Redde Northgate Share Discussion Threads

[bc4] 18/5/2022 09:00

A bit slow at first but picking up nicely now

[skinny] 18/5/2022 07:10

Pre-close Trading Update. Strong FY2022 performance across the Group Redde Northgate (LSE:REDD), the leading integrated mobility solutions platform providing services across the vehicle lifecycle, today announces its pre-close trading update for the year ended 30 April 2022, ahead of its results for the full year scheduled for Wednesday 6 July 2022. Group trading The Group has continued to trade well across the business and performance for the full year is expected to be in line with the upgraded expectations set out in the Group's trading update on 15 March 2022. Based on unaudited results, underlying revenues (excluding vehicle sales) were approximately 24% higher than FY2021 and total Group revenues (including vehicle sales) were approximately 12% higher than the prior year. As has been widely reported, global new vehicle supply has slowed and, consequently, demand for used vehicle sales has remained strong, which has positively impacted residual values. We expect new vehicle supply to continue to be tight over FY2023 due to ongoing macro events, with some moderation of used vehicle pricing. We have focused on the effective management of both the supply of new vehicles to the business and the number of vehicles disposed, which has resulted in average Vehicles on Hire ('VOH') growing around 8% year on year. Redde volumes continue to be around 90% of pre-Covid levels, although we are seeing longer hire lengths due to the impact of macro challenges in supply chains for parts in the wider vehicle service, maintenance and repair process. Whilst cost inflation has been felt across the Group, it continues to be carefully managed and margins have been in line with expectations. Underlying cashflow generation remains strong and the business operates with significant headroom on its committed facilities following the refinancing in November 2021. Outlook The ongoing macro challenges in the global automotive supply chains look set to continue in the short term, albeit expectations for a recovery next calendar year are growing. On this basis we expect to retain more of our van fleet this year and limit disposals in order to meet customer demand, and to grow our car fleet in line with our strategy. With strong performance in all areas of the business and supplemented by previously announced new business wins, the Board expects to see another year of progress in FY2023. Commenting on the trading update, Martin Ward, CEO Redde Northgate said: " We have delivered a very strong trading result this financial year. The breadth of services and products offered through our mobility platform has extended our reach with existing and new Partners. We have continued to enhance our model, with multi-year service contracts providing ongoing repeatable revenues and earnings. With significant further opportunity for growth, and building on the strong performance and momentum in the business, we look to the future with confidence." Notice of results The Group is planning to announce its preliminary results on 6 July 2022 and publish its Annual Financial Report shortly thereafter. The Group's interim results for FY2023 is expected to be announced on 7 December 2022. Presentations will also be made available via a link on the Company's website: www.reddenorthgate.com . For further information contact: Buchanan David Rydell/Jamie Hooper/Hannah Ratcliff/ Verity Parker [phone]

[purplepelmets] 18/5/2022 07:08

Surprisingly upbeat TU this morning. Margins unaffected, nice going lads. Expecting this to get back above 400p in short order.

[bc4] 13/5/2022 08:50

No there will be a pre-close update in May The Group plans to announce a pre-close trading update for the year ended 30 April 2022 in May 2022, ahead of the publication of its full year results scheduled for July 2022.

[zho] 12/5/2022 14:37

>>Pre-close update soon 12/05/2021 last year>> Pre-empted by the 15/3/22 TU I would have guessed. If so we'll have to wait until early July for results to end April.

[bc4] 11/5/2022 09:35

Pre-close update soon 12/05/2021 last year

[zho] 01/4/2022 13:39

It may well do but those figures have been changed within the last week.

[piwood] 01/4/2022 12:10

The REDD website states the information on this page was last updated on 10th January 2022.

[zho] 01/4/2022 11:55

The REDD website now shows consensus eps to 4/2022 increased from 38.6p to 48.6p, and to 4/2023 from 45.5p to 46.8p. https://www.reddenorthgate.com/investor-relations/analyst-consensus/

[skinny] 16/3/2022 16:07

Yes, quite amazing.

[deanowls] 16/3/2022 16:04

And the buyback seems to be working over a two day period!

[deanowls] 16/3/2022 14:41

Last accounts show 267p of tangible assets that I think are not in the price.

