Rotala - Rotala (LON:ROL)

Profile Summary

Rotala Plc operates commercial and subsidized bus routes for businesses, local authorities, the public and private individuals. The Company is engaged in the provision of bus services. The Company offers contracted, commercial and charter services. Its contracted operations service two types of customers, including individual organizations and local authorities. The Company offers commercial services in the West Midlands, the South West and the North West. The Company also provides a transport management service to a range of customers. Typically this covers business or service disruption, and event management. The Company operates approximately 600 vehicles. The Company's registered bus services carry over 29,000,000 passengers every year. In addition, it operates a range of corporate transport contracts and private bus networks. The Company's operations are across areas in the United Kingdom, including West Midlands, Worcestershire, South West, North West and London.

  • Market Capitalisation £14.5m
  • Enterprise Value £79m
  • Shareprice 29p
  • Book value per share 61p (down from 73p a year earlier, Nov 30th 2020)

I started looking at companies in the transportation sector which had not yet shown signs of recovery post Covid. I had also looked at Air Partner (LON:AIR) which is still one I want to dig deeper into. However, Rotala (LON:ROL) caught my attention for the following reasons:

  1. Still near all time lows - no real re-rating to account for lockdown opening up.
  2. Director dealings since Jan 2020 - lots of buys around the current price since Jan 2020 up to May 2021.
  3. Positives in the FY results for Nov 30th 2020, reported May 6th 2021.
  4. May 28th AGM statement - “passenger volumes stand at about 65% of pre-pandemic levels. We expect a steady upward trend in passenger volumes to continue as travel and social distancing restrictions are further relaxed."
  5. Shareprice was over 50p before covid impact.

Background and Analysis

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Sales growth and CAGR rated 1st and 2nd respectively out of 16 in the passenger transportation market.

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I like the fact insiders hold a lot of shares. I am also a big fan of Marlborough Nano-cap, which is a good sign as far as I am concerned.

What really caught my attention was the director dealings.

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You can see that insiders have been buying since the start of…

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