Redde Northgate has record revenue and profit as soaring van hire demand outstrips supply
Vehicle hire firm Redde Northgate posted a record financial performance this morning on the back of strong vehicle hire demand, with appetite for light commercial vehicles (LCV) continuing to “outstrip supply.”
The Darlington-headquartered firm saw revenues of over £1.4bn, up 19.8 per cent year-on-year with pre-tax profits at £178.7m, up 34.7 per cent.
Redde Northgate – who provide a host of services such as vehicle provision, fleet support and body shop repair – saw its total fleet number rise to three per cent and over 130,000 vehicles, but noted the scarcity of LCVs.
Martin Ward, CEO of Redde Northgate, said: “This is an excellent set of results and we are proud of what the Group and all our colleagues have achieved this year, delivering record revenue and profits and strong levels of cash generation.
He added: “Vehicle supply is improving but remains below the high levels of customer demand; our financial strength provides an ability to react quickly to supply opportunities as they arise.”
Acquisitions of Blakedale, who supply specialist traffic management and support vehicles, and frozen delivery van specialist FridgeXpress have also helped it deliver its goals, the company said this morning, with customers for the former rising 28 per cent since it was snapped up.
Ward added: “Our acquisitions of two specialist vehicle providers since the start of 2023 have taken us into new areas and broadened our UK rental customer base and we continue to review other exciting growth opportunities.”
“Together with our strong pipeline of new business including an additional large leasing company multi-service contract due to go live in the autumn, we are confident in continuing to deliver further stakeholder value.”
Andy Murphy, director at Edison Group, said that this was a “very encouraging set of results.”
“Redde Northgate CEO Martin Ward has set out a bold strategy of acquisition for the company – and is clearly betting on the continued recovery of supply chains, consumer demand, and international trade.
He added that the ongoing shortage of commercial vehicles may “inhibit future growth prospects,” and – when coupled with continued problems recruiting HGV drivers and trade frictions between the UK and EU – the firm was still “operating in a far from ideal market environment.”