REG-Redde Plc: Contract Update

Redde NorthgateAnnouncement

08/03/2019 12:20

• News Release •

Redde plc

Issue Date: 08 March 2019

Contract Update

The Board of Redde (“Redde” or the “Group”) announces that, following
an extensive period of contract tendering, the Company was informed today that
it has not been successful in securing the renewal of a hire and repair
contract with a large insurer. The existing contract runs through into the
next financial year and there will be no impact on adjusted operating profits
in the current financial year ending 30 June 2019.

Taking into account the loss of this contract, other contract wins and the
effect of mitigating actions, the Board expects that the impact on existing
consensus market expectations for the financial year ending 30 June 2020 would
be a net reduction in sales of approximately £111.9m (representing 18.2 per
cent. of consensus expectations) and a reduction in adjusted operating profits
of approximately £4.7m (representing 8.7 per cent. of consensus
expectations). The effect on working capital in the financial year ending 30
June 2020 is anticipated to be positive.

After 10 years of partnership, the Board is obviously disappointed not to have
secured the renewal of this contract. However, as announced in the interim
results on 27 February 2019, the pipeline of new business is nevertheless
encouraging with a number of live prospects.

Commenting on the news Martin Ward, Chief Executive Officer, said:

“We are obviously disappointed not to have retained this contract. We will
however concentrate our efforts on continuing to support our existing partners
as well as winning new business to mitigate the effect on earnings in the next
financial year.”

The information contained within the announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via
Regulatory Information Service ("RIS"), this inside information is now
considered to be in the public domain.

 For further information, contact:  

   

 Redde plc                                                   Tel: 01225 321134   
 Martin Ward, Chief Executive Officer                                            
 Stephen Oakley, Chief Financial Officer                                         
 Cenkos Securities plc (Nominated Adviser and Joint Broker)  Tel: 020 7397 8900  
 Mark Connelly                                                                   
 Giles Balleny                                                                   
 Harry Hargreaves                                                                
 N+1 Singer Capital Markets Limited (Joint Broker)           Tel: 0207 496 3000  
 Mark Taylor                                                                     
 Square1 Consulting                                          Tel: 020 7929 5599  
 David Bick                                                                      

Notes for editors

About Redde plc:

Founded in 1992 and working predominantly with insurance companies, insurance
brokers and prestige motor dealerships, the Group provides a range of accident
management and legal services. The Group also deals directly with large
national fleets providing incident management and mobility continuity and the
Group's activities also encompass a range of legal services designed to assist
claimant parties in partnership with leading insurance companies, brokers and
other bodies.

The Group is one of the market leaders in its fields of business; it delivers
accident management solutions to motorists ensuring that they remain mobile
until their own vehicles are repaired or until they are put in a position to
obtain a replacement and it provides legal services ensuring that they are
properly compensated for their injuries and losses. Legal services also
include wills and probate, family law and employment law advice.

The name Redde is associated, in Latin, with the concept of restoration.



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