By Najat Kantouar
Redde Northgate, a leading commercial vehicle rental provider in the UK, announced a decrease in pretax profit for the first half of fiscal 2024. This decline was primarily attributed to higher interest costs, even though the company experienced significant revenue growth due to strong demand.
During the six-month period that ended on October 31st, pretax profit amounted to £97.4 million ($122.7 million), compared to £101.9 million from the previous year. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at £220.0 million, a notable increase from £198.8 million.
Redde Northgate reported a 30.9% growth in revenue, reaching £911.3 million, up from £696.3 million in the corresponding period. This impressive performance was driven by securing new contracts and possessing a robust pipeline of prospects. Additionally, the company experienced a 6.7% rise in vehicle hire revenue.
Chief Executive Officer Martin Ward expressed confidence in the company’s future outlook, stating, “With visibility of earnings underpinned, the Board is confident on the outlook for the second half of the year and now expects to be delivering earnings modestly ahead of market consensus on a full-year basis.”