Rotala commences NatEx legal action

Rotala is taking legal action against National Express over what it sees as a breach of contract after two coach routes were removed from it..

Announcing its final results, the AIM-listed PLC says that its revenues in contracted services overall fell by 8.5% to 20.6m (2012: 22.5 million).

Says Rotala Chairman John Gunn: “The cause of almost all of this reduction in revenue was the loss in April 2013 of the two route diagrams we operated up to that time for National Express Limited (NEL).

“In our view NEL breached their contract with us by their actions. Therefore we have commenced legal proceedings against NEL to recover our losses. This case is expected to come to trial in the last quarter of 2014.

“In these accounts we have written off as an exceptional item 364,000 of our losses, which form part of our claim against NEL.”

In a statement National Express said: “We will continue to defend our position but as this is an ongoing legal issue we cannot comment further.”

Overall Rotala reports that although turnover fell to 53.3m (2012: 54.8m) for the full year to 30 November 2013, its gross profit margin rose to 17.1% (16.5%), while pre-tax profit was up by 5% to 2.19m (2.09m).

Primarily a bus operator, Rotala is the market leader in Preston and the second largest in Bristol, Bath and the West Midlands.