Vehicle hire firm Redde Northgate says demand for vans has outstripped supply as insurance and leasing contracts have helped drive growth.
The Darlington-based operator, which specialises in supplying replacement commercial vehicles for customers who have experienced an accident or breakdown, reported a near 20% rise in revenue in the 12 months to the end of April, to £1.49bn, as well as a 9.7% rise in pre-tax profits to £178.1m. Investors on the London Stock Exchange were told Redde has increased its fleet by 3% to 130,000 and that a scarcity of light commercial vehicles had supported values but held back potential rental growth.
Performance was strongest across the group's operation in northern Spain where revenue attached to vehicle hire and vehicle rental grew 14.6% and 24% respectively. Redde said the country's strong economic growth had contributed to increased demand and that its main concern was sourcing vehicles to satisfy orders in sectors such as infrastructure and support services.
