Redde Northgate Share Discussion Threads

[largeronald] 07/10/2020 13:54

s34icknote - 6.8p final dividend makes a grand total of 6.8p. This is the only dividend that Redde have paid this year.

[flyfisher] 07/10/2020 12:28

A previous comment from Crystal Amber.

''Northgate's well-managed Spanish business, which generates over half of the group's operating profit, is the clear leader in its market with a strong brand, good geographic coverage and an attractive return on assets.
The Fund believes that the considerable value of the Spanish business is not reflected in Northgate's share price and that the company should therefore properly explore all options to realise the value of this asset.
For example, if the Spanish business were to be worth 130% of nav to an acquirer, then investors in Northgate would be currently paying less than one third of net asset value for the residual UK and Ireland businesses.''

[rogthepodge] 07/10/2020 12:20

Many years ago Helphire had a Spanish credit hire division if I remember correctly. Got closed down though I think, after Dimond Lovell legal case around 2000?

[deanowls] 07/10/2020 12:20

Interesting FF. I seem to remember that they were setting the Spanish business up to manage itself as a division which from a medium term plan would make sense if they were to sell it off so that the UK business was not affected.

[flyfisher] 07/10/2020 11:15

The post results analysts presentation commented upon ''Potential disposal of non-core assets''.

What assets are non core?

Activist shareholder Crystal Amber has been pushing for a sale of spanish operations, as they expect it would be attractive to european competitors who are seeking inroads into spain.

From Crystal Amber '' As previously stated, the Fund believes that Northgate's well-managed Spanish business would be an attractive acquisition candidate for several multinationals that have been attempting to increase their presence within the European flexible vehicle rental market. These larger and more diversified peers operate with greater leverage and lower costs of capital than Redde Northgate and would be able to realise multiple synergies unavailable to Northgate.

The Fund hopes that the company's ongoing review of Northgate's strategy will conclude that it is in shareholders' interests to initiate an auction of the Spanish business.

I assume that this is the non core asset, what value could a sale attract?

[s34icknote] 05/10/2020 18:28

Not many dividend paying companies these days !

[s34icknote] 05/10/2020 18:27

From the prelims That's the full year total with 6.8p final div

[largeronald] 05/10/2020 18:09

Where do you get 13p from?

[s34icknote] 05/10/2020 17:35

And a 13 p div !

[owenski] 05/10/2020 16:13

Now nobody can go abroad for holidays, UK roads are packed and accident announcements are an everyday occurrence. Would've thought the business is doing well.

[s34icknote] 05/10/2020 15:49

Chunky buys pm

[zho] 05/10/2020 11:48

UK new van market accelerates 26.4% in September, but uncertainty ahead

[zho] 18/9/2020 08:20

White van man and woman are back behind the wheel, according to Redde Northgate, which rents out commercial vehicles to the delivery, retail and construction sectors.

Redde Northgate said yesterday that it was at least as busy as it had been at the same time last year and had benefited from the shortage of available vans as the economy emerged from lockdown.

Redde Northgate has a market value of more than £550 million. It was created by the merger this year of Northgate, a van rental company, with Redde, formerly known as Helphire, which sorts out businesses’ and fleets’ road accident claims. The group is expanding with the acquisition of the remnants of Nationwide Accident Services, the vehicle repair provider.

Northgate has long been regarded ...

[zho] 16/9/2020 20:27

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......

[warno01] 16/9/2020 18:30

Check out Richard Leonard's video on PI World. IC also looking at 315p price target. Certainly headroom of 30-50% in the share price.

[flyfisher] 16/9/2020 16:22

Whilst i wasn't a holder at the time, i thought the merger made good sense as it diluted the woodford and invesco holdings for redde whilst reducing gearing for northgate with good synergy benefits.

It looks to be lowly rated on a yield of 5% and a forward p/e of 6, perhaps there is scope for a rerating.

I wonder what the brokers think.

[largeronald] 16/9/2020 13:47

That would be lager...

... and Sam Smiths actually do a rather nice organic one at 5%.

[zho] 16/9/2020 11:06

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.



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.

[fenners66] 16/9/2020 11:04

I did like the bit about accelerating the savings.
What is £15m a year worth to the share price ?

[janhar] 16/9/2020 07:53

Divi in tact so all good