StockMarketWire.com - Commercial vehicle hire and accident support group Redde Northgate posted a large rise in annual profit underpinned by a full-year contribution from the Redde assets following a merger its Northgate.

Pre-tax profit for the year through April jumped to £67.2 million, up from £13.5 million year-on-year, as sales climbed 50% to £879.7 million.

Underlying pre-tax profit rose 58% to £93.2 million and the company hiked its dividend 18% to 15.4p per share.

A merger integration savings target for the 2022 financial year of £15 million was increased previously from £10 million and fully achieved as at the end of Jun, 10 months ahead of schedule.

A further £5.5 million of permanent annualised cost savings were also achieved, giving a total of £20.5 million of annual run rate savings.

'This year has been a challenging year but also one of exceptional progress against our focus, drive and broaden strategic framework,' chief executive Martin Ward said.

'Our next strategic priority is to grow revenue under our drive phase and to utilise the services and infrastructure platform we have built to extend our market reach.'

'There is significant sustainable compounding growth and quality earnings potential in the combined business.'

'The actions and measures we are taking are already creating value which will be further enhanced as we deliver on our priorities.'

'Recent trading has been strong and we enter the 2022 financial year from a position of strength.'




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