Sale of Property
16/06/2022 09:34
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220616:nRSP1297Pa&default-theme=true
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
£350,000.
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 £310,000.
Therefore, this sale, net of the costs of disposal of £17,000, will result in
a profit of approximately £643,000. 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
£333,000 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END DISFZGMVRVFGZZG