further
Light commercial vehicle hire specialist Northgate
plc has released its half-year results, which show that profits
before tax grew by 16 per cent to £43.9m in the six months to
October 31 2007 – and announced on the same day that it has
acquired Hampsons Self Drive Hire Ltd.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
In the half-year to October 31, group revenues grew by 6.4
per cent compared with the year-ago period to £278.9m, with
operating margin in the UK improving from 21.2 per cent in
half-year 2006 to 22.6 per cent this year. The utilisation level
across the total Northgate fleet was 91 per cent in the UK and 90
per cent in Spain.
Chairman Philip Rogerson commented: “In the UK, we have seen the
benefits of the restructuring of the business carried out in the
last financial year, along with a continued good level of
utilisation, a stable hire rate environment and a buoyant used
vehicle market.”
Northgate is planning to move into a new territory by the end of
2008, the company announced, with possible locations for a new
operation currently consideration in “mature European markets” as
well as in “countries new to the European Union”.
Hampsons, meanwhile, was acquired for “an estimated consideration
of £9.8m plus acquired debt of £7.7m,” according to Rogerson; the
acquisition has added a further 1,600 vehicles to Northgate’s UK
fleet, along with nine new locations. The newly-purchased company
will continue to operate under the Hampsons brand, with Dean
Anderson named as the new managing director. Anderson has been with
Hampsons for over 20 years.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataNorthgate operates 68,500 vehicles in the UK and 59,500 at its
Spanish subsidiary. The fleet is composed of around 80 per cent
light commercial vehicles, with cars and a small number of
specialist heavier goods vehicles making up the remainder, operated
in the UK from its 89 locations divided between 21 subsidiary
companies.
A profile of Northgate will appear in the January issue of
Motor Finance
