Northgate up sharply after restarting dividend
Commercial vehicle hiring firm Northgate has beaten both revenue and profit expectations, while making enough money in the 12 months to the end of April to reintroduce a dividend.
Commercial vehicle hiring firm Northgate has beaten both revenue and profit expectations, while making enough money in the 12 months to the end of April to reintroduce a dividend.
Northgate, which has major operations in both the UK and Spain, saw revenues for the year of £706.7m, down 1.2% on the previous year but ahead of the consensus forecast of £702.75m.
Profit before tax increased 10.9% over 2010/2011 to hit £59.7m, again this was better than the £57.45m the market had been expecting.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The resumption of a dividend will also be a surprise to many; the firm says it will pay 3p per share for the full year, costing around £4m.
In any leasing business, return on capital employed (ROCE) is an important metric, Northgate's ROCE improved to 13.1% compared to 11.9% in 2011.
The firm admits economic conditions in Spain have been challenging, with revenues down £20.5m but the drop in turnover was partly compensated for by the margin improving from 18% to 19.1%, leaving operating profits down just £1.7m.
The Chairman, Bob Mackenzie, said: "The group retains its strong, market leading position in both the UK and Spain. With the majority of the restructuring completed the group will continue its strong disciplines of asset management, cash generation and cost control whilst at the same time maximising profitable growth where the appropriate return exists."
Shortly after the open Northgate's shares had risen 6.4%.
BS
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
‘Inheritance tax insurance’ enquiries are soaring – but is it worth it?
Premiums for whole of life insurance can run to £5,000 a month to cover a £300,000 inheritance tax bill, with policies costing more the older you take them out.
-
MPs warn over Lifetime ISAs which could leave savers out of pocket
The Treasury Committee has highlighted confusion around the Lifetime ISA withdrawal charge, which risks consumers losing “a significant part of their savings”