TIDMREDD
RNS Number : 8532L
Redde Northgate PLC
18 May 2022
18 May 2022
REDDE NORTHGATE PLC
("Redde Northgate" or the "Group" or the "Company")
Pre-close Trading Update
Strong FY2022 performance across the Group
Redde Northgate (LSE:REDD), the leading integrated mobility
solutions platform providing services across the vehicle lifecycle,
today announces its pre-close trading update for the year ended 30
April 2022, ahead of its results for the full year scheduled for
Wednesday 6 July 2022.
Group trading
The Group has continued to trade well across the business and
performance for the full year is expected to be in line with the
upgraded expectations set out in the Group's trading update on 15
March 2022.
Based on unaudited results, underlying revenues (excluding
vehicle sales) were approximately 24% higher than FY2021 and total
Group revenues (including vehicle sales) were approximately 12%
higher than the prior year.
As has been widely reported, global new vehicle supply has
slowed and, consequently, demand for used vehicle sales has
remained strong, which has positively impacted residual values. We
expect new vehicle supply to continue to be tight over FY2023 due
to ongoing macro events, with some moderation of used vehicle
pricing.
We have focused on the effective management of both the supply
of new vehicles to the business and the number of vehicles
disposed, which has resulted in average Vehicles on Hire ('VOH')
growing around 8% year on year. Redde volumes continue to be around
90% of pre-Covid levels, although we are seeing longer hire lengths
due to the impact of macro challenges in supply chains for parts in
the wider vehicle service, maintenance and repair process.
Whilst cost inflation has been felt across the Group, it
continues to be carefully managed and margins have been in line
with expectations. Underlying cashflow generation remains strong
and the business operates with significant headroom on its
committed facilities following the refinancing in November
2021.
Outlook
The ongoing macro challenges in the global automotive supply
chains look set to continue in the short term, albeit expectations
for a recovery next calendar year are growing. On this basis we
expect to retain more of our van fleet this year and limit
disposals in order to meet customer demand, and to grow our car
fleet in line with our strategy.
With strong performance in all areas of the business and
supplemented by previously announced new business wins, the Board
expects to see another year of progress in FY2023.
Commenting on the trading update, Martin Ward, CEO Redde
Northgate said:
" We have delivered a very strong trading result this financial
year. The breadth of services and products offered through our
mobility platform has extended our reach with existing and new
Partners. We have continued to enhance our model, with multi-year
service contracts providing ongoing repeatable revenues and
earnings. With significant further opportunity for growth, and
building on the strong performance and momentum in the business, we
look to the future with confidence."
Notice of results
The Group is planning to announce its preliminary results on 6
July 2022 and publish its Annual Financial Report shortly
thereafter. The Group's interim results for FY2023 is expected to
be announced on 7 December 2022.
Presentations will also be made available via a link on the
Company's website: www.reddenorthgate.com .
For further information contact:
Buchanan
David Rydell/Jamie Hooper/Hannah Ratcliff/ Verity Parker +44 (0)
207 466 5000
Notes to Editors:
Redde Northgate is the leading integrated mobility solutions
platform providing services across the vehicle lifecycle. The
Company offers integrated mobility solutions to businesses, fleet
operators, insurers, OEMs and other customers across seven key
areas: vehicle rental, vehicle data, accident management, vehicle
repairs, fleet management, service and maintenance, vehicle
ancillary services and vehicle sales.
The Company's core purpose is to keep its customers mobile,
whether through meeting their regular mobility needs or by
servicing and supporting them when unforeseen events occur. With
its considerable scale and reach, Redde Northgate's mission is to
offer a market-leading customer proposition and drive enhanced
returns for shareholders by creating value through sustainable
compounding growth. The Group aims to achieve this through the
delivery of its strategic framework of Focus, Drive and
Broaden.
Redde Northgate services its customers through a network and
diversified fleet of over 120,000 owned and leased vehicles,
supporting over 600,000 managed vehicles, with more than 170
workshop, body shop and rental locations across the UK, Ireland and
Spain and a specialist team of over 6,000 automotive services
professionals.
Further information regarding Redde Northgate plc can be found
on the Company's website:
www.reddenorthgate.com
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END
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