Redde Northgate announce an increase in interim dividend to 7.5p

DividendMax Ltd.

Redde Northgate announce an increase in interim dividend to 7.5p

The Redde Northgate Board has declared an interim dividend of 7.5p per share (H1 2022: 6.0p) to be paid on 13 January 2023 to shareholders on the register as at close of business on 16 December 2022. The interim dividend represents 50% of the final dividend for the year ended 30 April 2022 in line with previous guidance.

Other financial highlights include:

Group revenue growth up 14%, reflecting strong traffic and accident management volumes, fleet growth, pricing increases, and continued robust residual values

Reported PBT of £101.9m up 42%; underlying PBT up 6% to £83.7m due to strong operational performance, partially offset by lower disposal profits and higher interest

Steady state cash generation improved 30% to £121.2m; free cashflow reflects investments in fleet, working capital for new insurance contracts, and the Blakedale acquisition

Strong balance sheet with over £300m of facility headroom and bank facility extended out one year to 2026; 1.6x leverage (H1 2022: 1.5x) well within our stated target 1-2x range

Shareholder returns: 25% increase in interim dividend to 7.5p; £60m share buyback programme running since March, £56m spend in total by end-November 

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