Redde Northgate FY profits rise amid strong demand

Commercial vehicle rental provider Redde Northgate reported a rise in full-year profit and revenue on Wednesday amid strong customer demand.

In the year to 30 April, reported pre-tax profit was up 98% at £132.7m, with group revenue including vehicle sales up 12% on the previous year at £1.24bn. The jump in revenue reflects strong customer demand, recovery post-Covid in business volumes and traffic activity, and lower de-fleeting disposal activity, the company said. Revenue excluding vehicle sales was 24.3% higher on the year.

Meanwhile, underlying pre-tax profit was ahead 62% at £151.3m, supported by margin growth and disposal profits.

Redde Northgate hailed "significant" new multi-year contract wins, including Tesco and Admiral in the first half and Acromas Insurance (Saga) in the second.

Chief executive officer Martin Ward said: "We began FY2022 with good momentum and this continued through the period with strong performance across the business and our key financial metrics were strongly positive for the year.

"Rental margins improved in both Northgate UK&I and Northgate Spain, and the Redde business contribution grew substantially as it found a new normal for volumes at approximately 90% of pre-Covid-19 levels together with support from new business wins."

The company said the new financial year has started well and the business is well positioned in its addressable markets.

"While the board is mindful of the economic uncertainty it remains confident that it has the right strategy to deliver long term sustainable value."