5th Sep 2019 10:34
(Alliance News) - Redde PLC on Thursday said profit rose in its most recent financial year, as more credit hires and repairs, as well as increased activity in two businesses, helped to push up revenue.
Redde provides mobility, incident management, and legal services for motorists and insurers. Credit hires involves providing replacement vehicles while cars are repaired.
Its shares were up 3.2% at 111.64 pence in London in morning trade.
The company posted a GBP41.7 million pretax profit for its year ended June 30, 7.5% above its GBP38.8 million profit the year before.
Revenue climbed 12% to GBP589.7 million from GBP527.0 million, which Redde said reflected 9.4% sales growth among credit hires, as well as a 5.2% rise in total repairs. This was also attributed to "higher activity within the group's fleet and incident management businesses".
Redde Chief Executive Martin Ward said: "The ongoing strategy of the group is sustainable and profitable growth. This year we have seen record revenues and further underlying growth in adjusted profit before tax. We have broadened the reach of the group and, through the continuing benefits of past acquisitions, diversified our income streams. We continue to seek further opportunities to build scale and diversify into related markets where the returns and investment case are attractive."
The company intends to pay a final dividend of 6.15p per share, which would bring the total for the year to 11.65p, matching the total for financial 2018.
Ward commented: "Going forward, the board intends to at least maintain the absolute dividend amount. The group is well funded and has substantial unutilised funding lines to support its trading and future growth.
"We have already reported the loss of an insurer account ending in November and a renewal, on a long-term basis, with one of our large insurers. The group has also won several new business contracts which will come on line in the current financial year. We have a great team of motivated people to support the group's aims and believe there is ample opportunity to further develop the group's services."
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