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Redde Northgate PLC on Wednesday said profit was up in the first half, citing vehicle fleet size increases and strong continued demand.
The Darlington, England-based commercial vehicle hire firm said pretax profit for the first six months of financial 2023 ended October 31 was £101.9 million, up 42% from £71.7 million a year ago.
Revenue was also up in the first half, increasing by 14% to £696.3 million, from £612.9 million for the same period last year.
The company reported that its vehicle fleet had increased in size by 8%, reaching 130,000 vehicles, with strong growth in Spain, despite a shortage of light commercial vehicles in the UK and Ireland. Two major insurance contracts also went live during the period.
Chief Executive Officer Martin Ward said: ‘We have successfully delivered on our margin targets and implemented pricing increases across the business to help mitigate cost inflation. While mindful of the macro-economic backdrop, with a diverse and high-quality customer base well represented in resilient sectors, we are positioned to capitalise on growth opportunities across the business, in particular when LCV supply strengthens.’
Redde Northgate declared an interim dividend of 7.50 pence per share, up 25% from 6.00p per share a year ago. The company also reported that earnings per share increased by 52% in the first half, reaching 34.40p from 22.50p a year ago.
‘Demand for our services continues to be robust across geographies along with continuing strength in residual values. These factors underpin our confidence for the full year which is expected to be modestly above market expectations,’ the company said.
Redde Northgate shares were up 5.8% trading at 395.00p each on Wednesday morning in London.
By Harvey Dorset, Alliance News reporter
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