REDD.L Regulatory News (REDD)

28 July 2023

This announcement contains inside information

REDDE NORTHGATE PLC

("Redde Northgate" or the "Group" or the "Company")

Share Buyback Programme

Redde Northgate plc (LSE:REDD), the leading integrated mobility solutions platform providing services across the vehicle lifecycle, is pleased to announce the commencement of a share buyback programme of up to £30 million (the "Share Buyback Programme").

As set out in Redde Northgate plc's full year results announcement on 5 July, the Group delivered record revenue and profits and strong levels of cash generation in the year to 30 April 2023 ("FY2023"). The Group has continued to enjoy robust demand in the first months of the current financial year and there is good momentum across the business.

The Group is highly cash generative, with underlying cash generation of £191m after investing in net fleet replacement. After financing and tax, in FY2023 the Group had cashflows of over £137m available for investment in growth and return to shareholders, together with substantial headroom on its borrowing facilities. The business returned over £105m in the form of dividends and share buyback and invested over £130m in M&A and fleet growth, utilising the strength of the balance sheet.  At FY2023 close, leverage was 1.5x net debt to EBITDA, comfortably in the middle of the Group's targeted 1-2x range, with 62% of the Group's debt fixed, including private placement at 1.3% with maturities extending out to 2031 giving longer term rate protection. The overall cost of borrowings at 30 April 2023 was 3.1%.

The Board continually reviews the Group's allocation of capital, balance sheet position and strategic opportunities and believes that undertaking the Share Buyback Programme can deliver meaningful value for shareholders whilst keeping leverage at a prudent level. Purchases under the Share Buyback Programme will be made from time to time subject to market conditions, share price and trading.

As noted in connection with the Group's 2022 Share Buyback Programme, the Board considers that the liquidity in its issued ordinary shares is comparatively low. The Group has therefore agreed, in discussions with its executing broker, Numis Securities Limited ("Numis") that on any given trading day a buyback of shares instructed by the Company under the Share Buyback Programme may exceed 25 per cent. of the average daily trading volume on each trading platform on which Redde Northgate shares are traded. Where a buyback of shares exceeds 25 per cent. of the average daily trading volume on any trading platform, the Group will not fall within the exemption contained in Article 5(1) UK MAR.

Notes:

The Share Buyback Programme will be conducted pursuant to an agreement between the Company and Numis under which it is intended that Numis will purchase up to a maximum of 23,957,523 ordinary shares in the Company on the Company's behalf. Such purchases may also be conducted by Numis on an irrevocable basis within certain pre-set parameters that are agreed with Numis from time to time. The Share Buyback Programme will be conducted over the 12 months ending 28 July 2024. Under the Share Buyback Programme the repurchased shares will be held in treasury and/or cancelled. The purpose of the Share Buyback Programme is to reduce the capital of the Company.

The Share Buyback Programme is in accordance with the Company's existing general authority to purchase a maximum of 23,957,523 ordinary shares (which is subject to renewal at the Company's 2023 AGM). Any purchase of the Company's ordinary shares contemplated by this announcement will be carried out on a regulated trading venue and be executed in accordance with: (i) the Company's general authority to repurchase ordinary shares granted by its shareholders on 27 September 2022 and any further approvals to repurchase shares as may be granted by its shareholders from time to time; (ii) save as detailed above, Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052 (both as incorporated into UK domestic law by the European Union (Withdrawal) Act 2018); and (iii) Chapter 12 of the Financial Conduct Authority's Listing Rules.

Details of any ordinary shares repurchased will be notified to a Regulatory Information Service by the Company following any repurchase as required by the MAR and the Listing Rules of the FCA. The Company confirms that it currently has no unpublished Inside Information.

The person responsible for making this announcement on behalf of the Company is James Kerton, Company Secretary.

For further information contact:

Ross Hawley, Head of Investor Relations +44 (0) 204 566 7090

Buchanan

David Rydell/Jamie Hooper/Verity Parker +44 (0) 207 466 5000

Notes to Editors:

Redde Northgate is the leading integrated mobility solutions platform providing services across the vehicle lifecycle. The Company offers integrated mobility solutions to businesses, fleet operators, insurers, OEMs and other customers across the following key areas: vehicle rental, vehicle data, accident management, vehicle repairs, fleet management, service and maintenance, vehicle ancillary services and vehicle sales.

The Company's core purpose is to keep its customers mobile, whether through meeting their regular mobility needs or by servicing and supporting them when unforeseen events occur. With its considerable scale and reach, Redde Northgate's mission is to offer a market-leading customer proposition and drive enhanced returns for shareholders by creating value through sustainable compounding growth. The Group aims to achieve this through the delivery of its strategic framework of Focus, Drive and Broaden.

Redde Northgate services its customers through a network and diversified fleet of over 130,000 owned and leased vehicles, supporting over 700,000 managed vehicles, with over 170 branches across the UK, Ireland and Spain and a specialist team of over 7,000 employees.

Further information please visit the Company's website:

www.reddenorthgate.com