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Financial News
Preliminary Results for the Year Ended 30 April 2010
30/06/2010
Northgate plc (“Northgate”, the “Company” or the “Group”), the UK and Spain’s leading specialist in light commercial vehicle hire, announces its preliminary results for the year ended 30 April 2010.
Underlying Financial Highlights
- Group operating profit(1) increased by 15.4% to £82.8m (2009 – £71.8m);
- Underlying profit before tax(2) increased by 32.8% to £36.5m (2009 – £27.5m);
- Basic earnings per share(3) decreased by 54.7% to 26.8p (2009 – 59.2p(4)), earnings(3) increased by 47.2% to £28.2m (2009 – £19.2m);
- Net debt(5) reduced by £288m to £598m (2009 – £886m);
- Return on capital employed(1) improved to 8.4% (2009 – 5.8%);
- • Successful completion of debt refinancing and equity fundraising during the year.
- Average utilisation in the year of 91% in the UK (2009 – 88%) and 88% in Spain (2009 – 83%);
- Pricing improvement of 3% in the UK since April 2009;
- Benefited from strong used vehicle markets in both the UK and Spain;
- Closing fleet of 60,900 in the UK (2009 – 62,900) and 48,900 in Spain (2009 – 60,400);
- Reorganisation of the UK business underway.
- Profit from operations increased to £71.1m (2009 – loss of £117.5m);
- Profit before taxation of £9.6m after exceptional items of £21.9m (2009 – loss of £195.6m after exceptional items of £217.9m);
- • Basic earnings per share increased to 23.1p (2009 – loss per share of 572.6p(4));
- Profit for the year increased to £24.4m (2009 – loss of £185.7m).
(2) Stated before intangible amortisation of £5.0m (2009 - £5.3m), exceptional items of £6.7m (2009 - £3.1m), impairment of £Nil (2009 - £180.9m) and exceptional interest expense of £15.2m (2009 - £33.8m).
(3) Stated before intangible amortisation of £5.0m (2009 - £5.3m), exceptional items of £6.7m (2009 - £3.1m), impairment of £Nil (2009 - £180.9m), exceptional interest expense of £15.2m (2009 - £33.8m) and tax credit of £23.0m (2009 - £18.2m).
(4) As restated for the bonus element of the ten for one Rights Issue at 7 pence per Ordinary share effective 12 August 2009 and the one for ten consolidation effective 23 September 2009.
(5) Net debt taking into account the fixed swapped exchange rates for US loan notes.
Bob Mackenzie, Chairman, commented:
“Since the refinancing last year, we have met substantially all of our targets. Going forward, we will concentrate on doing simple things very well. We will complete the UK restructuring. We will develop further plans for Spain, which is already significantly more operationally efficient than the UK, and will continue to focus on margin.
Our aim is 90% utilisation and if we need to further reduce the fleet so be it. Maximising returns and charging fully for ancillary services will be our prime targets.
The Group has begun the new financial year in line with expectations.”
Full statement and results attached.
There will be a presentation to analysts at 9.30am today at RBS Offices, 135 Bishopsgate, London EC2.
For further information, please contact:
Northgate plc
Bob Mackenzie, Chairman
Bob Contreras, Chief Executive
01325 467558
Hogarth
Andrew Jaques
Barnaby Fry
Anthony Arthur
020 7357 9477
Notes to Editors:
Northgate plc rents light commercial vehicles and sells a range of fleet products to businesses via a network of hire companies in the UK, Republic of Ireland and Spain. Their NORFLEX product gives businesses access to a flexible method to obtain as many commercial vehicles as they require.
Further information regarding Northgate plc can be found on the Company’s website:
http://www.northgateplc.com Download pdf
