Redde has issued a brief trading statement this morning which indicates that the positive case volume growth seen in early H2 has continued through Q3 and into April to date. We leave our forecasts unchanged at this point but see upside if this trend continues through to the end of FY16e (y/e June). With a 100% payout policy, dividend yield is a key valuation metric, currently 6.2% FY16e and 6.8% FY17e, on a full year contribution from the FMG acquisition. A 5% dividend yield (FY17e) points to a >200p intrinsic valuation. Recent price weakness offers a good buying opportunity.
