Redde Northgate boosts full-year outlook, shares spark

6th Dec 2023 10:47

(Sharecast News) - Redde Northgate boosted its full-year outlook on Wednesday, following a solid first half.

The mobility business, which specialises in commercial vehicles, reported revenues of £911.3m in the six months to 31 October, a 30.9% jump, while earnings before interest and tax rose 1.6% at £113.3m.

Pre-tax profits eased 4.4% to £97.4m, on higher finance costs.

On an underlying basis, which strips out vehicle sales revenues and exceptional items, revenues rose 16.9% to £733.8m while pre-tax profits jumped 18.3% at £99.1m.

Martin Ward, chief executive, said the first half had been a "strong" trading period, boosted by new contract wins.

He continued: "With a strong prospect pipeline, and a large proportion of our revenues underpinned by multi-year service contracts, we see the quality of earnings being a standout feature of the business.

"The board is confident on the outlook for the second half and now expects to be delivering earnings modestly ahead of market consensus on a full-year basis."

As at 1030 GMT, shares in Redde Northgate were up 5% at 379p.

Redde Northgate - which last month was rumoured to be considering a £1.4bn takeover offer for bicycle and car parts retailer Halfords Group - has around 130,000 vehicles in its fleet in the UK and Spain, 1% lower than April 2023.