Rotala PLC Deal with Arriva Midlands North Limited
March 24 2017 - 3:01AM
RNS Non-Regulatory
TIDMROL
Rotala PLC
24 March 2017
24 March 2017
RNS Reach
Rotala plc
("Rotala" or "the Company" or "the Group")
Transfer of business and Novation of certain contracts
Rotala is pleased to announce that, through its subsidiary
operating in the West Midlands, Diamond Bus Limited ("Diamond"), it
has agreed a deal with Arriva Midlands North Limited ("Arriva"), a
subsidiary of Arriva plc, to take on the majority of the Arriva
Wednesfield operation.
The deal agreed will see Diamond accept, with effect from 23
April 2017, nine vehicles from Arriva Wednesfield together with
those Transport for West Midlands ("TfWM") contracts which are
presently operated by Arriva Wednesfield with the vehicles being
transferred. TfWM has consented to the novation of the underlying
subsidised bus contracts. The contracts all expire on 21 October
2017 and the estimated revenue for the remaining six months of the
contracts until expiry is GBP600,000.
Arriva will retain operation of the 10 A/B and the 335 services,
which will transfer to other Arriva depots in the Midlands, and the
staff to operate them. Diamond will offer employment to every other
member of Arriva Wednesfield staff.
For further information please contact:
Rotala Plc 0121 322 2222
John Gunn, Chairman
Simon Dunn, Chief Executive
Officer
Kim Taylor, Group Finance
Director
Nominated Adviser & Broker:
Cenkos Securities plc 020 7397 8900
Stephen Keys/Callum Davidson
(Corporate Finance)
Michael Johnson/Julian Morse
(Corporate Broking)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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