[zho] 16/3/2022 14:02

Barclays have increased their target price from 516p to 556p https://www.sharecast.com/uk_shares/broker_views

[rmillaree] 16/3/2022 08:29

The problem was the ridiculous certainty of your comment thats its a bad idea buying back shares - my comment was really crass back at crass unfortunately in its tone in that regard. I am well aware of the subtleties here as you are too. Hey ho - you could be right here ref sharebuybacks - i guess shareprice in 24 months will be reasonable test in that regard. Me i am more than comfortable with sharebuybacks at current price.

[fenners66] 15/3/2022 20:48

rmillaree 15 Mar '22 - 17:44 - 4597 of 4598 "I always think the easy solution if you dont think buybacks are good value - sell up and move on." I always think that type of statement is crass. After all its not binary - buy companies that do/don't do buybacks or vice-versa. We buy shares in companies that we expect :- 1 they know how to run a business and grow it 2 its profitable and may pay a dividend 3 the shares are cheaper than you expect them to be later (though if they pay a high dividend the so what if they stagnate) 4 they have barriers to entry and can hold onto their business etc. etc. They might do all that and buybacks - which I disagree with but that alone does not necessarily wreck the other elements. Put it another way , ever voted for any party at an election? Did you agree with Everything they did? Can you give them your support and disagree with some bits? However there are masses of buybacks that overpay - then as soon as the buyback , ie temporary contrived demand for the shares, ends , the share price slides.

[grahamburn] 15/3/2022 18:27

Well done, km18. UP-TO-DATE. You will know what is meant by that, even if others do not.

[rmillaree] 15/3/2022 17:44

"Another pointless waste of money share buyback." Well each company should certainly be judged on its own merits - much better doing share buyback when trading is strong and sharprice weak generally speaking compared to other times when price is not so evidently reasonable value . In the cold light of history sharebuybacks generally work out well where company delivers consistent growth in future profits and/or the buyback materially pushes up eps and profits dont dive - just look at how well next have done over the years to see how it works when things go right. The way i tend to look at it is if i dont want to sell the shares now value is half decent in my viewpoint so i am not averse to company buying at current price - having said that i bought in here at much lower levels than price is at now. I always think the easy solution if you dont think buybacks are good value - sell up and move on. So from my persepctive bring it on ref share buybacks.

[km18] 15/3/2022 14:23

Redde Northgate issued a trading update this morning and launched a share buyback program of up to £30 million. The Group continues to perform well and is trading ahead of expectations driven by a strong performance across the business. Rental margin to the end of February was 15.8% in UK&I and 17.5% in Spain. Based on current trends the Board now expects full year underlying profit before tax for the year ended 30 April 2022 to be in the region of £150m, comfortably ahead of consensus of £133.9m. Valuation is attractive with forward PE ratio at 8.4, dividend yield is generous at 5.4%. Share price has been trading more or less sideways for 12 months, but today’s release has triggered a 7%+ spike. This certainly looks like a share with upside potential over the next couple of years, both from earnings growth and rerating. BUY.... ...from WealthOracleAM https://wealthoracle.co.uk/detailed-result-full/REDD/381

[deanowls] 15/3/2022 11:38

I fully expect that they will increase the dividend as well. They have/had a large NAV but with cars for fleets hard to come by I imagine the cash flow is good at the moment as they sweat assets. If/when some normality returns I expect some of that to reverse but also rates will have increased currently.

[swiss paul] 15/3/2022 11:24

Yeah is that why theyu are keeping them in treasury rather than just cancelling. hat would have improved teh share price is a one off divvi - or an increase.

[dicktrade] 15/3/2022 11:07

121.5m now :-)))

[deanowls] 15/3/2022 10:21

Exactly. But they only have 30m against the 96m market value of that number of shares.

[zho] 15/3/2022 08:12

Yes - see clause 17a at https://reddenorthgate.co.uk/media/2831/notice-of-agm-2021.pdf "That the Company be generally and unconditionally authorised to make market purchases ... ... the maximum number of ordinary shares hereby authorised to be acquired is 24,609,142, representing approximately 10% of the issued ordinary share capital of the Company as at 28 July 2021"

[zho] 15/3/2022 08:05

>>I’m more worried they want 24m for thier 30m>> Perhaps they have existing authorisation to buy back up to 24m shares? That wouldn't mean they expect to be able to buy all 24m shares for £30m.

[deanowls] 15/3/2022 07:47

I’m more worried they want 24m for thier 30m. They expects no Armageddon?