Redde Northgate lifts FY expectations as interim profits rise

7th Dec 2022 07:48

(Sharecast News) - Commercial vehicle rental provider Redde Northgate said on Wednesday that full-year results would be "modestly above" market views, as it posted a rise in interim profit and revenue, underpinned by fleet growth and new contract wins.

In the six months to the end of October, group revenue rose 14% to £696.3m, reflecting strong traffic and accident management volumes, fleet growth, pricing increases, and continued robust residual values, it said.

At the same time, reported pre-tax profit was 42% higher versus the same period a year earlier at £101.9m, while underlying pre-tax profit ticked up 6% to £83.7m. Redde said a strong operational performance was partially offset by lower disposal profits and higher interest.

The company said demand for its services continues to be robust across geographies, along with continuing strength in residual values.

"These factors underpin our confidence for the full year which is expected to be modestly above market expectations," it said.

"While the board is mindful of the ongoing macro-economic environment and current LCV supply, it remains confident that our integrated mobility solutions platform will continue to create sustainable shareholder value."