Rotala Buys Wigan Coachways

[Y961 XBU]

http://announce.ft.com/Detail/?DocKey=1323-12919698-2NOSFQDTBR9K1QEPIDCBFQMFQV

4 August 2016

Rotala is pleased to announce the acquisition, from Rojay Services Limited, trading as Wigan Coachways, ("Wigan Coachways"), of its entire business, brand and 8-strong vehicle fleet for a cash consideration of £213,000. The Company estimates that the Wigan Coachways business has annual revenues of approximately £500,000 and that its vehicle fleet has a fair value of approximately £58,000. Rotala will not assume any other assets or liabilities of any materiality on acquisition. On this basis the Acquisition is expected to generate about £150,000 of positive goodwill on consolidation.

The acquisition is the second to be completed by the Company in the Lancashire area within the past month, following the acquisition of the fleet and business from Elite Minibus and Coach Services Limited ("Elite"), as announced on 12 July 2016. Like Elite, Wigan Coachways is a well-established operator of contracted services for local authorities and engages in some private hire operations. The Company will integrate the business of Wigan Coachways and its staff, into Rotala's existing depot in Atherton, Greater Manchester. This acquisition will broaden the range of services which Rotala is able to offer in this area of Lancashire and add to its geographical reach.

I am totally gutted to see this Operator go as the Manager (Roger Jarvis) Has ran this company to a very high standard for many years (Just like Blue Bus!) Roger was *Getting on a bit* So I assume he has sold the company so he can retire, Am going to miss seeing his Buses and Coaches around!

 

[WatcherZero]

Small operation to attract a big boys interest but the price seems like a bargain. Perhaps financial issues forced a sale.

Company has a fascinating history.

Wigan Coachways was formed in 2001, from the former Hursts of Wigan company which was started in the 1960s by Alan Hurst. In 2009 the Rump of Wigan Coachways was sold on to Rojay Services Ltd (based in Penwortham) following the collaspe of Fraser Eagle.

Rojay Services Ltd was renamed from Blue Bus and Coach Services Ltd. in 2005. Blue Bus and Coach Services Ltd was established in 1991. The bulk of company, which operated in Wigan, Bolton and Salford areas, was sold to Arriva in 2005.

In 2010 the operations was moved from Penwortham back to it's heart land in Wigan.

 

[Y961 XBU]

Someone said last night poor health had something to do with it but how true that is am not sure

 

[Bungle965]

http://announce.ft.com/Detail/?DocKey=1323-12919698-2NOSFQDTBR9K1QEPIDCBFQMFQV


I am totally gutted to see this Operator go as the Manager (Roger Jarvis) Has ran this company to a very high standard for many years (Just like Blue Bus!) Roger was *Getting on a bit* So I assume he has sold the company so he can retire, Am going to miss seeing his Buses and Coaches around!

Funny you should say that because during the Farnworth Blockade where they were contracted to run coaches/buses for Rail Replacement work they were apparently thrown off the contract because of driver rudeness amoungst other things.
Sam

 

[Shaw S Hunter]

http://announce.ft.com/Detail/?DocKey=1323-12919698-2NOSFQDTBR9K1QEPIDCBFQMFQV


I am totally gutted to see this Operator go as the Manager (Roger Jarvis) Has ran this company to a very high standard for many years (Just like Blue Bus!) Roger was *Getting on a bit* So I assume he has sold the company so he can retire, Am going to miss seeing his Buses and Coaches around!

You may have a high opinion of Roger Jarvis but I can assure you that plenty in the industry would disagree with you. Blue Bus started with a decidedly ropey fleet of vehicles that attracted the interest of Traffic Commissioner's staff from time to time. He also got rather upset when the incumbent operators he was competing with started to respond with the same tactics that he was using. And once he grew the operation beyond the original Horwich to Bolton services the standard of customer service soon mirrored that of all other operators ie there's only so many people-friendly individuals willing to work for poor wages.

Now if his state of health has led to him giving up his bus interests then I can only wish him the best for his retirement. But let's not pretend he was a saint of the bus industry!

 

[Robertj21a]

Small operation to attract a big boys interest but the price seems like a bargain. Perhaps financial issues forced a sale.

Company has a fascinating history.

You may well be right. I had thought that the price seemed quite high for such a small operation, with a fleet worth only £58,000. In today's world, it would be easy for any competitor to merely register over the same routes, so the 'goodwill' payment is, to me, notably high.

 

[Y961 XBU]

He did have a good reputation and his hire side shown that, just about every day most his coaches where on the road, I can't help but wonder had he not retired how much bigger the firm would of got

 

[WatcherZero]

You may well be right. I had thought that the price seemed quite high for such a small operation, with a fleet worth only £58,000. In today's world, it would be easy for any competitor to merely register over the same routes, so the 'goodwill' payment is, to me, notably high.

You would normally value an operation as a multiple of annual revenue depending on industry (taking in to account any debts/investment required), four or five years is quite common but in tech it may be as high as 25 or more. The annual revenue is 500,000 so the transaction valuation including assets and goodwill looks to be based on one years revenue and they are paying half that.

 

[Robertj21a]

You would normally value an operation as a multiple of annual revenue depending on industry (taking in to account any debts/investment required), four or five years is quite common but in tech it may be as high as 25 or more. The annual revenue is 500,000 so the transaction valuation including assets and goodwill looks to be based on one years revenue and they are paying half that.

Thanks. Yes, I'm aware how valuation vs revenue is often calculated. As I said, it just seemed quite high (to me) for this particular case.

 

[mbonwick]

just about every day most his coaches where on the road

That means nothing. The only way a coach company can survive is if the vast majority of the fleet is out on the road the vast majority of the time.

"If the wheels ain't turning, it ain't earning"

 

[Y961 XBU]

That means nothing. The only way a coach company can survive is if the vast majority of the fleet is out on the road the vast majority of the time.

"If the wheels ain't turning, it ain't earning"

That is true but Wigan Coachways fleet size where going up, Also better than other Coach Operators in the nearby area that always seems to have a lot of Coaches sat around doing nothing