Redde reports on good start to financial year

Redde had a good start to the financial year, with a number of improved figures in its interim report to 31 December, published on Thursday.

The AIM-traded insurance and professional support group saw turnover of £165.2m, an increase of 35% from £122.2m. Ajusted EBIT rose 53% to £17.1m, and adjusted profit before tax grew 51% to £17.3m.

Redde reported a net operating cash flow to EBITDA ratio of 91%, from 114% a year earlier. Debtor days during the period were 95, from 108 days in 2014.

Total cash balances were £31.6m. up from £22.2m in 2014. The company had net debt of £9.1m, however, up from £2.9m in 2014.

Redde's adjusted basic earnings per share were 4.89p, up from 4.3p, and its statutory basic earnings per share were 4.49p, up from 4.14p.

The board declared an interim dividend of 4.5p, an increase of 12.5% over the 4p paid a year ago.

"The group has again delivered significant growth in revenue, earnings and dividend," said chief executive Martin Ward.

"The start of the second half has been strong and we continue to see new growth opportunities from within our markets," he added.

Ward said Redde was increasingly being seen as a leading partner of choice within the industry.

"Our protocol arrangements with insurers, which deliver early payments without frictional cost, have continued to grow and release value," he explained.

"We have extended our service offering with existing insurer partners during the year and the outlook for the full financial year is positive."