Northgate plc, specialists in light commercial vehicle hire in the UK and Spain, has reported a bumper performance for the first six months of their financial year.
Darlington based Northgate, has increased its interim dividend by over a third and trading since their six month report has also been ahead of expectations.
Underlying profits have increased by nearly 50% and pre-tax profits are up by 70% (year-on-year) to £46.7m.
Northgate have increased their vehicles on hire number by 2,800, with their total currently running at 49,400. They have also attributed some of their increase in profits to lower maintenance costs.
Northgate UK expansion
Northgate has launched four new sites in the past six months, and another once since October 31st – they also have plans to open another three sites by the end of their financial year. On average, they are looking to open a total of eight to ten sites each year.
We are pleased by the growth delivered by the group in the first six months of the year
By 31 December 2016, this will take the UK branch network to approximately 90.
Chairman, Bob Mackenzie, said;
“We are pleased by the growth delivered by the group in the first six months of the year. This reflects the work done in recent years, in particular, supporting the continued investment being made in our people, systems and infrastructure.
“Our plans to open new sites in the UK are on track and trading from these new sites is exceeding our initial plans. The board remains confident that we are well positioned to deliver further growth and attractive returns to shareholders. The Group is currently trading slightly ahead of our expectations.”