Gamble of the week: austerity may suit this van hire firm

With a third of its sales coming from Spain, investors can be forgiven for being wary of this van hire firm. But they're missing a trick, says Phil Oakley. Here's why.

Britain's largest provider of rented vans a firm that gets more than a third of its sales from economically troubled Spain may not sound a tempting investment proposition. But anyone who ignores it might be missing a trick.

A few years ago Northgate was a complete basketcase. Loaded up with debt, with lots of its vans being rented by the building trade, it was caught out as the UK and Spanish economies crashed. For a while, there were doubts that the company could even survive. But having steadied its position in both countries and reduced its exposure to construction, Northgate may be just the type of business that is well suited to austere times.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.