Redde has delivered positive interim results reporting clear benefit from the new insurer relationship secured in late 2016. Underlying growth in H1 has been sustained into H2 thus far. Innovation and investment in value-add for partners continue. The board has declared a 5.5p interim dividend – slightly ahead of our 5.25p forecast. We upgrade EPS by 8% in FY18e and 3% in outer years. We see value in the shares – a 15x PER implies a 190p/share intrinsic value, whilst a 5% yield equates to 240p/s ....
01 Mar 2018
Growth from new relationship, 3-8% EPS upgrades
