FTSE 250-listed Redde Northgate ups its full-year outlook
Redeemed Northgate shares rise as FTSE 250-listed commercial vehicle rental group raises earnings forecast
- Redde Northgate topped the FTSE 250 index rise list today
Commercial vehicle lessor Redde Northgate expects its annual figures to be better than expected, according to a surprising update.
Rescued Northgate stock rose today, rising 6.72 percent or 24.50p to 389.00p by midday, after falling about 3 percent over the past year.
Following the unscheduled trading update, the group found itself at the top of the FTSE 250 riser pack.
Cheerful: Redde Northgate expects the annual figures to come out better than expected
The company now expects full-year profit for the year to the end of April to hit the upper limit of market estimates at around £165 million. Earlier forecasts hovered around £155 million.
The company said it benefited from growth from large insurance contracts launched over the past year.
Martin Ward, CEO of Redde Northgate, said: ‘The strategy to deliver an integrated mobility platform has enabled us to deliver a unique offering to a wide range of partners and customers and is paying off.
“This is reflected in the strong performance across the business, despite continued supply chain challenges and direct inflation, particularly in the auto repair business.
“Looking to the future, the Group is performing at record levels, there is more interest in our platform than ever before and we have a strong foundation to drive strategic progress in the year ahead.”
The group added that it had seen “strong and resilient demand” for both car rental and accident management services.
It said: “As a result of this strong performance, the Board of Directors believes that the result for FY23 adjusted PBT is now likely to exceed market consensus and be around the high end of the consensus range.”
The group was formed from a 2021 merger between car rental company Northgate and accident management specialist Redde.
It offers ‘whole lifecycle’ services to car and van rental companies, from repair and maintenance to insurance, legal services and advice on the transition to electric vehicles.
It has a fleet of over 130,000 owned and leased vehicles, supporting over 600,000 managed vehicles, with approximately 175 offices across the UK, Ireland and Spain and a team of over 6,700 employees.