Northgate Live Discussion

Ripley94 21 Feb 2020

LSE:NTG NTG… XXXX ( D ) Orders have 355 more @ 286.18 … from Reddle

Ripley94 04 Dec 2019

LSE:NTG NTG… XXXX 350p day before RNS of Merger. now 302p ! ( -14% )

TX2 29 Nov 2019

LSE:NTG I don’t see the logic in this deal for Northgate;I will be interested to see activist fund Crystal Ambers reaction to it as the present value ascribed to the shares post merger proposal is well below the average price they paid for their circa 7% holding in Northgate.CA have been trying to remove/shake up the board for some time.It is somewhat below my purchase cost as well! Northgate’s board have few shares in the company so they have a hard sell…

Ripley94 29 Nov 2019

LSE:NTG NTG… XXXX Rns… MERGER… Market liked it at open but down 7% my midday … Northgate Hails “Solid” Interim Results As Announces Redde Merger Deal from Alliance News | 29th November 2019 08:58 (Alliance News) - Vehicle services firms Northgate PLC and Redde PLC agreed Friday to an all-share merger to create a firm with a market capitalisation of nearly GBP800 million, whilst Northgate also reported “solid” interim results. Shares in Northgate were 3.3% lower at 338.51 pence in London on Friday. Redde up 5.9% at 115.00p. Under the terms of the merger, each Redde shareholder will receive 0.3669 new Northgate shares for every Redde share held. After completion, Northgate shareholders will control 54% of the combined company and Redde investors the remainder. Northgate and Redde explained the merged firm - to be called Redde Northgate PLC - had a “compelling strategic logic” which will deliver cost savings as well as establish a complimentary and comprehensive suite of mobility services. “The combination will create a champion automotive services business with scale, reach and resources to provide mobility solutions to a broad customer base,” Northgate Chair Avril Palmer-Baunack said. “The merger has compelling strategic logic - delivering an enlarged platform providing enhanced mobility solutions for vehicles and their users throughout the automotive services value chain,” Palmer-Baunack added. “Both boards have identified significant cost synergies and opportunities for revenue cross-sell. This merger represents an attractive opportunity for both companies to further enhance their market-leading positions, delivering synergies, customer benefits and shareholder value.” Northgate and Redde expect the combination to result in annual cost savings of around GBP10 million by the end of the second year following completion. In a separate announcement, Northgate provided its interim results. For the six months ended October, pretax profit declined 14% to GBP24.8 million from GBP28.7 million the year prior. This was after revenue fell 4.3% to GBP357.8 million from GBP374.0 million the year before. Results were hurt by a steep fall in vehicle sales during the period, down 20% to GBP91.9 million from GBP114.5 million the year before. Vehicle hire revenue rose 2.5% to GBP265.9 million from GBP259.5 million a year prior. “These solid results in this period reflect the strength of the core business in rental operations in H1 against a backdrop of political and economic uncertainty in both markets,” Northgate Chair Avril Palmer-Baunack said. Northgate proposed a 6.3 pence per share interim dividend, up 1.6% from 6.2p a year prior. “The business continues to look to adjacent sectors to build on its solid rental foundations so that it meets the demands of its customers who are increasingly looking for a full end-to-end product offering”, Palmer-Baunack added. By Ahren Lester; [email protected] Copyright 2019 Alliance News Limited. All Rights Reserved. corporate actionsdividends & buybackssignificantcompany outlookIPOs & new issuesAIMcompaniesFTSE Mainearnings

TX2 11 Apr 2018

Andrew Page Major shareholder Crystal Amber have gone on public record that they are " not happy" with Chairman Andrew Page.......

NewPygar 22 Mar 2018

Re: Communication The loss on disposal is the difference between the buying and selling price, the difference between this figure and and the depreciation charge gives the profit(loss)!

Graham Donbavand 22 Mar 2018

Re: Communication I am confused by the table, why are they forecasting losses on disposal, if they expect losses on disposal surely they should use a higher depreciation rate so the expected profit/loss on disposal is 0?

