Redde Northgate Dividends - NTG

Redde Northgate Dividends - NTG

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Redde Northgate Plc NTG London Ordinary Share GB00B41H7391 ORD 50P
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 250.00 01:00:00
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Redde Northgate NTG Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

ttny2004: Sam66 - are you still out there? Are you still invested in NTG after REDD / NTG acquisition?
tr200g: Sphere-that's a little wrong. Shorters have been very active since January, shorting NTG buying REDD and locking in the spread for an almost risk free trade (exc NTG getting bid for). This short will close when they settle the short with the new NTG stock I think the deal makes both companies less risky overall and looks pretty attractive. I've bought in post-deal
zangdook: So Redde shareholders got 0.3669 NTG per REDD share. NTG is trading at 265, which is just over 97p per old REDD share. But REDD was trading at 105 on Friday. NTG shareholders get an interim dividend in January and a final in September. REDD shareholders got dividends in March and September. So this year, original NTG holders will get both dividends, but REDD holders will get only one. I can't avoid the feeling that the management have no respect at all for shareholders.
kinwah: I think CA will be happy. This is essentially putting Northgate up for sale. The Redde deal looks rubbish but not disastrously so. There is not even a compensation clause for Redde if the merger is called off because of an offer for NTG (as far as I can see). Now's the time for any possible buyers of NTG to show their hand or forever hold their peace. It could appeal to a financial buyer or a car manufacturer. Surely a cash offer in the range of 350p to 400p would work for someone. At £3 I'm tempted to average down. The worst that can happen is the Redde deal happens which would be ok in the short term.
cxs1: They sure did. And the advisors get great cheques. Meanwhile NTG PIs get to wait around here another 2 years looking for proposed £10m in savings and efficiencies while mngt coin it 'making things work'. Tempting! And how often do such mergers run smoothly to plan? Nah. Too many unknowns now.
carcosa: The full 28 page report can be downloaded from here: hTTps:// if you have a subscription However a summary from here hTTps:// says: “An interesting time to invest in Northgate” says Zeus Capital We believe now is an interesting time to invest in Northgate, with a new executive board and a capable management team in place who have already delivered progress on an ongoing turnaround as we await a full strategic review. The group now has a clear and well communicated capital allocation strategy in place and improved earnings quality, in our view. We believe that the growth opportunity in the UK, the value of the Spanish business and the progress made to date with the turnaround are not being reflected in the share price, which is currently 15.9% below book value (414p per share in FY19A rising to 468p in FY22E). We use a variety of valuation methods including P/B, SOTP, DDM and DCF modelling and arrive at an average implied share price of 450p, 29.0% above the current share price. Investment case summary: Northgate is a clear market leader in its markets of UK & Ireland (c.25% share) and Spain (>40% share), enabling it to achieve strong margins and good returns across the group. The management team now have a clear and backable strategy to deliver growth in earnings across the group centred around defending the strong Spanish position while optimising and growing the UK business through investment in core systems and operational efficiencies. Management remain committed to a progressive dividend, paying a yield of 5.4% in 2020E based on our forecasts. Growth strategy: The group’s growth strategy is built around four key pillars being defend and grow share in flexible hire, selectively gain share in minimum term hire, broaden the provision of ‘capital light’ fleet solutions and optimise and increase participation in the disposals market. The group is well positioned in both the UK and Spain to execute this strategy, deliver uplifts in earnings and improve returns metrics from here. Forecast assumptions vs. consensus: Our forecasts sit 5-7% below current consensus. We take a more conservative view of UK volumes, and competitive pressure in Spain. On our conservative forecasts the group’s growth dynamics remain attractive, in our view. We expect adj. PBT in 2020E of £59.0m (vs £61.8 company consensus) going to £61.9m in 2021E (vs £65.4m). Net debt based on our assumptions in 2020E is £481.4m which is 1.8x FY20E EBITDA. Valuation: The shares are currently 15.9% below book value, which is unwarranted in our view. Based on our assumptions the shares trade on an EV/EBIT of 12.8x and a P/E of 9.8x in 2020E. We estimate the intrinsic value of the group to be 450p per share, based on our DCF, DDM, peer analysis and P/B multiple of 1.25x, which would imply a P/E of 12.7x and EV/EBIT of 14.6x on what we believe to be conservative FY20E estimates.
