Northgate sells vans to improve utilisation rates

16th Sep 2009 07:57

Van hire group Northgate has reported higher utilisation rates in the UK and Spain after cutting fleet sizes.In the UK, the rate over the period between May 1 and September 15 averaged 91%, compared with 88% in the year to April 30. The fleet size fell to 60,100 vehicles from 62,900 during the 4½ month period.In Spain, the utilisation rate improved to 81.2% from 89.4% as the fleet size fell to 57,100 from 60,400. Northgate said it was seeing an improvement in hire rates since lows in March in the UK and that the used car market, which is an important source of revenues for the firm, was stabilising.'As expected the macroeconomic conditions continue to adversely affect the Group's markets,' the firm said. 'Following the initiatives taken in the previous financial year, coupled with the ongoing focus on maximising fleet revenues and further operational efficiencies we have achieved a recovery in margins compared to those being achieved in the early part of this calendar year.'