Ticker: ROL Exchange: L

Rotala is a 'buy and build' player in the bus business. Its main strategy has been to focus on buying small and medium sized route operators, along with their contracts, bus fleets and routes, in and around Birmingham, Bristol and in the Birmingham-Bristol corridor. It also operates a number of private routes for large corporate clients, typically providing transport for staff members or customers. Growth has primarily been through acquisitions, mainly of small local route operators. The aim has been to build up critical mass of buses, depots, routes, and contracts. A crucial part of this process is the acquisition or development of depots that can act as a hub for a number of different bus operations and collections of routes. Depots also provide maintenance workshops and parking, with the economics such that costs can be recovered much more efficiently, and profits maximised, when depots are fully utilised. Operating out of an efficient centrally located depot can transform the economics and profitability of a business that might have been struggling to manage independently. The company has also been working with bus suppliers to develop more fuel-efficient vehicles.

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