30th Oct 2014 10:04
LONDON (Alliance News) - Redde PLC Chairman Avril Palmer-Baunack Thursday told the company's shareholders that trading profits in its fiscal first quarter were ahead of the company's expectations and above the year-earlier quarter, and early indications suggest the trend has continued in October.
In a statement ahead of the auto services company's annual general meeting, Palmer-Baunack said its NewLaw legal services business is trading in line with its expectations, while sales in the accident management business are up on the year due to stronger trading volumes.
"We are seeing an increasing level of new business opportunities across the group and because our new business model is more capital-efficient than in the past we are able to take advantage of opportunities to grow revenue and profits with no undue increase in working capital," the non-executive chairman said.
Redde specialises in accident management support, legal services, fleet management and policy fulfilment services for the auto insurance and dealership sector.
Palmer-Baunack told shareholders that cash generation has continued to be positive, and the company had net cash of GBP48.6 million on September 30, up from GBP41.6 million at the end of June. Total cash balances at the end of September stood at GBP66.2 million.
Palmer-Baunack has had a busy week. On Wednesday, vehicle tracking systems company Quartix Holdings PLC, which Palmer-Baunack also chairs, said it will list on AIM next week after its selling shareholder raised GBP11.4 million in a share placement.
Earlier in the week, she said she would list and chair Haversham Holdings PLC, a new vehicle which aims to acquire and develop "substantial" businesses in the UK and European automotive, support services, leasing, engineering or manufacturing sectors, targeting acquisitions with an enterprise value of between GBP250 million and GBP1 billion.
Redde shares were up 3.2% at 74.81 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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