Redde has agreed the acquisition of FMG, a provider of fleet management services, for a total consideration of £43.2m. There are a number of synergies which can be targeted in the enlarged group complementing independent revenue growth. We upgrade our EPS forecasts by 8% and 15% in FY16 and FY17 respectively. With an unchanged dividend policy, the yield returns to 6%+. A sustainable yield and potential for outperformance on delivery of revenue synergies are key attractions.
20 Aug 2015
Acquisition of FMG, yield returns to c.6%+
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Acquisition of FMG, yield returns to c.6%+
Redde Northgate PLC (21W:FRA) | 0 0 0.0% | Mkt Cap: 498.3m
- Published:
20 Aug 2015 -
Author:
Andrew Watson -
Pages:
7
Redde has agreed the acquisition of FMG, a provider of fleet management services, for a total consideration of £43.2m. There are a number of synergies which can be targeted in the enlarged group complementing independent revenue growth. We upgrade our EPS forecasts by 8% and 15% in FY16 and FY17 respectively. With an unchanged dividend policy, the yield returns to 6%+. A sustainable yield and potential for outperformance on delivery of revenue synergies are key attractions.