Preliminary results for the year ended 30 April 2017
Northgate plc (“Northgate”, the “Company” or the “Group”), the UK, Spain and Ireland’s leading specialist in light commercial vehicle hire, announces its results for the year ended 30 April 2017.
Following a reappraisal of the market opportunities available to the Group, the strategy is now focused around four key areas:
Early progress made in the following key areas:
All investments made will be self-funded through the delivery of business wide efficiencies and improved agility to drive growth.
Kevin Bradshaw, Chief Executive Officer, commented:
“Since joining the Group in January, I have been impressed with the strength of the Northgate business model and the opportunities within all territories to enhance our market position.
The performance of the UK business was, however, disappointing with profits impacted by a reduction in vehicles on hire over the second half of the year. A full appraisal has been undertaken and several corrective actions have been implemented. I am confident that these actions, combined with continued management focus, will drive a significant improvement in performance, particularly in the areas of sales lead generation and conversion.
Encouragingly, our businesses in Spain and Ireland continue to show good levels of growth.
I am particularly pleased with the early success of our fixed term offering with over 4,100 vehicles under contract, Group-wide, by the year end. We have also seen further growth from Van Monster, our retail vehicle disposal channel.
I have completed an initial strategic review and this has identified four exciting growth opportunities for the Group in the medium term. Further detail behind these opportunities, our progress against them and key targets will be given at an investor day in October. Our proposed increase in dividend this year reflects my strong conviction that the Group is well positioned to capitalise on these attractive growth opportunities moving forwards.”
There will be a presentation to analysts at 9.30am today at Numis, 5th floor, London Stock Exchange Building, 10 Paternoster Square, London EC4M 7LT. If you have not already registered for attendance then please contact MHP Communications on the number below. A live webcast of the presentation will be available to view via a link on the Company’s website www.northgateplc.com
For further information, please contact:
Northgate plc 01325 467558
Kevin Bradshaw, Chief Executive Officer
David Tilston, Chief Financial Officer
MHP Communications 020 3128 8100 / firstname.lastname@example.org