T
he boss of economic automobile rental agency Redde Northgate says supply of vans may not catch as much as demand for 2 years, whereas it might take even longer for prices to come back down.
The business mentioned provide challenges are easing because it upped its fleet to 130,000 autos, however added there was nonetheless a “scarcity” of vans within the UK .
CEO Martin Ward informed the Standard: “Supply for vans still remains problematic”. He expects the challenges to stay for as much as two years.
The impression on leasing costs might doubtlessly last more. Ward mentioned provide in Spain has caught up, however costs have held up.
“It’s hard to say if there’s read-across to the UK there,” he mentioned.
The provide points impacted rental volumes however boosted typical van rental costs. Profit was up by a 3rd to a file £178.7 million.
Ward mentioned: “This is an excellent set of results and we are proud of what the Group and all our colleagues have achieved this year, delivering record revenue and profits and strong levels of cash generation.
“Our integrated mobility platform has helped to drive growth and offers significant efficiencies for ourselves and customers. Vehicle supply is improving but remains below the high levels of customer demand; our financial strength provides an ability to react quickly to supply opportunities as they arise.”
Andy Murphy, director of financials and industrials at Edison Group, mentioned: “Ward has set out a bold strategy of acquisition for the company – and is clearly betting on the continued recovery of supply chains, consumer demand, and international trade.
“However, Ward acknowledged an ongoing shortage of commercial vehicles may inhibit future growth prospects.
“This, along with continued problems with recruiting HGV drivers as well as trade frictions between the UK and the EU, means Redde Northgate is still operating in a far from ideal market environment.”
Shares fell by 229p, or 5.9%, to 356p.
