Redde publishes ‘strong’ results

Claims management providers, Redde has published what it classed as ‘strong’ results for the year ended 30 June 2016.

In its statement, the business claimed ‘another year of strong growth’ with a 53% increase in turnover of £379.2m (2015: £248.7m) with a like for like (LFL) increase of 28%. Adjusted earnings before interest and taxes (EBIT) were £34.5m (2015: £22.3m), an increase of 55%. A net operating cash inflow to earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio of 98% (2015: 116%) was reported with total cash balances of £34.6m (2015: £27.6m adjusted for £41.0m cash spent on acquisition) on a net debt of £5.2m (2015: £1.3m adjusted for £41.0m cash spent on acquisition).

Operational highlights reported included a 14.3% like for like growth in credit hire cases with total number of hire days increasing by 15.6%. It also experienced a 71.7% increase in number of all repair cases (excluding FMG).

Martin Ward, chief executive officer, said, ‘This is a strong set of results driven through the delivery of our growth, profitability and sustainability (GPS) strategy which continues to be our focus. We have seen good levels of LFL growth and the performance of FMG, acquired in October 2015, has been solid. The new period has started well and together with the pipeline of opportunities the board remains confident on the prospects of the group.’