Redde Northgate Share Discussion Threads

[s34icknote] 05/10/2020 17:35

And a 13 p div !

[owenski] 05/10/2020 16:13

Now nobody can go abroad for holidays, UK roads are packed and accident announcements are an everyday occurrence. Would've thought the business is doing well.

[s34icknote] 05/10/2020 15:49

Chunky buys pm

[zho] 05/10/2020 11:48

UK new van market accelerates 26.4% in September, but uncertainty ahead

[zho] 18/9/2020 08:20

White van man and woman are back behind the wheel, according to Redde Northgate, which rents out commercial vehicles to the delivery, retail and construction sectors.

Redde Northgate said yesterday that it was at least as busy as it had been at the same time last year and had benefited from the shortage of available vans as the economy emerged from lockdown.

Redde Northgate has a market value of more than £550 million. It was created by the merger this year of Northgate, a van rental company, with Redde, formerly known as Helphire, which sorts out businesses’ and fleets’ road accident claims. The group is expanding with the acquisition of the remnants of Nationwide Accident Services, the vehicle repair provider.

Northgate has long been regarded ...

[zho] 16/9/2020 20:27

Landing nearly five months after its April year-end, results for the commercial vehicle lease group Redde Northgate (REDD) tell only half a story. After completing its merger on 21 February, Covid-19 had a material initial impact on trading, though chief executive Martin Ward said demand and trading had returned to pre-pandemic levels......

[warno01] 16/9/2020 18:30

Check out Richard Leonard's video on PI World. IC also looking at 315p price target. Certainly headroom of 30-50% in the share price.

[flyfisher] 16/9/2020 16:22

Whilst i wasn't a holder at the time, i thought the merger made good sense as it diluted the woodford and invesco holdings for redde whilst reducing gearing for northgate with good synergy benefits.

It looks to be lowly rated on a yield of 5% and a forward p/e of 6, perhaps there is scope for a rerating.

I wonder what the brokers think.

[largeronald] 16/9/2020 13:47

That would be lager...

... and Sam Smiths actually do a rather nice organic one at 5%.

[zho] 16/9/2020 11:06

Redde Northgate PLC's annual profit fell by more than two-thirds with the recent vehicle rental and services tie-up taking a hit from merger costs, the company said on Wednesday, though it did explain it secured integration savings ahead of schedule.



Commercial vehicle rental group Redde Northgate posted a fall in annual profit, partly owing to one-off merger costs and pressure on revenue from the Covid-19 pandemic.

[fenners66] 16/9/2020 11:04

I did like the bit about accelerating the savings.
What is £15m a year worth to the share price ?

[janhar] 16/9/2020 07:53

Divi in tact so all good

[skinny] 10/9/2020 10:37

From the update on 19th May :-

"The Group is planning to announce its preliminary results on 16 September 2020 and publish its Annual Financial Report shortly thereafter. The Group sees this delay from its normal reporting timetable as a prudent and practical measure which is in line with the Temporary Relief Statement announced by the FCA on 26 March 2020, to allow sufficient preparation time following the disruption caused by Covid-19".

[zho] 10/9/2020 10:36

Announcement of year end results

16 September 2020

[chaders2] 10/9/2020 10:29

looking at the website regarding future reporting dates cant see anything for this year

[salchow] 07/9/2020 14:08

They have over 100,000 vehicles out on hire so that is good business for the rental side. There is also something on their website about managing 400,000 vehicles but I am not sure what that is about. They also buy vehicles that may need work doing before sale so it sounds like a lot of business for the repair side in the future. Plus the very good review in August on somewhere like PI World and I think it could be quite promising.

[rental] 06/9/2020 10:56

As a owner of a vehicle rental company
Around 4 percent of our vehicles are at a bodycentre for either accident repairs or repairs and prep for disposal at any time. We have to use 3 body shops per hire depot to cope with the work load ourselves.
This 4 percent is a constant figure, not seasonal.

So if Redd wasn’t using nationwide crash repair as a supplier already then nation wide crash repair have just received a huge work load of all Redds repair and prep work.

[fenners66] 04/9/2020 12:18

"Some are only reaching a fraction of pre COVID-19 volumes despite reopening outlets. Consequently, the sector is set for a make or break re-balancing period over the next few months. Refreshed lending agreements, cash conservation and supply chain management will be key."

So weather a few months and this could be a CV bargain

[fenners66] 04/9/2020 12:17

"After PwC was appointed as administrators, the majority of Nationwide Accident Repair's business and assets were sold to RunMyCar Ltd, a subsidiary of Redde Northgate."

Yes it does