Fleet News

Van hire group to double size

NORTHGATE Motor Holdings' parent company Goode Durrant, the van hire group, has announced plans to double the size of its fleet and outlets as it revealed pre-tax profits of more than £27million. Despite a loss in the first half of the year for the group of £900,000 - blamed on falling residual values - it believes the worst is over and the company is now ready to implement a five-year growth strategy helped by stability in the vehicle hire market which has seen rental rates stabilise.

In its preliminary results for the year ended April 30, the light commercial vehicle hire group announced operating profit up 6.5% to £39.5million on turnover ahead 22% to £229.5million. Pre-tax profit increased to £27.5million and the fleet has grown by 28% to 26,500 vehicles.

Alan Noble, executive chairman of Northgate Motor Holdings, revealed that the group planned to expand the number of depots around the country which could support 1,000 vehicles or more. About 10 areas in the country had been identified, plus about 60 additional sub-branches which will have up to 250 vehicles. The company currently has 31 outlets.

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