Fleet News

Expansion plans as Northgate profits show 17% increase

BRITAIN'S biggest commercial vehicle rental company is set to increase its fleet size to between 50,000 and 55,000 by 2004 as it doubles its number of outlets. Northgate broke the news when - despite the fleet industry's concern over falling residual values - it announced a jump in profits with its turnover increasing by 25% to £153.5 million (1999: £123.1 million) for the six months to October 31, 2000.

During the period the company's operating profit increased 17% to £21.6 million (1999: £18.4 million), and pre-tax profits increased 13% to £13.9 million (1999: £12.2 million). New hire companies in Coventry, Stoke, Exeter, and Dublin, and new branch openings in Norwich and Gloucester, mean the total group network now numbers 48 locations nationwide.

The company hopes to open another 12 to 15 new locations in the current financial year. Northgate's chairman Michael Waring said: 'The continuing move towards outsourcing and the development of the home shopping trade confirms our view that the potential for growth in the light commercial vehicle rental market is significant.'

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