Self made hedge operator 22 Mar 2018

Communication I sold out of these earlier in the week.I don't have a view on them going forward as I feel the excellent near term prospects in Spain are countered by the UK slowdown.I am disgusted about the communication 'strategy'.Why announce the change in sales strategy and then wait ONE MONTH to announce that it has a quantifiable impact on the depreciation costs. Shouldn't this have been identified at the time?Does not sound like a company that has its eye on the ball.

viko 07 Mar 2018

Fill your boots with bca shares They on there way back up

Self made hedge operator 25 Feb 2018

Re: My Take The point around resale prices sounds very plausible.The good thing is that they are getting to grips with the business.Plainly the UK is slowing down - which could be a read-through for other companies but I have confidence that the current management we shape the business accordingly.We have good momentum in Spain so that should balance matters out and we have the dividend being maintained/progressed.A good value stock and will be re-investing my divis when they come along.The bounce on Thursday makes me think that the weak holders have got out.Has been a rough ride the last 6 months, though.

Graham Donbavand 25 Feb 2018

Re: My Take Yes that makes sense. My previous example doesn't really work as if the depreciation was correct there would be 0 profit/loss on sale.In any case, logically, the new longer holding period should improve things so the 25% fall in profit expected must be due to less profitable business and the longer holding period may be just postponing losses on sales due to under depreciation until next year.Not good.

Meanbugger 24 Feb 2018

Re: My Take My take is the value of 3 year old vans has collapsed and rather than dump them on an unwilling market it makes more sense to keep them an extra year and sell them for less but at less of a loss against their depreciated value or possibly even a profit.Using vans of an older average age will also allow them to discount their prices to compete more effectively. Everyone's a winner apart from customers who don't negotiate a better price for a slightly older vehicle.The advantage of taking this approach is the avoidance of a massive provision for the revaluation of the fixed assets based on current values for 3 year old vans. I think takeover approaches can now be expected. A venture capitalist could sell the Spanish business for the current market cap and run down the UK business for cash until conditions improve at which point they sell it to a van manufacturer.

Graham Donbavand 23 Feb 2018

My Take I am a little confused. These are my thoughts at simple level.The suggestion seems to be it is better to keep vehicles for a longer time.Therefore there will be a longer period of depreciation before disposal.Logically, during this additional time the contribution from the vehicle (rental income less variable costs) must be greater than the depreciation, otherwise it would be better to continue to sell the vehicles in the same time scale as at the moment.So there will be more depreciation but there should be a greater contribution so overall in the long run the bottom line should improve (otherwise why implement the policy)?I suppose in the year of change rather than making a profit on disposal there will be a part of the additional contribution then another part of additional contribution in the following year followed by a smaller profit on disposal. Eg (figures entirely made up) instead of making £5000 profit on disposal in FY 18 there will be say £1500 additional contribution (extra 6 months) then in FY19 another £750 additional contribution (extra 3 moths) then profit on disposal of £2750. So there would be a reduction in profits in FY18 compared to previous years (as there is £1500 more recurrent profit rather than a £5000 profit on disposal) but across the 2 years there will be no difference (-5000 +1500 +750 +2750 =0). In fact there should be an improvement otherwise why implement the policy?

TX2 23 Feb 2018

Re: Profits warning - why I assume a considerable amount of the profit earned comes because the selling price is greater than the depreciated price;therefore if you hold on to the vans longer for a period you will sell less vans until they have reached the new sale age say 30 months old instead of 2 years.One point that might be a reason for change is that Vehicles are increasingly better built,more reliable and require less & cheaper service.It is more practical to keep them for a longer period and perhaps you can make a larger proportion of profit from the rental rather than the sale.You also tie up less capital as the average unit price of the vehicles will be lower if you hold them for a longer period.

Greyinvestor 22 Feb 2018

Correction Sorry, last post came out wrong. Management is suggesting £56m profit maximum = maybe 43p EPS, hence me saying 40p maximum. The management suggestion is before further downward adjustments, so 40p may be an overestimate.Whichever way I look at this, the profit is going down. And I’m not sure that this is a one off movement. It sounds pretty permanent to me. The residuals and the rental margins have been going south in the UK.However, if 40p is the outlook, the shares are undoubtedly cheap.