Business
Pre-close Trading Statement
Pre-close Trading Statement.
About this update from Zigup Plc
[{"type":"text","content":"\n \n 12 May 2021\n This announcement contains price sensitive information\n REDDE NORTHGATE PLC\n (“Redde Northgate” or the “Group” or the “Company”)\n Pre-close Trading Update\n Stronger than expected performance with PBT ahead of consensus; entering new financial year in a position of strength\n Redde Northgate plc (LSE:REDD), the leading integrated mobility solutions platform providing services across the vehicle lifecycle, today announces a pre-close trading update for the year ended 30 April 2021, ahead of its results for the year scheduled for 7 July 2021.\n Group trading\n Further to the interim results announcement on 8 December 2020, momentum has continued to build across the Group in the second half of FY2021. Against the backdrop of COVID-19, including the most recent lockdowns in the UK, total closing VOH has grown 2% across the Group in the second half, comprising 4% growth in UK&I, with Spain broadly flat. Closing VOH is now higher than prior year by 13% in UK&I, 9% in Spain and 11% in the combined Group. The used vehicle market has remained strong in LCVs (particularly in the UK) delivering higher disposal profits than expected. Redde continued to be impacted by reduced volumes through the period, but post the easing of lockdown restrictions in early April, volume indicators are now showing a significant pick up.\n Based on unaudited results, underlying revenues (excluding vehicle sales) were approximately 51% higher than the prior year, and total Group revenues (including vehicle sales) were approximately 43% higher than the prior year. The increase in revenues year on year is primarily attributable to the inclusion of Redde since the Merger on 21 February 2020, as well as LCV rental and sales growth. \n As a consequence of the stronger than expected performance in H2, the Board now expects underlying PBT for FY2021 to be moderately above the top end of the current range of analyst estimates[1] and not less than £92m. \n Focus, Drive and Broaden\n The Group continues to make excellent progress on delivering its strategic initiatives through the Focus, Drive and Broaden framework. To date, it has achieved Merger integration savings of £14.6m against the FY2022 target of £15m. Together with additional permanent cost savings achieved of £4.2m, the total annualised run rate is £18.8m, ...