StockMarketWire.com - Vehicle hire group Redde Northgate said it would provide further dividend guidance when it announced its annual results in September.

The company said revenue for the year through April rose 5%, owing to a positive performance from Redde that helped offset a 4% fall at Northgate.

Profit margins were in line with expectations up until the end of February, but had deteriorated in March and April.

Redde Northgate reiterated that it had provided flexibility to its rental customers, helping many of them retain vehicles during the Covid-19 crisis.

'Whilst in place, the impact of this scheme on group rental revenue is approximately £3-4m per month,' it said.

'However, not all customers could justify continuing with all their rental vehicles and have naturally made some returns in these circumstances.'

Redde Northgate said it planned to release its results on 16 September.

'The board is aware of the importance of dividends to its shareholders and, after careful consideration of the factors impacting this decision, will provide a further update at the time of the preliminary announcement of results,' it said.


At 9:34am: [LON:REDD] Redde Northgate PLC share price was +5.3p at 180.1p



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