsidies from the Department for Transport, with passenger loadings now standing at around 65% of pre-Covid-19 levels.

It said it was net cash flow positive in the first half at £0.79m, compared to its cash flow negative state of £2.1m in the first six months of the 2020 financial year.

“The government's new National Bus Strategy promises large-scale fresh investment in bus transport,” said chief executive officer Simon Dunn on the company’s outlook, noting that the UK government was set to provide £3bn in new funding to the sector in the coming years.

“This must be beneficial for the bus industry,” he said.

“During the Covid-19 pandemic, Rotala has deliberately concentrated on improving its business efficiency, software systems and use of working capital, [and] as a result, I believe that Rotala is very well placed to play its full part in a revitalised bus industry.”

At 1355 BST, shares in Rotala were up 3.46% at 26.9p.