Business volumes at Redde, the Bath-based specialist vehicle accident management firm, have almost returned to their pre-pandemic levels – with growth expected to accelerate over the coming year, according to its parent group.
Redde Northgate, which was formed two years ago from the merger of Redde and light commercial vehicle hire business Northgate, also told shareholders in a trading update that margins had been in line with expectations while underlying cashflow remained strong.
Redde, formerly known as Helphire and an innovator in accident management, had been hit by lower business level as Covid-linked lockdowns kept drivers off the roads, leading to fewer crashes.
It had been on the road to recovery last year when the Omicron variant and work-from-home restrictions put the brakes on its recovery.
In its latest update, Redde Northgate said its volumes continued to be around 90% of those prior to Covid but added that it was experiencing “longer hire lengths due to the impact of macro challenges in supply chains for parts in the wider vehicle service, maintenance and repair process”.
It also said that while cost inflation had been felt across the group, it continued to be carefully managed
Based on unaudited results, it said underlying revenues - excluding vehicle sales – were approximately 24% higher than last year with total group revenues - including vehicle sales – around 12% higher than the prior year.
The statement added: “As has been widely reported, global new vehicle supply has slowed and, consequently, demand for used vehicle sales has remained strong, which has positively impacted residual values.
“We expect new vehicle supply to continue to be tight over the full year 2023 due to ongoing macro events, with some moderation of used vehicle pricing.”
We have focused on the effective management of both the supply of new vehicles to the business and the number of vehicles disposed, which has resulted in average Vehicles on Hire ('VOH') growing around 8% year on year.
CEO Martin Ward said: “We have delivered a very strong trading result this financial year. The breadth of services and products offered through our mobility platform has extended our reach with existing and new partners.
“We have continued to enhance our model, with multi-year service contracts providing ongoing repeatable revenues and earnings.
“With significant further opportunity for growth, and building on the strong performance and momentum in the business, we look to the future with confidence."
The group, which has an extensive network and diversified fleet of more than 110,000 owned vehicles and 400,000-plus managed vehicles in more than 100 branches across the UK, Ireland and Spain, expects to publish its financial results for the year to 30 April on 6 July.
