(Sharecast News) - Vehicle rental group Redde Northgate said on Wednesday that it had continued to trade well across and that its full-year performance was expected to be in line with upgraded expectations.
Redde Northgate stated, based on unaudited results, underlying revenues, excluding vehicle sales, were approximately 24% higher year-on-year, while total group revenues, including vehicle sales, were roughly 12% higher than twelve months earlier.
The FTSE 250-listed company noted that global new vehicle supply had slowed and, consequently, demand for used vehicle sales had remained strong during the period, which positively impacted residual values. Redde expects new vehicle supply to continue to be tight over the 2023 trading year due to ongoing macro events, with some moderation of used vehicle pricing.
Redde also noted that while cost inflation had been felt across the group, it continues to be carefully managed, with margins in line with expectations. Underlying cash flow generation was said to have remained "strong" and the group added it was operating with "significant headroom" on its committed facilities following its refinancing in November.
Chief executive Martin Ward said: "We have delivered a very strong trading result this financial year. The breadth of services and products offered through our mobility platform has extended our reach with existing and new partners.
"We have continued to enhance our model, with multi-year service contracts providing ongoing repeatable revenues and earnings. With significant further opportunity for growth, and building on the strong performance and momentum in the business, we look to the future with confidence."
As of 0925 BST, Redde Northgate shares were up 3.40% at 380.50p.
Reporting by Iain Gilbert at Sharecast.com
Redde Northgate (REDD)