FTSE 250-listed Redde Northgate ups its full-year outlook

Redde Northgate shares accelerate as FTSE 250-listed commercial vehicle rental group lifts earnings forecast

  • Redde Northgate found itself at the top of the FTSE 250 index riser list today 

Commercial vehicle rental provider Redde Northgate expects its full-year earnings to come in better than expected, a surprise update has revealed.

Redde Northgate shares jumped today and were up 6.72 per cent or 24.50p to 389.00p by midday, having slipped around 3 per cent in the past year. 

Following its unscheduled trading update, the group found itself at the top of the FTSE 250 riser pack.

Upbeat: Redde Northgate expects its full-year earnings to come in better than expected

The company now expects its full-year profit for the year to the end of April to reach the top end of market estimates around the £165million mark. Previous forecasts hovered around £155million. 

The company said it enjoyed growth from major insurance contracts launched over the past year.

Martin Ward, chief executive of Redde Northgate, said: ‘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.’

The group added it had seen ‘strong and resilient demand’ for services across both vehicle rental and accident management.’

It said: ‘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.’ 

The group was formed via a merger in 2021 between vehicle hire firm Northgate and accident management specialist Redde.

It provides ‘whole lifecycle’ services to car and van rental customers, from repair and maintenance to insurance, legal services and advising on the electric vehicle transition.

It has a 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 team of over 6,700 staff. 

***
Read more at DailyMail.co.uk