Northgate Vehicle Hire has announced an 11% rise in annual profits, reflecting a series of changes across the business, including higher hire rates, a rise in used vehicle sales and a refining of the company’s UK and Spanish fleets.
Having reduced its van fleet by 13%, from 104,700 to 91,300, over the last 12 months, the senior management team has been working to make the entire organisation more efficient and effective.
Northgate made £46m in the year ending 30 April, up 74% from £26.5m in the previous year. It has also made an extra 19% profit on each van hired out in Spain. The operating profit margin in the UK rose 23% on higher hire rates and reduced loan repayments.
Jonathan Pearce, marketing manager at Northgate Vehicle Hire, said: “In these uncertain times we’re finding that more companies are choosing the flexibility of our rental product over other methods which require the financial commitment of a contract.
“A number of important changes have taken place throughout both the UK and Spain over the last 12 months to drive us forward and it’s rewarding to see the positive impact on the business’ bottom line.”
Northgate Vehicle Hire has sites across 62 locations in the UK, with its head office in Darlington.