Rotala PLC Sale of Property (1297P)
June 16 2022 - 4:34AM
UK Regulatory
TIDMROL
RNS Number : 1297P
Rotala PLC
16 June 2022
RNS
16 June 2022
Rotala Plc
("Rotala", the "Company" or the "Group")
Sale of Property
The Company is pleased to announce the sale of a surplus
leasehold property in the Queslett area of northern Birmingham for
a gross cash consideration of GBP350,000.
In an acquisition made in 2006, the Group acquired a leasehold
bus depot in Queslett, which, because of its proximity to another
depot of the Group, was never actually used by Rotala and has been
sub-let for most of the intervening period. The depot has now been
sold back to the freeholder, Birmingham City Council.
Under IFRS 16, the lease commitment represented by the stream of
rental payments on such a lease is capitalised and shown as a lease
liability on the Group's balance sheet. Thus, at the date of sale
of the property, the Group was carrying a liability on its balance
sheet, net of the book value of the leasehold asset, of
GBP310,000.
Therefore, this sale, net of the costs of disposal of GBP17,000,
will result in a profit of approximately GBP643,000. There is no
taxation associated with this disposal. This profit will be treated
as an exceptional item in the Group's profit and loss account for
H1 FY22. The net cash proceeds of sale of GBP333,000 will be used
to reduce the Group's borrowings.
The normalised profit before tax of the Group for H1 2022 is
expected to show a break even position.
The Group's results for H1 2022 are expected to be published in
late July 2022.
Rotala Plc 0121 322 2222
John Gunn, Chairman
Simon Dunn, Chief Executive
Kim Taylor, Group Finance Director
Shore Capital 020 7408 4090
Tom Griffiths / James Thomas / Michael McGloin (Corporate Advisory)
Henry Willcocks (Corporate Broking)
About the business
Rotala provides a range of transport solutions, ranging from
local bus services under contract to local authorities, through to
commercial bus routes. Rotala has operations at Heathrow Airport,
in the West Midlands and in the North West. Operating companies are
Diamond Bus Ltd, Diamond Bus (North West) Ltd, Hallmark Connections
Ltd and Preston Bus Ltd.
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END
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