Redde has reported that H1 trading performance has remained strong since the AGM statement and that trading profits have grown materially to date vs H1’15. We make a small upgrade to our earnings forecasts (+2%) and there is scope for further upgrades with a number of key trading weeks remaining in Q2/3. We continue to see an income growth opportunity on forecast upside, as Redde seeks synergies from the FMG acquisition, which we do not currently assume in our model. The prospective dividend yield remains attractive at 5.2% (FY16e)
