Redde Northgate PLC on Wednesday posted improved yearly earnings, helped by ‘structural growth’ in outsourcing and new contracts.

Pretax profit in the 12 months to April 30 jumped 98% to £132.7 million from £67.2 million. Revenue rose 12% to £1.24 billion from £1.11 billion.

Earnings before interest and tax were up 80% to £150.8 million from £83.8 million, and earnings per share rose 55% to 41.3 pence from 26.6p.

The firm noted multi-year contract wins with Tesco PLC, Admiral Group PLC and Saga PLC’s Acromas Insurance.

Redde lifted its dividend by 36% to 21.0p from 15.4p.

The Darlington, England-based commercial vehicle hire firm added it has made a decent start to the new year.

It said: ‘The business has traded well across a challenging and volatile economic backdrop in recent years, supported by the structural growth in outsourcing by an increasingly broad customer base. We are enjoying the benefit of an enhanced mobility solutions platform and continue to proactively manage inflation, resource availability and supply chain constraints.

‘Demand remains high for the group’s rental offering and as a result, the business expects to retain more of its van fleet this year whilst limiting disposals, with the car fleet growing in line with the business strategy. The new financial year has started well and the business is well positioned in its addressable markets.’

Redde Northgate shares were 1.4% higher at 340.25 pence each in London on Wednesday morning.

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