Redde Northgate Share Discussion Threads

[mngf] 13/7/2021 15:42

Big spike and then trending down, strange

[pottsypotts] 13/7/2021 14:14

Very odd, volume is high so hopefully this is the sneaky mm trying to buy some stock low

[solrei] 13/7/2021 13:55

Rather strange price action today

[flyfisher] 13/7/2021 12:49

Why now, where was the potential bidder when crystal amber was selling a large stake at 180p?

[tonysss13] 13/7/2021 12:42

cause of spike

RARE ALERT: Redde Northgate said to ...
Tuesday, 13 July 2021, 10:44 am
Redde Northgate, London-listed the vehicle rental and accident management company, is at the centre of intense takeover speculation.

People following the situation said Redde Northgate has received an approach for the whole company.

The approach is said to have come from a private equity firm, said people following the situation.

However, it's not clear whether Redde Northgate's board is willing to accept the approach at the current level, said people following the situation.

These people following the situation said It's thought the company and some shareholders may not be willing to accept less than 500p a share for Redde Northgate.

Redde Northgate was created in 2019 from a share-for-share merger of Northgate and Redde.

To be clear this story is RARE. If you are unfamiliar with the RARE definition I have pasted it below:

hxxp://www.betaville.co.uk/betaville-intelligence/rare-alert-redde-northgate-said-to/

[disc0dave45] 13/7/2021 11:34

Good acquisition - but no numbers so how good was it?
Checked Companys House and no accounts registered.

[skinny] 13/7/2021 11:32

Yes, very odd action there :-

[fenners66] 13/7/2021 11:00

Why the sudden leap?
Market has known all morning about the electric charging deal ?

[skinny] 13/7/2021 07:36

.




Acquisition of Charged Electric Vehicles Limited

Expertise supports Group's EV transition and ESG objectives

Redde Northgate plc (LSE:REDD), the leading integrated mobility solutions platform providing services across the vehicle lifecycle, is pleased to announce that on 9 July 2021 the Group completed the acquisition of Charged Electric Vehicles Limited ('ChargedEV'), a specialist in the supply and installation of Electric Vehicle (EV) charging equipment across the UK.

This strategically significant acquisition provides the Group with a platform to expand its offerings in this important and growing area as both its own EV fleet and its customers' EV fleets evolve. It will also support the Group in its environmental goals and be integral to its overall programme around EV transition and reducing carbon emissions.

ChargedEV operates nationally, taking orders from customers for an EV charging point and then delivering the installation via one of its own trained electrical installers or via a network of approved third party installers . With a team today of around 20 EV experts, it is expected to expand over time as the EV transition gathers pace. Customers come to ChargedEV either direct via its website or via third party partners who see the benefit from working with a leading installer with excellent service and expertise.

The addition of ChargedEV to the Group complements the work already undertaken to position Redde Northgate to support our customers' transition from internal combustion engines (ICE) to EVs. With the acquisition, the Group now has an experienced team that can offer a turnkey solution on EVs and EV charging. This development, and the growing EV composition in the fleet, is part of a wider strategic aim to ensure that Redde Northgate is at the forefront of this transition which will grow over time. More widely, the Group now has over 300 fully trained technicians across the Group who are certified to work on EVs, with the majority of the wider team also trained on EV awareness and plans to enhance the Group's workshop and bodyshop capacity in this area over time.

Commenting on the acquisition, Martin Ward, CEO Redde Northgate, said:

"As leaders and businesses across the globe seek to tackle the world's growing environmental challenges, we too are working hard to position the Group to provide responsible and sustainable solutions for our customers and stakeholders. We are delighted to have completed the acquisition of ChargedEV, which in line with this strategic objective, places us at the forefront of the transition to EV in our markets as both our own and our customers' fleets evolve. I'd like to welcome the ChargedEV team to Redde Northgate and look forward to developing this important area of the business."

Further information on ChargedEV can be found at www.chargedev.co.uk

-Ends -

[purplepelmets] 13/7/2021 07:00

Bit of a delayed reaction

[deadly] 12/7/2021 19:39

looking strong after the recent results.

[tomps2] 09/7/2021 08:23

Richard Leonard mentions Redde Northgate (REDD) in the latest PIWORLD Interview at 15m57s.

Watch the video here:

Or listen to the podcast here:

[deanowls] 07/7/2021 16:07

If it helps I couldn’t understand either of you. ;-)

[rmillaree] 07/7/2021 15:44

"Perhaps semantics / wording is confusing the issue."
Agreed i think we are probably both trying to say the same thing.

[disc0dave45] 07/7/2021 15:02

Perhaps semantics / wording is confusing the issue. Apologies as may have interpreted your above or below the line incorrectly, but my previous post 4505 is as it stands as per reported today, and doesn't change my thinking unless there is to be further amortisation of intangibles - will take on board your view there is likely to be.

