Redde Northgate Share Discussion Threads

[rmillaree] 13/3/2024 18:42

"Redde is already well integrated. It has repair shops for its fleet and doesn't need more."

Its not my idle speculation here - it was reported in the Times that Redde had approached halfords ref merger - so there obviously must be some fuel to the fire here. Redde are expanding their fleet so it could be the case that it would help to meet future demand if there is no obvious imediate need.

I wouldnt discount the possibility that they are happy to take on the cycling store formats if that diversifies their income stream. I would agree though that it wouldnt really make sense them actiavely wanting to go down this route without the benefit simply coming with the motor garages/trade - so i see that as being a bit if a freebie or even associated "nuisance". Prhaps they could even syphon off the non motor trade units perhaps if merger was done ? who knows.

anyway Halfords board rebuffed the offer so it could be idle speculation after all if it amounts to nowt.



hxxps://www.fleetnews.co.uk/news/halfords-targeted-by-redde-northgate-in-14bn-merger

[deanowls] 13/3/2024 18:06

They are still outsourcing a lot of work as per the last report.

[meanreverter] 13/3/2024 17:12

Redde is already well integrated. It has repair shops for its fleet and doesn't need more.

[rmillaree] 13/3/2024 14:06

those splits dont surprise me and perhaps evidence that Halfords at present are not making much out of the opportunities they have from those the autocentre side of things - bringing in a boatload of extra work with similar overheads could materially uplift the prospects of that side of things.

[meanreverter] 13/3/2024 07:53

According to Halford's most recently published presentation



(pp. 14 and 17), the underlying EBIT in FY23 for Autocentres and Retail are respectively £10.4m and £58.7m. That is, Retail accounts for 85% of EBIT.

[rmillaree] 12/3/2024 17:19

Halfords have the great network of locations and the garage facilities that can do vehicle repair work or keep vans - that would bring alot to the table for someone like Redde who are looking to expand - eg if they hired out vans direct to the public from the halford sites or kept vans their for pickup dropoff - or could use these facilities to do the repair work on their vans.

The cycling stuff and "shop" selling bits and bobs is really a sideline that makes a bit of money - probably brings some freee cashflow to the table if its making money from day 1 with no investment needed.

[meanreverter] 12/3/2024 16:37

I don't understand why a company that sells stuff to motorists and cyclists is being compared to a company that leases fleets of vans to other companies.

[deanowls] 12/3/2024 10:15

I’ve been wondering about the dlg takeover currently in play. Is there an opportunity for redd, dlg want more cash, could redd take the workshops and a long term contract by teaming up with whoever possibly takes over dlg. More coverage, big contract, what’s not to like?

[rmillaree] 28/2/2024 12:37

i think they were similar before halfords went into freefall. they had their chance for merger of equals and they turned it dwon (halfords)

my only worry here is that redde do offer premium to prevailing halfords shareprice - if thats likley to be the case one would be better off holding halfords shares at the time. at current low price though i suspect that might need to be done based on boards prior rejection.

Unfortunately with debt where it is i am not convinced hostile takeover makes sense when reddes shareprice is so lowly rated - as that would invariably involve dilution - i am sure they would say its earnings accreative but reality is not sure redde need the hassle of integrating if they are doing ok - i do concede there coudl be compelling logistical efficiency reasons though why it could still be no brainer even if i dont like the fact halfords may get summit on top for clealry poorer business.

[rogthepodge] 28/2/2024 12:12

possibly a HFD deal is closer now? How do the market caps compare? Does HFD have twice as many garages as shops?

[disc0dave46] 28/2/2024 11:06

Well HFD is a lot cheaper today following a profit warning.

[swiss paul] 19/2/2024 21:02

Yikes - he gottta knife?

[jam2day] 14/2/2024 12:15

Some Chucky trades today??

[eigthwonder] 10/2/2024 23:45

Excellent management team. Perception of company always coloured by profits and losses from disposals of old hire fleet but company has gone a long way to address that. Have always thought the end game lies in the hands of the Chair given her links into the auto industry and history of selling businesses.

[deanowls] 10/2/2024 10:04

Due to their size I’d expect in a rising interest rate environment they are able to pick up more business due to others struggling.

I’d take 6 quid a share for my lot!

[rech] 09/2/2024 20:00

I made a packet here during the HHR days. David Lindsay.

Just spent 30mins going through the interims. I don't see anything here to worry about, provided that the interest rate doesn't go higher.
Looking to buy at 320-325

[largeronald] 09/2/2024 16:29

Skinny - same here although not at 5p. My best divi payer by a long shot and I've no intention of selling - it's just that I find the price action worrying.

[skinny] 09/2/2024 16:06

As I've mentioned before, my route here was as a holder of Helphire @5p in 2013 and I'm (still) quite happy to hold.

[largeronald] 09/2/2024 15:52

It's not the board that takes it private - like I said, have a look at what happened to Paysafe. There are others, but that's the one I have personal experience of.

There'll be no-one happier than me if I'm proved wrong.

[eigthwonder] 09/2/2024 15:20

Management hosted institutional investors a few weeks back I think; hardly neglecting their obligations.

[zho] 09/2/2024 14:47

>>Surely if they wanted to do what you are saying they would be sending the opposite signals ..>>

And not buying their own shares.

[rmillaree] 09/2/2024 14:44

"This has all the feel of being deliberately run down before being taken private - and then relisted 3 years later at 3 times the price."


huh this sounds like nonsesne to me - updates from the company have been clear transparent and pretty much on the money - they are outwardly exuding confidence not the opposite. Surely if they wanted to do what you are saying they would be sending the opposite signals

Directors dont move the shareprice the market does - if there are worries about material drops in residual values of vans that explains recent share price weaknes.. Where on earth would the board get the moeny to take it private?

Even if they tried sharehoilders ultimately choose what happens.

[largeronald] 09/2/2024 13:54

Have a look at the last 50 or so posts on the PAYS thread. Absolute scandal. The CEO recommending the offer was the guy who counted the votes!

[largeronald] 09/2/2024 13:48

Seen it happen before - a seemingly flourishing company generating cash hand over fist having its share price walked down for no apparent reason whatsoever for 6 months and then, lo and behold, an offer recommended by the board to take it private comes in at a derisory price. Three years later, back it comes on the market.

[grahamburn] 09/2/2024 13:42

Where do you get that "feeling"?