Local lockdowns have hit the post Covid-19 recovery at Bath-based specialist vehicle accident management group Redde as drivers in those areas make fewer journeys.
But its sister businesses in its parent group Redde Northgate have had a stronger bounce back while last month’s £11m acquisition of accident repair services firm Nationwide is already showing benefits.
Redde Northgate gave the trading update as it staged its first AGM since it was formed in February from the merger of Bath-based Redde, which provides accident management, legal and other mobility-related services, with Darlington-based light commercial hire business Northgate.
The merged group provides mobility and automotive services to a wide range of businesses and customers spanning the vehicle life cycle across vehicle supply, service, maintenance, repair, recovery, accident and incident management and disposal through sale or salvage.
It 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.
The group said in the first five months of its 2021 financial year it had seen “sequential monthly improvements” in trading, with a recovery in the number of vehicles on hire slightly above pre-Covid levels, strong used vehicle prices and disposal profits.
However, it added that there had been a slower than expected recovery in Redde’s volumes due to several factors including local and regional lockdowns.
Redde Northgate’s acquisition of Nationwide from the failed firm’s administrators included 77 of its 102 bodyshop sites along with a fleet of vehicles. Some 2,300 of Nationwide’s staff were also taken on.
The group said Nationwide continued to perform well and the launch of a new incident and accident service into the Northgate customer base was well advanced.
“Our stated strategy to deliver increased products and services through an integrated mobility service platform is gaining good traction and we are progressing the integration of the business and assets purchased from Nationwide Accident Repair Services which will now trade as FMG Repair Services,” the group said.
Redde was known as Helphire until 2014.
