The Middle Ground

Take-overs continue, with smaller firms falling by the wayside, with news of further consolidation in the West Midlands bus sector. AIM-listed Rotala has added North Birmingham Busways of Erdington and Ludlow’s of Halesowen to its Central Connect operations, of which the former Zak’s was the bedrock, purchased in December 2006.

For £850,000, Rotala gets 21-vehicle Ludlow’s, which operates a number of services in the Halesowen, West Bromwich and Bromsgrove areas, some of which are up to every 20- or 30-minutes.

28-vehicle North Birmingham Busways was purchased for £860,000. It’s handful of services in Erdington, Streetley, Birmingham and Sutton Coldfield also operate at similar frequencies.

Also added to Rotala’s growing portfolio for £600,000 is a substantial part – 68 vehicles – of South Gloucestershire Bus & Coach, north of Bristol.

On the debit side, however, Wiltax took over Rotala’s Surrey Connect business 4 June 2007. Wiltax promptly sold out lock stock to AIM-listed Tellings Golden Miller that very day, bringing TGM back into mainstream bus operations.

Rotala is now very much a mixed bag. After acquiring what was at the time the 130-PSV plus 65 chauffeur-driven cars Flights Hallmark in 2005, its main business was centred upon airport hotel & car-park shuttle, staff & aircrew transport; reuniting diverted air passengers & crew; and NEC car park services, from sites at Birmingham, Bristol and Manchester plus at Heathrow, Gatwick, East Midlands, Glasgow and Edinburgh airports.

Acquisitive Rotala, however, sees a bright future in occupying the middle ground in the urban bus industry, between independents and the big five/six. Purchases in this sector may well continue to be competitive, though, with the likes of Veolia also continually looking to snatch suitable smaller operations.

Meanwhile, as the image left shows, Rotala's web page seems to suggest that the company has its sights no less than on First Group – Rotala shows a First Volvo B7LA/Wright Eclipse Fusion articulated bus (new to First Hampshire).