Redde Northgate Share Discussion Threads

[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

[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

[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

"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?

[fenners66] 15/3/2022 07:13

Another pointless waste of money share buyback.
Its clearly in vogue
No imagination directors following one another like sheep across the market.
If the shares are "undervalued" at this level in the opinion of the directors , how come the market does not think so ?
They after all do know "best".
If the directors do not think the shares are undervalued - leave well alone !

[skinny] 15/3/2022 07:12

.

Group trading

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.

Further to the interim results announcement on 1 December 2021, the Group has continued to de-fleet a lower number of vehicles due to rental demand and new vehicle supply constraints with used vehicle market values staying strong. Vehicle supply constraints are expected to continue through FY 2023.

Redde volume recovery was hindered in December and January by the Omicron and work-from-home restrictions. The Group has seen good improvement since the beginning of February and volumes are now running at circa 90% of pre-Covid levels.

Based on the 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[1] of £133.9m. The Board expects disposal profits to account for c.33% of the full year underlying profit before tax compared to c.43% in the prior year.

Share buyback programme

The Group’s objective is to employ a disciplined approach to investment, returns and capital efficiency to deliver sustainable compounding growth. It continues to see exciting opportunities to deploy capital organically and has a good M&A pipeline. Even after taking into consideration capital to fund organic growth, payment of dividends in line with the Company’s dividend policy and acquisitions within the M&A pipeline, the Company has substantial headroom under its facilities and target leverage of 1-2x.

As a result, the Company announces that it will launch a share buyback programme of the Company’s ordinary shares for up to a maximum aggregate consideration of £30 million (the Programme), commencing on the date of this announcement. It is expected the Programme will be completed by 15 September 2022.

The Company has entered into an agreement with Numis pursuant to which it is intended that Numis will purchase up to a maximum of 24 million ordinary shares in the Company on the Company’s behalf. Under the Programme the repurchased shares will be held in treasury.

more.....

[greyingsurfer] 07/2/2022 16:14

Not in fact a reduction from over 9%. Turns out it was just the first holding notification they'd made since Nov 2019, prior to the Northgate/Redde merger. So no big change in number of shares held.https://www.londonstockexchange.com/news-article/REDD/clarification-notification-of-major-holdings/15318888

[zho] 03/2/2022 17:48

I missed this holdings announcement yesterday: Lombar Odier 9.58% -> 5.59%

[lodgey1973] 30/12/2021 10:26

440 is:

even
the sum of the first 17 prime numbers
an abundant number
a Harshad number
a happy number

[skinny] 30/12/2021 09:10

Resistance is futile!

[ramellous] 30/12/2021 08:16

This 440 is certainly a resistance level.

[skinny] 01/12/2021 16:07

A mention .