REG - Redde Northgate PLC - Share Buyback Programme

Redde NorthgateAnnouncement

28/07/2023 07:00

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RNS Number : 4845H  Redde Northgate PLC  28 July 2023

28 July 2023

This announcement contains inside information

 

REDDE NORTHGATE PLC

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

 

Share Buyback Programme

 

 

Redde Northgate plc (LSE:REDD), the leading integrated mobility solutions
platform providing services across the vehicle lifecycle, is pleased to
announce the commencement of a share buyback programme of up to £30 million
(the "Share Buyback Programme").

 

As set out in Redde Northgate plc's full year results announcement on 5 July,
the Group delivered record revenue and profits and strong levels of cash
generation in the year to 30 April 2023 ("FY2023"). The Group has continued to
enjoy robust demand in the first months of the current financial year and
there is good momentum across the business.

 

The Group is highly cash generative, with underlying cash generation of £191m
after investing in net fleet replacement. After financing and tax, in FY2023
the Group had cashflows of over £137m available for investment in growth and
return to shareholders, together with substantial headroom on its borrowing
facilities. The business returned over £105m in the form of dividends and
share buyback and invested over £130m in M&A and fleet growth, utilising
the strength of the balance sheet.  At FY2023 close, leverage was 1.5x net
debt to EBITDA, comfortably in the middle of the Group's targeted 1-2x range,
with 62% of the Group's debt fixed, including private placement at 1.3% with
maturities extending out to 2031 giving longer term rate protection. The
overall cost of borrowings at 30 April 2023 was 3.1%.

 

The Board continually reviews the Group's allocation of capital, balance sheet
position and strategic opportunities and believes that undertaking the Share
Buyback Programme can deliver meaningful value for shareholders whilst keeping
leverage at a prudent level. Purchases under the Share Buyback Programme will
be made from time to time subject to market conditions, share price and
trading.

 

As noted in connection with the Group's 2022 Share Buyback Programme, the
Board considers that the liquidity in its issued ordinary shares is
comparatively low. The Group has therefore agreed, in discussions with its
executing broker, Numis Securities Limited ("Numis") that on any given trading
day a buyback of shares instructed by the Company under the Share Buyback
Programme may exceed 25 per cent. of the average daily trading volume on each
trading platform on which Redde Northgate shares are traded. Where a buyback
of shares exceeds 25 per cent. of the average daily trading volume on any
trading platform, the Group will not fall within the exemption contained in
Article 5(1) UK MAR.

 

Notes:

 

The Share Buyback Programme will be conducted pursuant to an agreement between
the Company and Numis under which it is intended that Numis will purchase up
to a maximum of 23,957,523 ordinary shares in the Company on the Company's
behalf. Such purchases may also be conducted by Numis on an irrevocable basis
within certain pre-set parameters that are agreed with Numis from time to
time. The Share Buyback Programme will be conducted over the 12 months ending
28 July 2024.  Under the Share Buyback Programme the repurchased shares will
be held in treasury and/or cancelled. The purpose of the Share Buyback
Programme is to reduce the capital of the Company.

 

The Share Buyback Programme is in accordance with the Company's existing
general authority to purchase a maximum of 23,957,523 ordinary shares (which
is subject to renewal at the Company's 2023 AGM). Any purchase of the
Company's ordinary shares contemplated by this announcement will be carried
out on a regulated trading venue and be executed in accordance with: (i) the
Company's general authority to repurchase ordinary shares granted by its
shareholders on 27 September 2022 and any further approvals to repurchase
shares as may be granted by its shareholders from time to time; (ii) save as
detailed above, Market Abuse Regulation 596/2014 and the Commission Delegated
Regulation (EU) 2016/1052 (both as incorporated into UK domestic law by the
European Union (Withdrawal) Act 2018); and (iii) Chapter 12 of the Financial
Conduct Authority's Listing Rules.

Details of any ordinary shares repurchased will be notified to a Regulatory
Information Service by the Company following any repurchase as required by the
MAR and the Listing Rules of the FCA. The Company confirms that it currently
has no unpublished Inside Information.

The person responsible for making this announcement on behalf of the Company
is James Kerton, Company Secretary.

 

 

For further information contact:

 

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

 

Buchanan

David Rydell/Jamie Hooper/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 130,000 owned and leased vehicles, supporting over 700,000 managed
vehicles, with over 170 branches across the UK, Ireland and Spain and a
specialist team of over 7,000 employees.

 

Further information please visit the Company's website:

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

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