Fleet News

Northgate profits from rates rise

Van rental giant Northgate anticipates a rise in rental rates next year. The company has already seen average hire revenue per vehicle rise 2% as it posted a 30% increase in group operating profit to £53.5m for the six months to October 31.

Pre-tax profit increased by 24% to £27.2m and it reduced net debt by £18.7m to £579.6m.

“Results for the first half of the year are in line with our expectations,” said Bob Mackenzie, Northgate chairman.

His chairman’s statement added: “Hire rate improvement continues to be a focus with strict controls over new business pricing. We anticipate improved progress in this area.”

Northgate’s UK fleet of 60,700 vehicles was down 200 from April 2010 in line with its strategy.

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