Van-rental company Northgate has reported a rise in profit, boosted by two acquisitions. Pre-tax profit for the year to April 30, 2007 jumped to £79.3m from £61.3m the previous year, while turnover rose 41% to £526.5m. During the period, the firm acquired Arriva Vehicle Rental and bought the remaining 51% of the equity in Record Rent A Car in Spain.
Phil Moorhouse, Northgate's UK and Ireland managing director, tells Motor Transport: "We have had an excellent set of results after a year
of significant change. The firm has assimilated two major acquisitions, one in each of our markets, streamlined our UK business and we are well positioned for future growth." Northgate says the expansion of its UK fleet was "more modest" than expected as the group cut the number of its hire firms from 35 to 20.
The company's fleet of UK vehicles grew 2% to 65,300. Northgate expanded its fleet in Spain by 17% to 55,000 vehicles and, according to the company, this market now generates about 35% of its operating profit. Although there are unlikely to be any imminent acquisitions, the firm says companies in Germany and Italy are targets, along with businesses in the most recent countries to join the EU.
A statement from Northgate adds: "The new financial year has started well and the group is performing in line with the board's expectations."
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