PUNT OF THE WEEK: Redde Northgate offers services for commercial vehicle fleets
Redde Northgate offers services for commercial vehicle fleets
What is it?
Formed n a merger in February, Redde Northgate offers services for commercial vehicle fleets.
The Northgate arm allows businesses to hire vans and cars, while the Redde branch works with insurers, motor dealers and firms which own fleets of cars to provide hire, repair and legal services.
What’s the latest?
The newly-combined company can now better access economies of scale and cut out duplication. Though the pandemic may have put a temporary spanner in the integration, the firm said progress was good before Covid-19 hit.
Who backs it?
Most of the top ten shareholders are expert fund managers, including smaller companies specialist Aberforth Partners, Schroders, JO Hambro and Fidelity International.
Why should you invest?
Mike Savage, head of special situations at investment firm Killik & Co, says the firm’s shares are cheap but are still paying a good dividend.
And why shouldn’t you?
Lower traffic volumes due to the pandemic have affected the shares, though already vehicle usage is getting back to normal, Savage points out.