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Redde’s investment drive boosts sales

The accident management specialist's drive to improve customer experiences boosted revenues, although a rising number of repairs weighed on profits
February 28, 2017

Redde's (REDD) 'growth, profitability and sustainability' strategy achieved its goal of winning over customers in the first half. During the period, the accident management specialist invested more in telephony, IT systems and developing its online portals, all with the aim of increasing accessibility and enhancing user experience.

IC TIP: Hold at 177p

Thanks to these efforts, Redde was able to both renew existing contracts and reel in new customers. Revenues in the period surged (see table), with 22 per cent generated by FMG, the claims management specialist it acquired in October 2015. Redde bought FMG to widen its appeal to owners of large vehicle fleets requiring accident management and legal services. Based on these results, that strategy appears to have worked out well.

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