AIM-listed firm says trading is ahead versus same period last year
Companies: Redde Northgate PLC
Strong trading performance at the start of the year has continued through December for automative service and insurance provider Redde Plc, with the company now saying its profits are ahead of management's previous expectations.
The firm reported continuing sales growth in the quarter, leading to an increase versus the same period last year, due to organic growth and the acquisition of FMG on 27 October 2015:
"As a consequence, trading profits remain ahead of our own expectations and the corresponding period last year."
Based upon today's update, the firm says it expects to pay out an interim dividend of no less than 4.9p/share for the year, an 8.9% increase on the previous financial year.
Broker N+1 Singer said Redde had delivered another strong update, and confirmed that with its 100% payout policy, the new dividend suggested H1 earnings were in line with its forecasts:
"Redde’s FY17e yield is currently 6.7% and underpinned by a growing customer base with continued volume growth, alongside customer acquisition opportunity from an enlarged offering."
Redde's share price increased 5% as the market opened on Thursday.
