24th Mar 2020 10:40
(Alliance News) - Redde Northgate PLC on Tuesday said its financial performance may be hurt by government responses to the spread of Covid-19 in the UK and Europe, such as the lockdown announced by No 10 on Monday.
The vehicle rental and services firm - created through the merger of peers Northgate PLC and Redde PLC - said trading until the end of February was in line with expectations. However, it said it will suspend any further forward guidance as recent developments have created uncertainty regarding its forecast for financial 2020 to the end of April, and for financial 2021.
Redde Northgate also said it is taking steps to conserve cash to allow it to withstand any prolonged economic downturn. Measures taken include limiting spend to essential purchases only. As at the end of February, the company had GBP200 million of headroom on its bank facilities.
"Business performance to the end of February has been in line with our expectations, but we are now faced with uncertain challenges. We have maintained and extended operational capability and are ready to continue servicing our customers to keep them mobile. The matters that we can control on cost and cash are being managed carefully. The headroom the group has is significant, and we will continue to manage our resources carefully through the coronavirus crisis," said Chief Executive Martin Ward.
Separately, Redde Northgate said Bill Spencer, Claire Miles and Fernando Cogollos have stepped down from their roles of non-executive directors, effective immediately.
"I would like to thank Bill, Claire and Fernando for their contribution to Northgate during their time on the board, and particularly for their support during the merger with Redde PLC. We wish them well for the future," said Non-Executive Chair Avril Palmer-Baunack.
Shares in Redde Northgate were trading 5.6% higher at 127.80 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
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