[rmillaree] 07/7/2021 14:37

me

‘i would guess though they will put the amortisation below the line so it is excluded from the calc of pbtso the saving should drop through….̵7;

disc0dave45
They haven’t reported amortisation in that way today, in terms of their underlying numbers. So would assume if fully written off now the savings won’t drop through, that’s all I was saying.
Still like this and think there is decent upside but the savings are circa 8p eps which makes a big difference and not too certain how the broker forecasts have been derived - anybody?.

ref "They haven’t reported amortisation in that way today"
Unless i got the wrong end of the stick when i looked they most definately have quoted underlying profit before factoring in amortisation with the amortisation being deducted afterwards (what i call below the line). There looked like a boatload of goodwill on the balance sheet so i suspect there may be more to come at some stage.

[disc0dave45] 07/7/2021 12:59

‘i would guess though they will put the amortisation below the line so it is excluded from the calc of pbtso the saving should drop through….̵7;

They haven’t reported amortisation in that way today, in terms of their underlying numbers. So would assume if fully written off now the savings won’t drop through, that’s all I was saying.
Still like this and think there is decent upside but the savings are circa 8p eps which makes a big difference and not too certain how the broker forecasts have been derived - anybody?.

[deanowls] 07/7/2021 12:57

There’s over 6.5m just if they get to break even on the garages. I’d expect they start to turn a profit there and there is mention of large insurance tenders on going.

Overall a good management team that have taken out cost and are now looking to grow across their many verticals. More to come imho.

[rmillaree] 07/7/2021 12:50

"to this years amortisation of intangibles so the savings will not increase directly their underlying pbt if no amortisation of intangibles is applied for this FY - I think that’s what I meant lol."

I would agree if they have amortisation above the line (ref underlying pbt) - i would guess though they will put the amortisation below the line so it is excluded from the calc of pbtso the saving should drop through (other than these savings never seem to simply follow through to the bottom line anyway come end of year).

Eitehr way though it makes no practical difference each person who is doing their calcs will copme to their own consistent conclusion presumably - the market certainly should be fooled if a change in amortisation treatment appears masks to mask the growth in profits - i think we are all in agreement this is a real expected profit uplift on the way ignoring/removing amortisation as an expense.

[disc0dave45] 07/7/2021 12:40

I was going on the GAAP reconciliation which is:Statutory profit before tax of £67mAdd back:Exceptional operational expenses £8mAmortisation on acquired intangibles £19.5mGain on bargain purchase (£1.5m)So underlying profit before tax = £93mTaking 18% tax then underlying pat is £76m (thus eps 31p).Was trying to say that the FY22 operational / synergy savings (£20m) equate near enough to this years amortisation of intangibles so the savings will not increase directly their underlying pbt if no amortisation of intangibles is applied for this FY - I think that's what I meant lol.Have updated my previous posting about the eps and shares in issue (this site has 307m which is wrong, should be 246m).

[rmillaree] 07/7/2021 12:06

disc0dave45
"£93m underlying PBT includes about £20m of amortisation of intangibles"

Not sure if its wording used here that is confusing me - but i can confirm that underlying PBT does NOT include intangible amortisation. Intangible amotisation is taken from the £93 mill to get to the statory PBT before tax of £67 mill.

Practicably speaking to me when doing any calcs i am happy to pretend the amortisation doesnt exist as to me its an historical item. Therefore using the higher figure ref prifits is higher for me. I suspect the expected 34p normalised EPS that is showing up for 2022 on stockopdia (pay site) adjusts out the amortisation too - if that is the case it looks much more healthy if we say they will do 34p EPS this new year.

Ref your quoted figure of weighted underlying EPS of 24.8p i think this figure may be wonky - i think there is minimal dilution this year but am happy to be proved wrong. Company havent exactly made it easy by omitting share count at end of each year !

It looks like zeues may have updated forecasts to 34p eps this year and 43p next year - so its clear that the expectations are deffo trending in the right direction if this is correct info i have been told.

[johnhemming] 07/7/2021 10:14

Zeus are saying it could beat £6 over time.

*Redde Northgate is a research only client of Zeus Capital Ltd.

[disc0dave45] 07/7/2021 09:03

When weighted for existing shares in issue the underlying eps is 24.8p, so looks decent rating.
Edit: Apologies, for some reason this site has 307m shares in issue (which I used to get eps 24.8p) which should be 246m, so PE13 (not 16).
Only looked quickly but their £93m underlying PBT includes about £20m of amortisation of intangibles, so am I right in thinking for FY22 their merger integration and permanent FY22 savings (£20.5m) will in effect be netted off (assuming no further amortisation of intangibles) from this FY PBT.?