Fleet News

Rapid growth predicted for lcv hire

THE UK's light commercial vehicle hire market could be on course for rapid growth if it follows the model of the US. In the US 55% of fleets hire their lcvs, compared to just 8% in the UK, though demand is rising on this side of the Atlantic, according to specialist commercial vehicle hire company Northgate Motor Holdings.

Michael Waring, chairman of Northgate's parent company Goode Durrant, said: 'The prospects for our businesses remain sound, with demand continuing to grow as the benefits to companies of outsourcing their vehicle and equipment needs become ever more apparent.'

Northgate has just reported a 24% rise in operating profits to £29.5 million for the financial year to the end of April 1997. The light commercial vehicle hire specialist grew its fleet by 43% from 11,250 to 16,000 units over the same period, and further growth is forecast, driven partly by products such as Norflex, Northgate's flexible rental product.

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