Go-Ahead has sold its loss-making Go West Midlands (GWM) business to AIM-listed Rotala plc for £2 million. Announcing the sale to the Stock Market at 0800hrs this morning, Go-Ahead says the gross asset value of the business is approximately £1m and the net book value is nil.
Go-Ahead entered the West Midlands market in December 2005 when it bought Birmingham Coach Company for £2m, and People’s Express for 2.4m in March 2006.
Rotala also announced that Bob Dunn, 53, is appointed to its board as a non-executive director with immediate effect. His sons, Simon Dunn, remains Rotala Managing Director, and Scott Dunn has been retained by Rotala “to lead the integration of GWM.” Robert, Simon and Scott Dunn have committed to raise their investment in Rotala to £650,000.
GWM operates 134 buses, has 370 employees and three depots. In its last filed accounts, for the year ended 1 July 2006, GWM reported a £1.9m loss on a £13.4m turnover.