(Sharecast News) - Van rental firm Redde Northgate said demand continued to outstrip supply in the UK and Ireland as it made a strong start to the current fiscal year.
In a brief trading statement ahead of its annual general meeting on Tuesday, Redde said while vehicles were starting to arrive in greater quantities, "these are not yet across the product range or at sufficient volumes to satisfy continued demand".
"Spain is enjoying both supply and demand momentum and this is supporting growth and feeding through to a reduction of average fleet age," it added.
"We remain focused on supporting rental sectors with the strongest long-term growth prospects. Residual values reflect current new vehicle prices and so, as previously guided, remain significantly above historic levels in both regions, which will be seen in ongoing elevated disposal profits."
Reporting by Frank Prenesti for Sharecast.com
Redde Northgate (REDD)