Redde (REDD)

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Working predominantly with insurance companies, insurance brokers, prestige motor dealerships, and large national fleet owners the Group provides a range of accident management, incident management and legal services.

25-Oct-2017 – 158.75p – £487.8m

Trading Update For The Period 1 July to 24 October 2017 – The positive start to the year has continued – LFL Revenue is up as are Profits (no indication of how much).

Decent growth here with a huge 7% or so dividend – Although it’s not particularly well covered (<1). With no Cash in the bank this just seems weird enough for me to, rightly or wrongly, steer clear.

18-Dec-2017 – 166.75p – £506.9m – PER 14.1

Trading Update – “Sales continue to show an increase over the corresponding period last year reflecting continued growth in trading volumes and as a consequence, trading profits are ahead of the corresponding period last year.”

This has been ranging between 140p and 200p for a couple of years. Fundamentals seem OK and this is a positive enough update. Going to adjust my view here – It’s going on my Watchlist around that 140p level.

Subsequently revised Watchlist price, 150p.

1-Mar-2018 – 166.2p – £505.2m – PER 13.9

Interim Results For The 6 Months To End December 2017 – Revenues up 11.5% to £253.3m (2016: £227.1m), Adjusted PBT up 11.2% to £21.9m, Adjusted EPS is 6.12p (2016: 5.24p) and the Interim dividend will be 5.50p (2016: 5.00 pence). H2 has started well.

Will leave it on my Watchlist, at the 150p level.

Subsequent note: With little growth forecast here and the Market Cap moving to £550m+ I decided to move to Neutral here for now.

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