Redde Northgate Share Discussion Threads

[riverman77] 09/8/2020 18:26

I believe REDD owns Van Monster which sells their vehicles. What is actually causing this huge demand for used vans - is it just the increase in online shopping or is there something else driving it?

[rental] 09/8/2020 17:57

Redd should now be buying a few van dealerships to market their disposals rather than be dependent on Bca and Manheim

[rental] 09/8/2020 17:55

There is only one type of winner in this van shortage, and that’s people that already own them, rental company’s and lease company’s,
Prices are sky high, dealers are desperate for stock,
Some dealers that normally stock 100 used vans for sale are down to 1 or 2 vans, the situation is crazy and has never happened before in my lifetime. Some prices are up 100 percent now from cap normal
Pricing

Rental rates will now start to rise as no one can get new vans, and we are already enjoying huge disposal prices at unbelievable high prices,


hxxps://www.motortrader.com/motor-trader-news/automotive-news/dealers-frustrated-high-van-values-auction-07-08-2020

[riverman77] 07/8/2020 16:30

Good interview, and nice to hear someone positive on REDD which has been such an unpopular stock for so long. He obviously highly rates the new management team and thinks they can turn this around. The demand for used vans right now is another big plus. The Redde-Northgate combination should also bring better diversification of revenues and good synergies (Richard mentioned shared depot, maintenance and sales costs).

[master rsi] 07/8/2020 16:06

re -Richard Leonard

That is a very bullish interview on REDD not only short term but also longer term he reckons.

[approach3] 07/8/2020 13:07

Excellent listen Tomps. Lets hope Richard Leonard is right.

[tomps2] 07/8/2020 11:11

piworld interview with Richard Leonard covers REDD at 42:52.

[rental] 05/8/2020 22:07

hxxps://www.am-online.com/news/market-insight/2020/07/23/used-lcv-values-rose-by-208-in-q2-reports-aston-barclay

Soaring demand for vans after COVID-19 triggered a home delivery shopping culture across the UK triggered a 20.8% rise in used values during Q2, according to Aston Barclay.

The independent remarketing specialist, which continues to operate wholly online in response to the pandemic’s impact on its auction houses, said the average price of a used light commercial vehicle (LCV) had risen to a new all-time record of £5,949.

“We don’t know when the prices will stabilise, although moving into July prices have cooled slightly as supply has started to improve,” said Geoff Flood, Aston Barclay’s national LCV manager.

Geoff Flood, Aston Barclay’s national LCV manager“However, there is likely to be a shortage of stock during the summer as OEMs get production levels back to normal before fleets kickstart their replacement programmes.”

The PSA Group was one manufacturer that appeared to identify high demand for LCVs as a key priority in the post-lockdown trading environment, prioritising the return to operations for its Luton factory over that of Astra-producing Ellesmere Port last month.

Aston Barclay reported this week that more dealers chased fewer available used LCVs in the market during Q2, particularly when franchised dealers opened for business on June 1 – triggering a dramatic rise in competition for stock.

It said that between 330 and 360 online buyers were logged on for each sale with all types of vans and chassis cabs finding homes.

Even a £3,000 van with £2,000 of damage sold above book, Aston Barclay said.

The only vehicles that have struggled are nine-seat minibuses as they do not work currently for operators based on current social distancing rules.

A statement issued by the remarketing provider said that it had continued to sell used vans online during the lockdown as sectors like home delivery experienced a peak in demand.

Those dealers who saw stock depleted during lockdown were then faced with buying replacement stock for more than their original retail sale which has caused challenges on cashflow and stocking strategy, it said.

Double-cab pick-up prices also rose in Q2 by 4.2% (£312) on the back of a marked fall in average age and mileage to 60 months and 65,000 miles.

Just last week Aston Barclay reported that the strong re-start to post-lockdown trading had also seen used car values rise to record levels for a Q2 auction sales period – with older cars and diesel vehicles leading the way.

It reported that stock between 55 and 78 months had generated a 20.6% (£1,318) rise in values during the period to £7,708.

[rental] 27/7/2020 19:31

hxxps://www.motortrader.com/motor-trader-news/automotive-news/van-prices-surge-16-online-auctions-record-market-08-07-2020

[rental] 27/7/2020 19:29

"The net number of vehicles returned to branches from lockdown up until the end of April was 6% in UK&I and 7% in Spain. These have been processed and largely held on the fleet pending a final decision as to whether any fleet is excess to future rental demand and should be disposed of. "

Lets wait and see on any update, before results at September


hi master rsi,

interesting, i hadnt seen this, this is good news, as prices starting moving up very strongly from around may 2nd, so if they held on to vans in the period before this, then they have managed to make furher profits,

van prices still sky high, van shortage is further taking hold, vans are still selling trade for £2k over cap,

there is no rush to sell vans as they going up in value month on month

[master rsi] 20/7/2020 23:31

Invesco has gone to 0.01% or 33,264 shares from 17/07/2020
so no more selling from them.

[master rsi] 20/7/2020 23:10

rental
" Also own a vehicle rental company myself and van dealerships and know the industry well."

I hope your comments are right and your numbers are not from the back of a cigarette packet, being on the rental business.
The company said on the last RNS...

"The net number of vehicles returned to branches from lockdown up until the end of April was 6% in UK&I and 7% in Spain. These have been processed and largely held on the fleet pending a final decision as to whether any fleet is excess to future rental demand and should be disposed of. "

Lets wait and see on any update, before results at September

[rental] 20/7/2020 14:24

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

[master rsi] 20/7/2020 10:12

Follow-through of the movement upon the stock, though the market started well down but now recovering.

[flyfisher] 19/7/2020 14:18

That large volume on friday should have cleared the stock overhang, was it the residue from woodford or from invesco?

With road traffic use back to normal, the accident and legal side of the business should be recovering to normal.

[master rsi] 17/7/2020 16:46

And a nice finish with the UT 169.80p


16:35:20 89,756 shares 169.80p UT

[master rsi] 17/7/2020 15:03

From the UPS thread ......

UPS
REDD 167.70p ( 167.20-168.20p )
Had the retracement and was ready to move higher when today there are some large trades changing hands, meaning any overhang has been cleared and also broken the downtrend of the last 40 days.

[skinny] 17/7/2020 13:25

Some very large trades today.

[rogthepodge] 07/7/2020 14:42

National Accident Repair Centres have been put up for sale by Carlyle. Could this be a good acquisition?

[rogthepodge] 05/6/2020 14:18

your prerogative

[toffeeman] 05/6/2020 14:17

I sold out today crytalising a big % loss in order to apply for excess TED shares in their placing.

I don't think I will return.

[skinny] 03/6/2020 09:45

A nice move back to £2+ today.