molatovkid: Last time we were this low, it preceded a nice rise to just under 450p. All blue buying on my screen....great results...a low price....dividend.....primed.
cwa1: Reasonable looking results this morning IMO:- Kevin Bradshaw, Chief Executive of Northgate, commented: "We continue to make good progress executing our rental strategy to address the compelling growth opportunity in our markets. "In the UK, our self-help turnaround programme is delivering. We have successfully introduced regular price increases during the year, and applied greater commercial focus to increase the efficiency of our operations. We turned a pricing corner in the second half of the year with our average hire rates returning to year-on-year growth after a three-year period of decline. Combined with our VOH(2) growth(3) driven by selective expansion of our minimum-term product, we delivered both rental income and average VOH growth(3) of 11.3% in 2019. Our disposal channel has also performed well, achieving firm sales prices for the vehicles we sell. "In Spain we continue to leverage the strength of our flexible hire business to provide a comprehensive range of fleet hire solutions to our customers. We are pursuing minimum-term growth opportunities with increasing selectivity as we take steps to protect the strong and attractive returns of the business against increasing price competition in the market. Lower disposal profits primarily reflect lower disposal volumes driven by the transition to longer holding periods following the previously announced strategic decision to increase the ageing of our fleet. "Steady state cash generation for the Group remains strong, and has enabled us to increase the dividend and fund attractive minimum-term growth opportunities. Our progressive dividend reflects the confidence of the Board in the future prospects of the Group. Through continued performance improvement in our core rental business and extending our penetration into complementary services to broaden the fleet solutions we provide, I am confident that our strategy will deliver our medium-term objectives of further profitable growth, strong cash generation and attractive returns for shareholders. "We are disappointed with the share price performance and remain focussed on addressing the undervaluation of the Group. The search for our new Chairman is well advanced with an exceptionally strong shortlist. The Board and management look forward to working alongside a new Chair appointment to maximise value for shareholders".
sam66: Well done NTG Full year Highlights New strategy implemented during the year created strong momentum in our markets: · UK vehicles on hire (VOH) returned to growth, with organic year-end closing VOH 6.9% higher. · 3,400 further vehicles now acquired in the UK following a competitor entering administration. · Relaunched minimum term rental proposition, delivering strong growth in both Spain and UK · Step up in VOH in Spain drove 14.8% growth in rental revenue. · New fleet optimisation strategy implemented during final quarter, to improve future cash returns. · Refinancing agreed to extend majority of the Group's Revolving Credit Facility for one year and to increase the leverage covenant. · Final dividend 11.6p per share proposed (2017 11.6p) taking the total dividend payable for the year to 17.7p per share, an increase of 2.3% (2017: 17.3p). (1) Refer to GAAP Reconciliation and Glossary of terms note. Kevin Bradshaw, Chief Executive of Northgate, commented: "During the year we comprehensively overhauled Northgate's rental strategy to address the compelling growth opportunity in our markets, and we have made good progress implementing this, ending the year with real momentum in both our main territories. Our self-help turnaround programme in the UK started to deliver tangible results, with more competitive pricing, commercial agility and competitive new propositions reversing the previous decline in VOH, which ended the year 6.9% higher on a like-for-like basis than at the same time last year. We have now acquired more than 3,400 vehicles following a competitor's entry into administration, reinforcing our momentum in the market. In Spain, our rate of growth stepped up substantially as we used our leadership in flexible hire to launch new propositions into a wider range of target markets. This drove strong growth in VOH and rental revenue, and our market leading operations ensured that rental margins were maintained, as we deployed substantial additional capital to grow our fleet. In both Spain and the UK our profits from disposals were significantly lower, due to a range of legacy commercial and financial factors. We have now implemented a new fleet optimisation strategy across the group, that will extend vehicle holding periods, create a more efficient capital base and maximise shareholder value. In October 2017 we set out targets for our businesses, and we are now evolving these further, to reflect the material developments over the past six months, and to relate our targets more closely to our key financial indicators, including rental profit and cashflow. Our overarching medium-term objectives have not changed, which are to deliver strong