RE: Large trades, overhang has been cleared21 Jul 2020 00:33
I had to post this from ADVFN from someone on the rental business, very bullish on the disposal of the vans.....as the company said onthe last RNS.... .... "The net number of vehicles returned to branches from lockdown up until the end of April was 6% in UK&I and 7% in Spain. These have been processed and largely held on the fleet pending a final decision as to whether any fleet is excess to future rental demand and should be disposed of. "
rental 20 Jul '20 - 14:24 - Redde Northgate
forget everything the most important thing to redd is the disposal prices and the current market and anyone in the trade knows prices for vans and cars have gone sky high.
redd profits will be up by massive percentages from June 2020 onwards, all the way through next year,
dealers that normally stock for example 100 vans are down to 6 vans in stock.
a £10000 van is up in price by around 20 percent,
Premium Car prices are through the roof too, a BMW M2 trade price £32000 selling through BCA for £44000.
£4500 vans are up £2000 for £6500
U
I would guess now alot of rentals have came back off hire then got sold at super high prices in June and now you cant buy a van anywhere so I would guess northgate side now running at 99 percent ulitisation, and as vehicles go off hire or swap for new vans northgate side making at least £2000 extra per van sold from june onward to continue next 12 months
if northgate side sell and swap for new 50000 vehicles and make £2k over cap for each van then this will bring in 100 million extra profit, (not turnover)
we should have been at a 400 share price anyways, this was dropped due to covid, but redd are winning over the norm proift due to van shortage, so we really should be at a share price of 550 - 600
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