REG - Redde Northgate PLC - Trading Update

Redde NorthgateAnnouncement

19/04/2023 07:00

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RNS Number : 6663W  Redde Northgate PLC  19 April 2023

This announcement contains inside
information
19 April 2023

 

REDDE NORTHGATE PLC

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

Trading Update

Continued strong performance across the business,

with FY23 adjusted PBT expected to be around the top end of consensus range(1)

Redde Northgate plc (LSE:REDD), the leading integrated mobility solutions
platform providing services across the vehicle lifecycle, today announces a
trading update for the year ending 30 April 2023, ahead of its full year
results scheduled for 5 July 2023.

The Group continues to perform well and is trading ahead of expectations, with
strong and resilient demand from customers for services across both vehicle
rental and accident management, including growth from major insurance
contracts launched over the past 12 months.

Constraints in UK&I van supply continued for the majority of the year, but
more recently there has been better visibility of future supply starting to
improve, as has already been seen in the car market.  In Spain, new vehicle
supply for both vans and cars is already close to normal levels.  Residual
values have remained strong across both markets, positively impacting disposal
profits.

Traffic volumes and incidents are also near 'normal' levels and the number of
transactions across the integrated mobility platform is strong, helped by the
new contract wins implemented in the year.  The Group has a diverse and
resilient customer and partner base with multi-year service contracts in
place, representing a high-quality and recurring revenue stream with
opportunities for further growth.

As a result of this strong performance, the Board believes the outturn for
FY23 adjusted PBT is now likely to be ahead of market consensus and around the
top end of consensus range(1).

Martin Ward, CEO of Redde Northgate, commented:

"The strategy of delivering an integrated mobility platform has enabled us to
provide a unique offering to a wide range of partners and customers and is
bearing fruit. This is reflected in the strength of performance across the
business, despite ongoing supply chain challenges and direct inflation seen
most notably in areas such as vehicle repairs.

As we look forward, the Group is performing at record levels, there is more
interest in our platform than ever before and we have a strong base from which
to make strategic progress in the coming year."

((1))Company compiled consensus as set out on Redde Northgate's website of
adjusted PBT of £155.2m, range £149.6 - £164.4m, from coverage analysts who
have published in the past 6 months.

 

 

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

 

This announcement is made on behalf of Redde Northgate by James Kerton,
Company Secretary, Redde Northgate plc.

 

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 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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