Redde Northgate PLC has announced a strong start to the financial year 2024, with good momentum and healthy demand across its business. Rental demand in the UK and Ireland is outstripping supply, although vehicles are starting to arrive in greater quantities. Spain is also experiencing supply and demand momentum, leading to growth and a reduction in average fleet age. The company remains focused on supporting rental sectors with strong long-term growth prospects. Residual values are significantly above historic levels, resulting in ongoing elevated disposal profits.
The company has secured new contract wins, including a multi-year contract with major UK leasing fleet provider Lex Autolease. The robust pipeline of contracts supports growth in the business as more customers recognize the benefits of the integrated platform. The board is confident in the group's strategy and prospects, and its longstanding business model of operating with a prudent level of leverage.
Redde Northgate has implemented a share buyback program of up to £30 million, with approximately 1.1 million ordinary shares already purchased. The company's disciplined capital allocation strategy is supported by its debt refinancing and debt maturities extending out to 2031. Shareholders are being asked to approve a final dividend of 16.5 pence per share, resulting in a total ordinary dividend payable for the year ended April 30, 2023, of 24.0 pence per share.
The company's next scheduled trading update will be its interim results for the six months ended October 31, 2023, expected on December 6, 2023. Redde Northgate has also published its second annual Sustainability Report, which outlines its progress over the past year and its efforts to run a responsible business.
Redde Northgate is the leading integrated mobility solutions platform, offering services across the vehicle lifecycle. The company provides integrated mobility solutions to businesses, fleet operators, insurers, OEMs, and other customers. Its services include vehicle rental, vehicle data, accident management, vehicle repairs, fleet management, service and maintenance, vehicle ancillary services, and vehicle sales. The company aims to keep its customers mobile and drive enhanced returns for shareholders through sustainable compounding growth.