Rotala PLC (LON:ROL) has unveiled a number of cost saving measures to support its business as the transport services firm prepared to whether the coronavirus pandemic.
In a trading update, the company said most of its services have been rescheduled to an enhance Sunday-level timetable, with driver rosters reduced accordingly, while discretionary capital expenditure has been suspended.
Rotala also said the majority of hire purchase providers have declared a three month moratorium on instalment payments, while vehicle hiring leases have been terminated where possible.
The group added that it will participate in the UK government’s coronavirus job retention scheme for staff that are not rostered to work at any one time, while the firm’s bankers, HSBC, have increased its overdraft facility to £6.6mln from £3.5mln.
“The directors believe that, as a result of all these measures, the company will be able to sustain its operations for the foreseeable future, on the reduced scale outlined above, and will be well placed to take advantage, when restrictions are lifted, of the increased opportunities in the bus market that were evident before the onset of the coronavirus epidemic”, Rotala said.
Looking ahead, the company said in the current circumstances it was “not possible to state with any confidence what the profit and loss account outturn for the year is likely to be”, and withdrew its market guidance.
Rotala also said it will not propose a final dividend at its AGM in order to conserve cash, however, it will consider at an appropriate time in the future whether to pay a special interim dividend to replace the suspended payment.