Bus manufacturer Optare says that bid talks are continuing.
The bid approach was announced nearly six months ago. The board believes that entering into a partnership is key to the prosperity of the business.
In May, Optare won a £13m order for 66 hybrid buses from the Greater Manchester Integrated Transport Authority. GMITA will receive a £3m grant from the Green Bus Fund. Optare also has the repair and maintenance contract worth up to £1.9m. The total order book was worth around £27m after this maintenance contract.
Optare reported revenues of £79.8m and an underlying loss of £5.13m in 2009. The workforce has been halved. Exceptional costs of £6.9m were on top of the underlying loss. They include restructuring, warranty, onerous contract and impairment costs.
Net debt was £7.7m at the end of 2009 and Optare plans to sell its Rotherham site, valued at £2.4m in the balance sheet. A £6.33m cash outflow during 2009 was offset by share issues raising £8.06m.
At 5.25p a share, down 0.375p, Optare is valued at £14.1m.
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