Northgate increases efficiency in UK and Spain

7th Dec 2010 15:11

Shares in car and van rental group Northgate moved up a gear after profits rose by a quarter in the half year to October 31 as fleet reductions resulted in increased efficiency. Pre-tax profits climbed to £27.2m from £22m over the same period the previous year even as revenues fell to £367.9m from £374.3m. Utilisation rates increased to 92% from 91% in the UK, where the fleet size reduced to 60,700 from 60,900, and to 90% from 88% in Spain, where the fleet size fell to 45,900 from 48,900.'Results for the first half of the year are in line with our expectations and we are making good progress with the reorganisation of both the UK and Spanish businesses,' the company said. 'Our focus remains on improving returns and we expect to make further progress as planned in the second half of the year through hire rate improvement, efficient fleet management, further cost reductions and cash generation.'