We aim to use our competitive advantage to make the most of the clear growth opportunities we have identified in all our markets.

Strategic Opportunities

1Flexible rental – defend and grow share

Why this is important:

Flexible rental is Northgate’s core market, and as a market leader it is important we defend it. Our network and people are set up to succeed in this market. We can win market share using the competitive advantage of our scale and our unique understanding of customer requirements

Priorities:

Defend and grow our share of this market.

2Minimum-term hire – selectively gain share

Why this is important:

With a low share of a fragmented market, there is significant opportunity for us to grow, and we can serve this market with limited variations to our operating model. We offer a range of minimum-term commitments with levels of service typically associated with flexible rental, these are attractive propositions to cross-sell within our existing flexible customer base. Most medium and large fleets have a requirement for both flexible and minimum-term rentals. Minimum-term is also the natural landing point for customers who transition from vehicle ownership to term-hire. Customers no longer feel the need to own their vehicles outright and are attracted to the upfront cash flow advantage, predictable cash flows, and the potential for whole-life costs to be lower than ownership.

Priorities:

We continue to see this as a substantial opportunity for the future for Northgate, as the market is twice the size of the flexible market and growing faster. We continue to invest in targeted marketing in each territory to support the transition from ownership to term-hire where adequate returns are achievable.

3Broaden our provision of capital-light fleet solutions

Why this is important:

There are a number of complementary service solutions across the lifecycle of B2B vehicle rental. Expansion into these areas in an organic or inorganic way, would allow Northgate to provide a comprehensive LCV rental proposition to our customers. Many of these adjacencies provide technology-led solutions to enable customers to manage all aspects of their fleet in the most efficient and cost-effective way

Priorities:

We see an opportunity to strengthen Northgate’s B2B LCV service proposition through expansion into a number of complementary services solutions.

4Optimise and increase participation in the disposal market

Why this is important:

We can make the most of our scale through our national Van Monster network in the UK & Ireland, and Northgate Occasion in Spain and thus offer customers the widest range of vehicles and service in the market. This allows us to maximise cash returns on sales of vehicles, reduce the overall holding cost of our vehicles and ensure we can invest in rental fleet.

Priorities:

We continue to see rich opportunities in increasing the proportion of disposals made through higher margin retail channels and minimising the holding cost of vehicles.

Supported and mobilised by our strategic pillars