Northgate profit down, confident outlook

8th Dec 2009 07:46

Van hire group Northgate reported a drop in half year pre-tax profits but said it looks forward with increased confidence.Underlying pre-tax profits fell to £22m in the six month ended 31 October compared with a profit of £26.5m the year before.Group revenue decreased by 4.1% to £375.9m or 8.0% at constant exchange rates. In the UK a 7.4% reduction in the average number of vehicles on hire contributed to a decrease in rental revenue of 10.2% to £157.3m (2008 - £175.2m). In Spain the reduction in average vehicles on hire of 8.1% contributed to a decrease in rental revenue of 1.9% (11.5% at constant exchange rates).'Given the continued uncertain economic environment, particularly in Spain, our focus remains on hire rate improvement, efficient fleet management, further cost reductions and cash management,' said chairman Philip Rogerson.'We are pleased with the progress to date against our objectives and look forward with increased confidence,' he added.