(Alliance News) - Redde Northgate PLC shares were up on Wednesday, after it said it expects full-year profit to be ahead of market consensus.
Shares in the Darlington, England-based commercial vehicle hire firm were up 6.7% to 389.04 pence each in London on Wednesday, making it one of the best FTSE 250 performers on Wednesday morning.
Redde said trading is ahead of expectations, noting "strong and resilient demand" for its vehicle rental and accident management services. It noted an improvement to visibility of van supply in UK & Ireland, after seeing constraints for most of the financial year.
Over in Spain, Redde noted, new vehicle supply for both vans and cars is "already close to normal levels."
It now expects adjusted pretax profit for the year ending April 30 to be ahead of market consensus and around the top end of consensus range. Company compiled consensus indicates that full-year adjusted pretax profit will be GBP155.2 million, in the range of GBP149.6 million to GBP164.4 million.
For financial year 2022, the company reported pretax profit of GBP132.7 million.
Redde plans to announce its full-year results on July 5.
Chief Executive Officer Martin Ward said: "The strategy of delivering an integrated mobility platform has enabled us to provide a unique offering to a wide range of partners and customers and is bearing fruit. This is reflected in the strength of performance across the business, despite ongoing supply chain challenges and direct inflation seen most notably in areas such as vehicle repairs.
"As we look forward, the group is performing at record levels, there is more interest in our platform than ever before and we have a strong base from which to make strategic progress in the coming year."
By Sophie Rose, Alliance News reporter
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