Redde Northgate PLC

Management Reports • Sep 18, 2014

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RNS Number : 9689R

Northgate PLC

18 September 2014

18 September 2014

NORTHGATE PLC

INTERIM MANAGEMENT STATEMENT

Northgate plc ("Northgate", the "Company" or the "Group"), today publishes its Interim Management Statement covering the period from 1 May 2014 to 18 September 2014.

UK

Vehicles on hire have risen by 900 during the period, to 48,500 at 17 September 2014 from 47,600 at 30 April 2014. This compares to an increase of 1,600 in the same period last year. The growth in this period has largely been driven by the 11 sites opened since February 2013.

The average vehicles on hire in the period have been 10% higher than in the same period in the prior year, 4% being from the new sites and 6% from organic growth.

Vehicle utilisation in the period to 17 September 2014 has averaged 89%, compared to 88% in the same period in the prior year. Fleet size has increased from 53,900 at 30 April 2014 to 54,300. 

Hire revenue per rented vehicle is in line with the last financial year.

As planned, the network continues to increase with new branches opened in Sandyford (Dublin), Watford, Enfield and Southall since 30 April 2014, bringing the branch network to 72.

The used vehicle market remains strong, with residual values in line with those experienced in the year ended 30 April 2014.

Spain

Vehicles on hire have increased by 1,800 during the period, to 36,500 at 17 September 2014 from 34,700 at 30 April 2014. This compares to an increase of 1,300 in the same period last year. As was the case in the prior year, this period benefited from strong seasonal demand.

The average vehicles on hire in the period have been 10% higher than in the same period in the prior year.

Vehicle utilisation in the period to 17 September 2014 has been 92%, in line with the same period last year. The fleet has increased by 2,100 since 30 April 2014 to 39,900.

After adjusting for fleet mix, hire revenue per rented vehicle has fallen 1% in comparison to the last financial year. This reduction has been mitigated by an increasing proportion of customers operating our fleet in such a way that running costs are reduced and residual values are improved.         

The used vehicle market remains strong, with residual values improving on those experienced in the year ended 30 April 2014. This follows the improved maintenance regime and customer profiling implemented over the past two years.

Outlook

The Group continues to see increasing returns and profitable growth in both the UK and Spain. The UK network expansion has proceeded as planned and we will continue to invest in new sites that provide the required levels of return. 

The Board remains confident that the business is well positioned to maximise further opportunities for growth and the Group continues to trade in line with our expectations.

For further information, please contact:

Northgate plc	01325 467558
Bob Contreras, Chief Executive Chris Muir, Group Finance Director
MHP Communications	020 3128 8100
Andrew Jaques
Barnaby Fry
Simon Hockridge

Notes to Editors:

Northgate plc is the leading light commercial vehicle hire business in the UK, Ireland and Spain by fleet size and has been operating in the sector since 1981.

Our core business is the hire of light commercial vehicles to businesses on a flexible basis, giving customers the ability to manage their vehicle fleet requirements without a long term commitment.

Further information regarding Northgate plc can be found on the Company's website:

www.northgateplc.com

This information is provided by RNS

The company news service from the London Stock Exchange

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