Member Article

Darlington’s Northgate continues international growth

Darlington-based commercial vehicle hire business, Northgate plc, has announced increasing returns and profitable growth in both the UK and Spain, from the period from 1 May 2014 to 18 September 2014.

The UK network expansion has proceeded as planned and we will continue to invest in new sites that provide the required levels of return.

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, whilst hire revenue per rented vehicle is in line with the last financial year.

New branches have 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.

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, meaning the fleet has increased by 2,100 since 30 April 2014 to 39,900.

Northgate’s Board reportedly remain confident that the business is well positioned to maximise further opportunities for growth and the company continues to trade in line with expectations.