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24/11/2020
14:22 | greenhat2: REDD are degreasing the fleet Used van prices up 15-25% on last year which means a huge balance sheet uplift which isn't reflected on the last bs The next set of accounts will show the true picture - I.e. debt being paid down Still plenty of legs especially if it gets into the 250
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23/11/2020
17:52 | zho: Well spotted flyfisher, although I think the cut off point for the December review may already have passed.
>>are AIM stocks in FTSE250?>>
No, but I don't think REDD is an AIM stock.
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23/11/2020
17:14 | flyfisher: As of today REDD is 349th in the all share list, so we have a sporting chance of joining the FTSE 250 index at the next review in december.
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07/10/2020
12:54 | largeronald: s34icknote - 6.8p final dividend makes a grand total of 6.8p. This is the only dividend that Redde have paid this year.
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16/9/2020
19:27 | zho: 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......
https://www.investorschronicle.co.uk/shares/2020/09/16/redde-northgate-accepts-furlough-aid-keeps-dividend/
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16/9/2020
10:06 | zho: 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.
https://www.morningstar.co.uk/uk/news/AN_1600246948150337000/redde-northgate-profit-nosedives-but-hails-merger-cost-savings.aspx
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.
https://www.sharesmagazine.co.uk/news/market/7084959/Redde-Northgate-cuts-dividend-as-profit-slumps-sees-bounce-back-this-year
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06/9/2020
09:56 | rental: 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.
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20/7/2020
13:24 | rental: forget everything the most important thing to redd is the disposal prices and the current market and anyone in the trade knows prices for vans and cars have gone sky high.
redd profits will be up by massive percentages from June 2020 onwards, all the way through next year,
dealers that normally stock for example 100 vans are down to 6 vans in stock.
a £10000 van is up in price by around 20 percent,
Premium Car prices are through the roof too, a BMW M2 trade price £32000 selling through BCA for £44000.
£4500 vans are up £2000 for £6500
U
I would guess now alot of rentals have came back off hire then got sold at super high prices in June and now you cant buy a van anywhere so I would guess northgate side now running at 99 percent ulitisation, and as vehicles go off hire or swap for new vans northgate side making at least £2000 extra per van sold from june onward to continue next 12 months
if northgate side sell and swap for new 50000 vehicles and make £2k over cap for each van then this will bring in 100 million extra profit, (not turnover)
we should have been at a 400 share price anyways, this was dropped due to covid, but redd are winning over the norm proift due to van shortage, so we really should be at a share price of 550 - 600
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25/10/2019
16:23 | bc4: MIDAS SPECIAL: Are there any companies worth backing from the Woodford wreckage?
Redde makes life easier for motorists when they are involved in road accidents. Woodford probably thought the firm would make life easier for him too.
REDDE
The group has contracts with several large insurers and dealerships so, when customers ring up to say they have had an accident, they will be referred straight to Redde
Woodford probably thought the firm would make life easier for him too
The business has a fleet of more than 10,000 cars and prides itself on top-notch service, providing replacement vehicles from standard hatchbacks to luxury convertibles to ice-cream vans.
Redde also works with a network of garages to ensure that repairs are completed quickly and efficiently and it manages claims for insurance firms.
Ward works with big companies too, handling damaged fleet cars or vans. And there is a legal division, that covers motor injuries, employer liability and negligence claims. This division works on behalf of insurers but it has some large public-sector customers too, such as the Royal College of Nursing and the British Medical Association
Ward did not just put the business back on its feet, he changed the dividend policy so that virtually all the profits are paid out as dividends.
In the year to 30 June, Redde paid a dividend of 11.65p, putting the stock on a yield of more than 10 per cent.
In most cases, such a high yield rings alarm bells with canny investors but Redde is slightly different because the generous payments are part of a deliberate policy and the board is committed to making sure that there is sufficient cash left in the business for its needs.
Redde had a difficult time earlier this year, when it lost a contract with a large insurer and the stock halved from £1.80 to 90p. Other contracts have been won since but these have not been fully reflected in the share price. This presents an opportunity for investors.
MIDAS VERDICT: Redde is linked to the Latin word restoration, helping drivers to get back to normal. With the stock at £1.14, the word is relevant to investors as well. Redde is a strong business with an attractive dividend and the shares should move higher.
The Woodford stake is large but big investors have been expressing an interest in the stock so the holding should be sold off relatively smoothly
This is a very good summing up about REDDE and its business
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06/9/2019
09:31 | master rsi: From the "UPS" thread ..........
REED 114.30p +2p
Redde alert - By Alex Newman - 5 September 2019 - Investors Chronicle
On the surface, there is much to suggest Redde (REDD) is trading well. Though margins fell in the year to June, the vehicle replacement specialist saw a 9.4 per cent rise in credit hire cases, a decent utilisation rate for its expanding fleet, and increased demand.
Look beneath the bonnet, however, and gremlins that contributed to the sell-off in the group’s shares earlier this year are still there. For one, the working capital strain has worsened, as debtor days climbed to 116, up from an average of 109 in the first half of the year and just 91 in the year to June 2017.
And while current assets rose from 112 to 116 per cent of current liabilities, trade and other receivables continued to climb, from £181m the prior year to £220m at the end of June. Given the group often already discounts claims in return for a supposedly more efficient and faster settlement process, it should be of little surprise that management is now taking a firmer line with insurers who take the discount and then defer payments at their leisure.
“If the group has to sacrifice some debtor days to preserve value, then it will do so,” is Redde’s new position. The decision of one insurer to return to its protocols after life on the outside has, apparently, only added to that conviction.
Consensus forecasts are for earnings of 13.5p per share for the 12 months to June 2020.
REDDE (REDD)
ORD PRICE: 112p MARKET VALUE: £ 342m
TOUCH: 111.2-112p 12-MONTH HIGH: 200p LOW: 82.3p
DIVIDEND YIELD: 10.4% PE RATIO: 10
NET ASSET VALUE: 52.5p* NET DEBT: 22%
Year to 30 Jun Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2015 249 24.3 9.0 8.3
2016 379 31.3 8.7 9.7
2017 472 31.8 8.9 10.6
2018 527 38.8 11.4 11.65
2019 590 41.7 11.3 11.65
% change +12 +7 -1 -
Ex-div: 03 Oct
Payment: 07 Nov
*Includes intangible assets of £99.2m, or 32.3p a share.
IC View
The return of a large insurer newly convinced of the cost-effectiveness of Redde’s claims protocols is an important development. These high-yielding shares look cheap, and tempted investors should now watch for signs that the strain on cash flows is abating. Hold.
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