TIDMREDD 
 
15 March 2022 
 
                 This announcement contains inside information 
 
                              REDDE NORTHGATE PLC 
 
              ("Redde Northgate" or the "Group" or the "Company") 
 
                  Trading Update and Launch of Share Buyback 
 
        Stronger than expected performance with PBT ahead of consensus 
 
Redde Northgate plc (LSE:REDD), the leading integrated mobility solutions 
platform providing services across the vehicle lifecycle, today announces a 
trading update for the year ended 30 April 2022, ahead of its results for the 
year scheduled for July 2022. 
 
Group trading 
 
The Group continues to perform well and is trading ahead of expectations, 
driven by a strong performance across the business. Rental margin to the end of 
February was 15.8% in UK&I and 17.5% in Spain. 
 
Further to the interim results announcement on 1 December 2021, the Group has 
continued to de-fleet a lower number of vehicles due to rental demand and new 
vehicle supply constraints with used vehicle market values staying strong. 
 Vehicle supply constraints are expected to continue through FY 2023. 
 
Redde volume recovery was hindered in December and January by the Omicron and 
work-from-home restrictions. The Group has seen good improvement since the 
beginning of February and volumes are now running at circa 90% of pre-Covid 
levels. 
 
Based on the current trends the Board now expects full year underlying profit 
before tax for the year ended 30 April 2022 to be in the region of £150m, 
comfortably ahead of consensus[1] of £133.9m. The Board expects disposal 
profits to account for c.33% of the full year underlying profit before tax 
compared to c.43% in the prior year. 
 
Share buyback programme 
 
The Group's objective is to employ a disciplined approach to investment, 
returns and capital efficiency to deliver sustainable compounding growth. It 
continues to see exciting opportunities to deploy capital organically and has a 
good M&A pipeline.  Even after taking into consideration capital to fund 
organic growth, payment of dividends in line with the Company's dividend policy 
and acquisitions within the M&A pipeline, the Company has substantial headroom 
under its facilities and target leverage of 1-2x. 
 
As a result, the Company announces that it will launch a share buyback 
programme of the Company's ordinary shares for up to a maximum aggregate 
consideration of £30 million (the Programme), commencing on the date of this 
announcement. It is expected the Programme will be completed by 15 September 
2022. 
 
The Company has entered into an agreement with Numis pursuant to which it is 
intended that Numis will purchase up to a maximum of 24 million ordinary shares 
in the Company on the Company's behalf. Under the Programme the repurchased 
shares will be held in treasury. 
 
Notes 
 
The Programme is in accordance with the Company's general authority to purchase 
a maximum of 24,609,142 ordinary shares. Any purchase of the Company's ordinary 
shares contemplated by this announcement will be carried out on the London 
Stock Exchange and be executed in accordance with the Company's general 
authority to repurchase ordinary shares granted by its shareholders on 20 
September 2021, Market Abuse Regulation 596/2014 and the Commission Delegated 
Regulation (EU) 2016/1052 (both as incorporated into UK domestic law by the 
European Union (Withdrawal) Act 2018), and Chapter 12 of the Financial Conduct 
Authority's Listing Rules. 
 
The Group plans to announce a pre-close trading update for the year ended 30 
April 2022 in May 2022, ahead of the publication of its full year results 
scheduled for July 2022. 
 
The person responsible for making this announcement on behalf of the Company is 
Nick Tilley (Group Company Secretary). 
 
For further information contact: 
 
Buchanan 
 
David Rydell/Jamie Hooper/Tilly Abraham                        +44 (0) 207 466 
5000 
 
Notes to Editors: 
 
Redde Northgate is the leading integrated mobility solutions platform providing 
services across the vehicle lifecycle. The Company offers integrated mobility 
solutions to businesses, fleet operators, insurers, OEMs and other customers 
across seven key areas: vehicle rental, vehicle data, accident management, 
vehicle repairs, fleet management, service and maintenance, vehicle ancillary 
services and vehicle sales. 
 
 
The Company's core purpose is to keep its customers mobile, whether through 
meeting their regular mobility needs or by servicing and supporting them when 
unforeseen events occur. With its considerable scale and reach, Redde 
Northgate's mission is to offer a market-leading customer proposition and drive 
enhanced returns for shareholders by creating value through sustainable 
compounding growth.  The Group aims to achieve this through the delivery of its 
strategic framework of Focus, Drive and Broaden. 
 
Redde Northgate services its customers through a network and diversified fleet 
of over 120,000 owned and leased vehicles, supporting over 600,000 managed 
vehicles, with more than 170 workshop, body shop and rental locations across 
the UK, Ireland and Spain and a specialist team of over 6,000 automotive 
services professionals. 
 
Further information please visit the Company's website: 
 
www.reddenorthgate.com 
 
This announcement contains inside information as defined in Article 7 of the 
retained EU law version of the Market Abuse Regulation No 596/2014 ("UK MAR") 
and has been announced in accordance with the Company's obligations under 
Article 17 of UK MAR. 
 
[1]Current Company compiled analyst consensus for FY 2022 underlying profit 
before tax is £133.9m, see www.reddenorthgate.com 
 
 
 
END

(END) Dow Jones Newswires

March 15, 2022 03:00 ET (07:00 GMT)

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