RNS Number : 6163S
Northgate PLC
04 October 2017
 

4 October 2017 

This announcement contains inside information

               

 

Northgate plc

 

Capital Markets Event

 

Northgate plc ("Northgate") will host a planned event for investors and analysts in London today.  The event starts at 9.30am and will provide further detail on Northgate's strategy for delivering attractive returns to shareholders, together with clear KPIs and medium term objectives.

 

The event will be hosted by Kevin Bradshaw, CEO, and will include presentations by Frank Hayes, Managing Director - UK and Fernando Cogollos, Managing Director - Spain.

 

A copy of the presentation will be available from 9.30am GMT on our website: www.northgateplc.com.

 

Kevin Bradshaw commented:

"We have now concluded our strategic review of the business and today I look forward to taking the market through the significant opportunities to deliver shareholder value in both our core and adjacent markets. This will be driven through a combination of self-help and initiatives that will grow our market share in these markets."

 

Presentations will include the following targets in respect of the financial years ending 30 April 2018-2020.

 

Group

 

Actual

FY17

Target

FY18

Target

FY19

Target

FY20

Rental

 

 

Average VoH Growth (Q4 vs Q4 Prior Year)

-1.7%

Mid to high single digit % growth per annum

Marginal ROCE on New and Redeployed Capital

 

Substantially higher than Group WACC

 

 

Rental Margin %*

14.2%

Minimum of 2% pts growth by FY20

 

Disposal

 

Units Sold

33,800

High single digit % growth per annum

 

 

Net Profit per Unit (£)

976

Decline

(Depreciation

unwind)

Broadly Flat

Group

Corporate Overhead/Sales

1%

Remaining flat to reducing over the period

 

 

Group ROCE

10.5%

Substantially higher than Group WACC

 

 

UK

 

Actual

FY17

Target

FY18

Target

FY19

Target

FY20

Rental

 

 

Average VoH Growth (Q4 vs Q4 Prior Year)

-7.5%

Broadly flat

Mid to high single digit % growth pa

Rental Margin %*

13.5%

Minimum of 2.5% pts growth by FY20

 

Disposal

 

Units Sold

20,400

Strong growth driven by VoH de-fleets, selective fast cycling and 3rd party stock

 

 

Net Profit per Unit (£)

703

Decline                         (Depreciation  unwind)

Broadly Flat as increased retail                      penetration offsets third party mix

 

Spain

 

Actual

FY17

Target

FY18

Target

FY19

Target

FY20

Rental

 

 

Average VoH Growth (Q4 vs Q4 Prior Year)

4.4%

>10%

Continued double digit % growth pa

Rental Margin %*

15.8%

Minimum of 1.5% pts growth by FY20

 

Disposal

 

Units Sold

12,700

Strong growth driven by VoH de-fleets and selective fast cycling

 

 

Net Profit per Unit (Eur)

1,589

Decline

(Depreciation  unwind)

Broadly Flat

 

 * Rental Margin % represents underlying operating profit (excluding disposals) divided by hire income (excluding costs passed through to customers).

 

No new current trading information will be disclosed during the Capital Markets Event.

For further information, please contact:

 

Northgate plc                                                    01325 467558

Kevin Bradshaw, Chief Executive Officer

David Tilston, Chief Financial Officer

 

MHP Communications                                  020 3128 8100 / northgate@mhpc.com

Andrew Jaques

Barnaby Fry

Simon Hockridge

Ollie Hoare

 

Notes to Editors:

Northgate plc is the leading light commercial vehicle hire business in the UK, Ireland and Spain by fleet size and has been operating in the sector since 1981.

Northgate's core business is the hire of light commercial vehicles to businesses on a flexible or term basis, giving customers the ability to manage their vehicle fleet requirements in a way which can adapt to changing business needs without the requirement to enter into a long term commitment. Further information regarding Northgate plc can be found on the Company's website: www.northgateplc.com

 

 


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