Subject to approval by the Redde Northgate Plc Board, the final dividend proposed of 16.5p per share (2022: 15.0p) will be paid on 29 September 2023 to shareholders on the register as at close of business on 1 September 2023.
Including the interim dividend paid of 7.5p (2022: 6.0p), the total dividend relating to the year would be 24.0p (2022: 21.0p). The dividend is covered 2.3x by underlying earnings.
Other financial highlights include:
Group revenue growth of c.20%; with growth in Redde activity from existing and new contracts, alongside a managed increase in average hire rates; revenues ex-vehicle sales up 22%
Reported PBT of £178.7m; benefitted from £46.5m depreciation adjustment, offset by NewLaw impairment of £13.5m reflecting strategy prioritisation; no impact on underlying results or cash
Underlying PBT up over 9% to £165.9m due to strong operational performance and volume growth, partially offset by higher interest costs
Steady state cash generation strong at £191.5m; free cashflow reflects investments in fleet and working capital to support new multi-year contracts, and investment in Blakedale
Healthy balance sheet, over £290m of facility headroom; bank facility extended out to 2026; 1.5x leverage at midpoint of stated target 1-2x range; FY23: 62% fixed, including private placement at 1.3%
ROCE improved by 0.2ppt to 14.1%; reflecting focus on maintaining strong cost control, disposal profits and disciplined capital allocation
