(ROL) Rotala

LONDON (Thomson Financial) - Transport company Rotala PLC said it has acquired Ludlows of Halesowen Ltd, which operates 21 buses in the Halesowen district of Birmingham, for 850,000 stg in cash.

The company expects the acquisition to add to its earnings immediately and to improve the ability of the enlarged group to tender for and operate subsidised routes in Worcestershire and Warwickshire.

The acquisition is being funded in part through the proceeds of the placing announced on June 18, Rotala added.

Ludlows reported a pretax loss of 24,000 stg for the financial year ending March 31, 2006 with sales of 1.5 mln stg. Its net assets stood at 308,000 stg at March 31, 2006. TFN.newsdesk@thomson.com faj/cm2

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