Rotala’s ‘acceptable performance’
According to Rotala’s latest trading update for the year ending 30 November 2013, the company’s pre-tax profit was modestly ahead of 2012 and was broadly in line with management expectations. Operating cash flow was strong, whilst net debt increased slightly to £19.9m, this was after spending £3.8m on acquisitions. The ratio of net debt to EBITDA, which stood at just under 3 times at the end of the year, is expected to decrease to about 2.5 times for 2014. Trading for the current year has begun in line with budget.
The operator has taken advantage of stable oil prices and the strength of the Pound Sterling to extend the fixes on the price of fuel to approximately 95% of the company’s anticipated requirements out to April 2015 and 70% of its requirements in the remainder of 2015. The price achieved is a little below that used for current budgets and forecasts and gives management considerable certainty over one of its major costs for the next two years.