Redde Northgate PLC (LSE:REDD) saw its shares advance 7.7% to 392.50p in midmorning trade on Wednesday after the company said annual profits are expected to come in ahead of consensus estimates after a strong performance during the year.
The van hire company said customer demand for both vehicle rental and accident management remained resilient, with insurance contracts showing growth.
In the UK and Ireland, visibility for van supply is now improving, while in Spain, supply is nearly back to normal for both new vans and cars.
Traffic volumes and incidents are also returning to normal levels and transaction numbers across the company's integrated mobility platform are strong, reflecting new contract wins.
Redde Northgate forecast that adjusted pre-tax profit for the year to 30 April 2023 will beat market expectations for £155.2mln and come in at the top end of the £149.6mln-£164.4mln consensus range.
“As we look forward, the group is performing at record levels, there is more interest in our platform than ever before and we have a strong base from which to make strategic progress in the coming year," Redde Northgate CEO Martin Ward said in a statement.