Rotala reports losses in 2020

Diamond Bus parent company Rotala plc has issued a profit warning for 2020, with losses of £1m against 2019 profits of £3.6m.

“Bus operation continues to be regarded by the UK Government as an essential service,” said the company. “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.

“As previously announced, the Group’s cash flow, both at EBITDA level and net of all debt, interest and other payments, has been positive since the beginning of May 2020 and is expected to remain so for the foreseeable future.”

Rotala reports net debt excluding hire purchase declining, and says it does not expect to take government-backed coronavirus loans: “Drawings on the Company’s GBP6.6 million overdraft facility fluctuate according to the precise timing of the receipt of instalments in the Government grant package described below. As at 30 November 2020, the Company had drawn GBP3.3 million (31 May 2020: GBP4.1 million) of this overdraft facility.

“The amounts due to the Company at 30 November 2020 under the Government grant package exceeded the Company’s drawings on its overdraft facility at this date. As previously announced, and as a consequence of these factors, the Company has not needed to take up any of the options available under the various Government-supported loan schemes and does not currently foresee any requirement to do so.”

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