Rotala Plc (ROL.L) Announced the sale of its freehold depot at Avonmouth, Bristol to Umberdata Avonmouth Limited, a property investment company, for a cash consideration of �2.09 million.
The consideration, after transaction costs, approximates to the net book value of the assets.
Of the net proceeds, approximately �1 million will be used to improve the Group's balance sheet through a reduction in its bank borrowings and the remaining cash will be available for future re-investment or potential acquisitions.
Also, the company provided the following update on its diesel fuel hedging requirements.
Currently the annual fuel requirement of the Group is approximately 11.5 million litres.
Given the recent volatility of fuel prices, which seems likely to continue, the board has been monitoring diesel price trends closely.
Taking advantage of the recent weakness of crude oil prices, the board has taken out a number of fuel hedge contracts, using diesel derivatives, for the year ending 30 November 2019.
These hedge contracts are expected to cover approximately 52% of the Group's fuel requirements for that year, at an average price of 101p per litre.