Northgate profits soar despite revenue fall

30th Jun 2011 16:18

Business vehicle hire group Northgate was in the fast lane Thursday after posting a 47% rise in pre-tax profits in the year to 30 April. Pre-tax profit for the year totalled £53.8m, up from £36.5m the previous year, even as revenue fell to £715.5m from £749.6m.The company, which operates in Britain, Ireland and Spain, reduced its fleet size in reaction to tough economic circumstances."Despite the economic downturn the group has retained a strong, market leading position in both the UK and Spain, and has delivered earnings growth in line with the board's expectations," chairman Bob Mackenzie said.He said the company will continue working on reducing cash and improving fleet efficiency."The group has begun the new financial year in line with the board's expectations, and the board is confident the group is well placed to continue to deliver significant value to shareholders."