(Alliance News) - Redde Northgate PLC on Wednesday predicted annual results at the upper end of market forecasts, hailing "continued momentum".
The commercial vehicle hire firm is holding a general meeting on Wednesday, which will give shareholders a chance to vote on a proposed name change to Zigup PLC. Should investors back the move, the Darlington, England-based firm will adopt the new name no later than May 25.
"The new corporate name will allow the business to better reflect the strength and depth of an enlarged group of businesses undertaking various forms of integrated mobility," the company said, ahead of the meeting.
"The board believes that a more modern brand and name reflecting these changes will also help shift the narrative with all our stakeholders towards the group's strategic direction of travel."
Redde Northgate said it finished its financial year "positively". The firm's financial year ran to the end of April.
The firm added: "Our Spanish business continues to enjoy strong market conditions and our recent UK & Ireland re-organisation is helping us to deliver an increasingly seamless service to customers. As a result of the continued momentum in the business, we would expect to report full year results in early July towards the upper end of the consensus range."
According to company-compiled consensus, the revenue forecast range is GBP1.61 billion to GBP1.78 billion. Underlying pretax profit of GBP168.8 million to GBP180.5 million is expected. Both would represent improvements on the prior financial year.
In financial 2023, Redde Northgate recorded underlying pretax profit of GBP165.9 million, up 9.7%, and revenue of GBP1.49 billion, a 20% surge.
It said it is on-track to complete its third GBP30 million share buyback programme by July. As of the end of April, GBP24.8 million worth of shares were repurchased.
Shares in the company traded 3.1% higher at 420.50 pence each in London on Wednesday afternoon.
The firm, in its current form, was created out of the tie-up of Redde PLC and Northgate PLC in February 2020. The merger deal had been announced in November 2019.
By Eric Cunha, Alliance News news editor
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