Redde Northgate PLC on Thursday said it was confident of delivering on its annual guidance, telling investors that its performance is expected to be in line with previously upgraded expectations.
In April, the Darlington, England-based commercial vehicle hire firm said it expected adjusted pretax profit for the year ending April 30 to be ahead of market consensus and around the top end of consensus range. Company-compiled consensus indicates that full-year adjusted pretax profit will be £155.2 million, in the range of £149.6 million to £164.4 million.
The firm said on Thursday that, based on unaudited results, underlying revenue excluding vehicle sales is around 22% higher than last year. Total group revenue including vehicle sales is also expected to be around 22% higher.
For 2022, Redde reported annual revenue of £1.24 billion, and pretax profit of £132.7 million.
Redde also said on Thursday that it had completed its acquisition of FridgeXpress, a provider of specialist refrigerated vehicles to a broad range of commercial customers in the UK.
The acquisition is expected to be earnings enhancing in its first full year of ownership.
‘With FridgeXpress, we continue our record of acquisitions offering significant potential for growing both customers and fleet. It has an impressive track record and an excellent reputation in its specialist sector and this acquisition extends our UK capabilities,’ said Chief Executive Officer Martin Ward.
‘In respect of the unaudited results, we are very pleased to have maintained such a strong trading performance through FY23, whilst executing the strategy we set out to build a broad platform of integrated mobility services. Demand continues to be robust as we start FY24 and as we continue to make progress with our strategy the group sees a number of exciting opportunities across the business to create long-term value for shareholders.’
The firm will publish its full-year results on July 5.
Redde Northgate shares were trading 1.2% higher at 390.50 pence each in London on Thursday morning.
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