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Rotala expects to post small annual loss
StockMarketWire.com
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Bus company Rotala said it expected to post a small annual loss, even after a rise in sales.
Pre-tax losses for the year through November were seen at around £1.0 million, swinging from a year-on-year profit of £3.6 million.
Revenue would rise 13% to about £76.0 million.
'Since mid-March 2020, the company has concentrated on aligning bus services with local requirements, reducing the costs of operation where possible and conserving cash,' Rotala said.
'As previously announced, the group's cash flow ... has been positive since the beginning of May 2020 and is expected to remain so for the foreseeable future.'
Passenger numbers had risen steadily throughout the summer of 2020, reaching a peak in early October of about 60% of the levels seen in the same period of 2019, before falling back again to about 45% in the November 2020 lockdown period.
'Early indications from the latest lockdown period put in place by the UK government on 4 January are that passenger numbers have fallen to about 25% of normal levels, though it remains to be seen if they stabilise at this point,' Rotala said.
Government support for the bus sector, however, would continue to offset pressure on sales, it added.
The government measures had been designed to ensure that the company made neither a profit nor a loss at the normalised level for as long as the package of measures was in place.
'Government support under the CBSSG Restart scheme continues to enable us to provide the bus services needed by key workers and the general public to go about their essential business,' chief executive Simon Dunn said.
'The government's vaccination programme promises to provide the means to exit from the Covid-19 restrictions later in the year.'
'In the view of the board, the Covid-19 crisis has in no way halted the winds of change sweeping through the bus industry.'
'Therefore, once the crisis has passed, the board expects further growth opportunities to arise, both organic and by acquisition, and is confident that the group will be well placed to take advantage of such opportunities.'
At 9:08am: (LON:ROL) Rotala PLC share price was 0p at 22.5p
Story provided by StockMarketWire.com
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