Rotala PLC Trading Statement (2747J)
April 09 2020 - 1:00AM
UK Regulatory
TIDMROL
RNS Number : 2747J
Rotala PLC
09 April 2020
RNS
9 April 2020
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain .
Rotala Plc
("Rotala" or the "Company" or the "Group")
Trading update
Rotala plc (AIM:ROL), a provider of transport solutions across
the UK, announces the following update on the impact of the
Coronavirus epidemic ("COVID-19") on the business of the Company,
the plans which have been put in place to ensure that the Company
is sustained for the duration of the current crisis and a summary
of how these events are likely to affect trading results for the
year ending 30 November 2020 ("FY 20").
COVID-19
The UK Government has designated bus operation to be an
essential service in the current crisis. Passenger numbers had
fallen steeply even before the very severe restrictions on travel
for all but key workers introduced on 23 March 2020. In this light,
the UK Government has taken steps, through specific direction
provided by the Cabinet Office to all arms of the State at both
national and local level and through the Department for Transport,
to ensure that bus companies have sufficient cash flow to support
the operations that they are running. These measures encompass a
specific Bus Service Support Grant and the maintenance of Bus
Services Operator's Grant, concessionary fares re-imbursements and
payments for contracted bus services broadly at their pre-crisis
levels.
The support being given in this manner to ensure that essential
transport services continue to run is clearly most welcome to the
Group.
Internally, the Board has taken a number of steps to align the
bus services being operated with local requirements, reduce
commensurately the costs of operation and conserve cash:
-- Most services have been re-scheduled to an enhanced Sunday-level timetable;
-- Driver rosters have been reduced accordingly;
-- Discretionary capital expenditure has been suspended;
-- The majority of Hire Purchase finance providers have declared
a three month moratorium on instalment payments;
-- Vehicle operating leases have been terminated where possible;
-- The Company will participate in the Coronavirus Job Retention
Scheme for staff who are not rostered to work at any one time;
-- The bankers to the Company, HSBC Bank plc, have increased the
overdraft facility of the Company from GBP3.5 million to GBP6.6
million.
The Directors believe that, as a result of all these measures,
the Company will be able to sustain its operations for the
foreseeable future, on the reduced scale outlined above, and will
be well placed to take advantage, when restrictions are lifted, of
the increased opportunities in the bus market that were evident
before the onset of the Coronavirus epidemic.
The Directors are very mindful of the demands being made on the
workforce of the Company in these circumstances. Drivers in
particular often work in conditions in which it is not possible to
observe the "social distancing" measures which the Government has
advised. The Directors are therefore grateful for the stoicism and
flexibility being shown by all employees in these times, and for
the active cooperation of all trade union representatives.
Final Dividend for 2019
In the normal course of events the Board would have proposed a
final dividend of 1.95 pence per share at the forthcoming Annual
General Meeting ("AGM"). However it is clearly incumbent upon the
directors to conserve cash in the current circumstances. Therefore
no final dividend will be proposed to the AGM. The Board will
consider at an appropriate time in the future whether it may be
possible to pay a special interim dividend to replace the abandoned
final dividend for 2019.
FY 20 outlook
As was highlighted in the Trading Update delivered on 27 January
2020, trading for the current year began in line with budget.
However the Coronavirus crisis has made redundant all the previous
guidance given to the market and any such statements must now be
disregarded. Given the current situation, and in the context of the
support measures being introduced by the UK Government outlined
above, it is not possible to state with any confidence what the
profit and loss account outturn for the year is likely to be and
the Company wishes to withdraw market guidance at this time.
Publication of results for the year ended 30 November 2019
As stated in the announcement dated 27 January 2020 it was the
original intention of the Company to publish its results for the
year ended 30 November 2019 in early April 2020. However in
response to the Coronavirus crisis the Financial Reporting Council
urged a moratorium on the release of all preliminary announcements
and the Company has naturally followed this guidance. The results
will now be published later this month and are expected to be in
line with the market expectations prior to the onset of the current
crisis.
Rotala Plc 0121 322 2222
John Gunn, Chairman
Simon Dunn, Chief Executive
Kim Taylor, Group Finance Director
Nominated Adviser & Broker:
Cenkos Securities plc 020 7397 8900
Stephen Keys/Callum Davidson (Corporate Finance)
Michael Johnson/Julian Morse (Corporate Broking)
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END
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