REG - Redde Northgate PLC - AGM Statement

Redde NorthgateAnnouncement

27/09/2022 07:00

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RNS Number : 7037A  Redde Northgate PLC  27 September 2022

REDDE NORTHGATE PLC

("Redde Northgate" or the "Group" or the "Company")

27 September 2022

AGM Statement

 

Encouraging start to FY2023

 

Redde Northgate plc (LSE:REDD), the leading integrated mobility solutions
platform providing services across the vehicle lifecycle, will hold its Annual
General Meeting at 10.30 a.m. today at the offices of Bryan Cave Leighton
Paisner LLP, Governor's House, 5 Laurence Pountney Hill, London, EC4R 0BR.

 

At the meeting the following statement will be made:

 

Current Trading

Following the encouraging start to the year, as previously announced, the
Group has continued to trade well. As expected the UK&I market for new van
supply remains tight, while new car availability is showing early signs of
improvement. In Spain, new van supply is performing better than anticipated
and the ongoing levels of new fleet are supporting growth. Residual values are
softening gradually in line with expectations, but remain significantly above
historic levels. Margin levels have remained strong, with inflationary
pressures being actively managed.

 

Claims and Services, supported mainly in Redde, have seen a strong rebound
post-Covid with little impact on traffic activity seen from fuel pricing or
recessionary fears. The car fleet continues to grow to support the wide range
of services offered by the business with the previously announced contract
wins reaching implementation in the current year.

 

Since the year-end we have completed the acquisition of Blakedale, a leading
UK supplier of specialist traffic management vehicles to highways
infrastructure build and maintenance operators, which adds over 330 vehicles
to the fleet and brings further capabilities and cross-sell opportunities into
the Northgate UK&I customer base.

Whilst mindful of economic uncertainty, the Board remains confident that it
has the right strategy to deliver long term sustainable value. The Group is
supported by its enhanced mobility solutions platform, the structural growth
in outsourcing, a diverse revenue stream and a broad spread of customers
providing the business with quality, repeatable long-term contract-backed
earnings.

 

Shareholder returns

On 10 August, the Company announced an extension of the Share Buyback
Programme by a further £30 million, up to a maximum aggregate consideration
of £60 million. As at close of business on 26 September 2022, we had
purchased approximately 10.9m ordinary shares at a total consideration of
c.£39.5 million. Leverage remains well within our stated aim of 1-2x,
supported by our refinancing in October 2021 with debt maturities extended up
to 10 years.

Shareholders are being asked today to approve a final dividend of 15.0
pence per share, which will be paid on 30 September 2022, to those
shareholders on the register at close of business on 2 September 2022. This
dividend, if approved, will result in a total ordinary dividend payable in
respect of the year ended 30 April 2022 of 21.0 pence per share.

 

 

 

 

Interim results and Sustainability Report

The Group's next scheduled trading update will be its interim results for the
six months ended 31 October 2022 expected on 7 December 2022.

 

On 1 September, the Group published its inaugural Sustainability Report, which
represents an important milestone and our commitment to share our efforts,
aims and ambitions in running a responsible business.

https://reddenorthgate.co.uk/media/2929/rn-sustainability-report-fy-2022.pdf
(https://reddenorthgate.co.uk/media/2929/rn-sustainability-report-fy-2022.pdf)

 

-Ends-

 

For further information contact:

Ross Hawley, Head of Investor Relations
 
+44 (0) 204 566 7090

Buchanan

David Rydell/Jamie Hooper/Hannah Ratcliff/ Verity Parker
 
+44 (0) 207 466 5000

Notes to Editors:

Redde Northgate is the leading integrated mobility solutions platform
providing services across the vehicle lifecycle. The Company offers integrated
mobility solutions to businesses, fleet operators, insurers, OEMs and other
customers across the following key areas: vehicle rental, vehicle data,
accident management, vehicle repairs, fleet management, service and
maintenance, vehicle ancillary services and vehicle sales.

The Company's core purpose is to keep its customers mobile, whether through
meeting their regular mobility needs or by servicing and supporting them when
unforeseen events occur. With its considerable scale and reach, Redde
Northgate's mission is to offer a market-leading customer proposition and
drive enhanced returns for shareholders by creating value through sustainable
compounding growth.  The Group aims to achieve this through the delivery of
its strategic framework of Focus, Drive and Broaden.

Redde Northgate services its customers through a network and diversified fleet
of over 126,000 owned and leased vehicles, supporting over 600,000 managed
vehicles, with around 175 branches across the UK, Ireland and Spain and a
specialist team of over 6,700 employees.

Further information regarding Redde Northgate plc can be found on the
Company's website:

www.reddenorthgate.com (http://www.reddenorthgate.com/)

 

 

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