revenue growth, expanded margins and attractive returns for shareholders, and we are encouraged by progress made to date." Outlook & Guidance UK The VOH growth delivered during the second half of FY2018 has continued into early FY2019, providing an encouraging start to the year. The market remains competitive and although there are indications of price pressure easing, significant cost pressures remain, including OEM price increases as well as investments to drive growth and improve our operating efficiency. In line with previous guidance, we expect mid-high single-digit organic VOH growth in FY2019 and, with the addition of the VOH impact of the vehicles we acquired, this is expected to drive strong rental revenue growth. Our continuing focus on driving growth, and the costs of our business transformation programme, are expected to lead to rental margins being broadly flat in FY2019. Rental profits are expected to grow significantly beyond FY2019, with VOH expected to continue to grow in line with previous guidance, and margins expanding due to operational leverage and efficiencies being delivered as a result of our transformation programme. From FY 2019 Ireland will be reported as part of the UK and this guidance includes Ireland. Spain The VOH growth delivered during the second half of FY2018 has continued into early FY2019, demonstrating the continuing momentum in the business. We are seeing some increasing price competition in the flex rental market, as well as continuing cost pressures including the cost of network expansion. In line with previous guidance, we expect double-digit VOH growth in FY2019, driving continuing strong rental revenue growth. Rental margins in FY2019 are expected to expand due to the positive impact of depreciation rate change previously guided. Beyond FY2019 further rental profit growth is expected, driven primarily by previously guided growth in VOH and operating leverage. Group Group operating profits in FY2019 will be impacted positively by the change in depreciation rates implemented with effect from 1 May 2018, partially offset by the remaining negative impact of previous rate changes, in line with previous guidance. Group rental profit is expected to grow strongly, driven by continuing VOH growth and expanding margins in Spain. As previously guided, due to the new fleet optimisation strategy introduced in the final quarter of FY2018, which will extend vehicle holding periods by 3-9 months, vehicle disposal profits across the Group in FY2019 are expected to be significantly lower than in FY2018. The interest charge in FY2019 will be higher due to the higher net debt and the higher margin charge this incurs. Beyond FY2019 we expect further rental profit growth, and higher disposal profits, as the process of fleet aging is completed and disposal volumes increase. ROCE in FY2019 will be impacted by the reduction in disposal profits, as the fleet is aged, and by strong growth in VOH, with capital employed increasing ahead of the profit from the growth vehicles. Capex and cash Flow The reduction in vehicle disposal volumes in FY 2019 due to the implementation of the fleet optimisation strategy will be reflected in Group net replacement capex, which is expected to be 25-35% lower than in FY2018. This will deliver an increase in EBITDA less net replacement capex in FY2019 of £50-£70 million. Organic growth capex in FY2019 is expected to be in the range £90-120 million, and to generate marginal returns substantially ahead of WACC. Beyond FY2019 growth capex will reflect the continuing strong VOH growth anticipated. Net Debt We plan to maintain our balance sheet within a target leverage range of 1.5 to 2.5 times net debt to EBITDA, and during periods of significant growth we would expect leverage to be towards the higher end of this range. This is consistent with our objective of maintaining a balance sheet that enables us to finance our growth plans, is efficient in terms of providing long term returns to shareholders, and safeguards the Group's financial position through economic cycles. This updates our previous the leverage guidance of 1.25 to 1.85 times net debt to EBITDA. GAAP reconciliation and glossary of terms Throughout this document we refer to underlying results and measures; the underlying measures allow management and other stakeholders to better compare the performance of the group between the current and prior period without the effects of one-off or non-operational items. Underlying measures exclude certain one-off items such as those arising from restructuring activities and recurring non-operational items. Specifically we refer to disposal profit. This is a non-GAAP measure used to describe the adjustment in depreciation charge made in the year for vehicles sold at an amount different to their net book value at the date of sale (net of attributable selling costs). A reconciliation of GAAP to Non-GAAP underlying measures and a glossary of terms used in this document are outlined below the financial review.
ttny2004: Sam66 - Are you still holding NTG. Have recently over last 3 months bought in. Think good potential over coming couple of years.
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