Northgate continues recovery

18th Mar 2011 16:14

Light commercial vehicle hirer Northgate says that it is trading slightly ahead of its plans. The trading statement covers the period from 1 November 2010 to 18 March 2011. Net debt is continuing to fall and the company is reviewing its financing facilities, which last until September 2012. In the UK, hire revenue per vehicle has continued to improve with an increase of around 3% since April last year. Utilisation rates have been maintained at 91% even though the size of the fleet has increased by 1,000 to 61,700 vehicles. Residual values are holding up and the restructuring of the business is progressing. The new IT system roll-out should be completed in May. In Spain, a reduction in the size of the fleet has helped utilisation levels to rise from 86% last year to 91%. Hire revenue per vehicle is unchanged. The bad debt charge of €3.3m for the 10 months to February 2011 was much less than the €8.6m in the same period last year. The Spanish business now trades under the Northgate brand.