Northgate sees mixed trading in third quarter

13th Mar 2014 07:01

The number of UK vehicles on hire continued to increased at Northgate in the third quarter, but Spain saw numbers decline. The FTSE 250 commercial vehicle hire group lifted vehicles on hire 2.4% in the UK but saw a slight fall in Spain, while vehicle utilisation dropped a percentage point in the UK but added two in Spain.The rise in the UK compares with falls in the same period the year before.This was helped by Northgate's six new sites opened in the preceding months, with 600 vehicles on hire, which was ahead of expectations.Capitalising on this rising demand, the group plans to open four to six further sites in the London area in the next six months. Underlying hire revenue per rented vehicle increased by 1% in the UK compared to the last financial year, while in Spain it fell 1%. Looking forward, the company said: "Vehicles on hire continue to grow in the UK, with signs of stabilisation in Spain. The growth from the new sites opened is ahead of our expectations and we will continue to invest in new sites that provide the required levels of return. "The group continues to trade in line with our expectations and the strong financial position of the group remains unchanged."OH