Redde Northgate trades well following 'encouraging start' to FY
By Iain Gilbert
Date: Tuesday 27 Sep 2022
(Sharecast News) - Mobility solutions platform operator Redde Northgate said on Tuesday that it has continued to "trade well" following an "encouraging start to the year".
Redde Northgate stated that as expected the UK and Ireland market for new van supply remained "tight", while new car availability was showing early signs of improvement. In Spain, new van supply was performing "better than anticipated" and ongoing levels of new fleet was said to be supporting growth.
The FTSE 250-listed group said that while residual values were "softening gradually", in line with expectations, they were also still "significantly above" historic levels. Margin levels also remained "strong", with inflationary pressures being actively managed.
Claims and services, supported mainly in Redde, saw "a strong rebound" post-Covid, with little impact on traffic activity seen from fuel pricing or recessionary fears, while the group's car fleet also continued to grow to support the company's "wide range of services".
"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," said Redde ahead of its annual general meeting.
As of 0855 BST, Redde Northgate shares were up 1.82% at 302.40p.
Reporting by Iain Gilbert at Sharecast.com
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