Vehicle hire firm Redde Northgate has announced the acquisition of a specialist hire company after saying that its revenues are set to rise.
The Darlington firm has issued a trading update in which it says its unaudited full year results were in line with the upgraded expectations made last month and likely to be 22% up on the year previously.
In the statement, it also announced the acquisition of FridgeXpress (UK) Limited, which provides specialist refrigerated vehicles to commercial customers in the UK. No value was given for the deal.
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FridgeXpress was founded in 2008 and based in Rugby, with a fleet of 600 chilled and freezer vans that it provides to more than 100 customers nationwide, principally in the pharmaceutical and food sectors. Redde Northgate said the deal was expected to be earnings enhancing in its first full year of ownership.
Martin Ward, CEO Redde Northgate, said: “With FridgeXpress, we continue our record of acquisitions offering significant potential for growing both customers and fleet. It has an impressive track record and an excellent reputation in its specialist sector and this acquisition extends our UK capabilities.
“In respect of the unaudited results, we are very pleased to have maintained such a strong trading performance through FY23, whilst executing the strategy we set out to build a broad platform of integrated mobility services. Demand continues to be robust as we start FY24 and as we continue to make progress with our strategy the group sees a number of exciting opportunities across the business to create long-term value for shareholders.”
The company said it had been impacted by cost inflation but added that it had “significant headroom” on its committed facilities with net debt at the year-end of £694m. It is planning to announce its preliminary results on July 5 and will release its Annual Financial Report and Sustainability Report shortly afterwards.
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