Northgate trading in line

Commercial vehicle hire company Northgate said despite economic headwinds affecting both its UK and Spanish businesses, it continues to trade in line with company expectations.

In the UK, vehicle utilisation in the period to September 18th averaged at 89%, in line with that experienced in the year ended April 30th 2012.

Vehicles on hire fell from 46,400 at April 30th 2012 to 44,800 at September 18th 2012, a decrease of 1,600 units compared to a fall of 2,400 in the same period last year. There was also a reduction in fleet size of 2,000 since April 30th 2012 to 50,900.

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Hire revenue per rented vehicle has remained stable since the beginning of the financial year, it said.

The used vehicle market remains strong, with residual values in line with those experienced in the year ended April 30th 2012, the group explained.

In Spain, vehicle utilisation in the period to September 18th averaged at 90%, in line with that experienced in the year ended April 30th 2012.

Vehicles on hire in Spain have remained stable since April 30th 2012, with 34,000 at September 18th 2012. Hire revenue per rented vehicle fell by 2% over the period. The fleet size reduced by 700 since April 30th 2012 to 37,700.

"Since the year end, the used vehicle market in Spain has remained strong, with improved residual values per vehicle compared to the previous financial year," Northgate said.

Net debt and gearing continue to fall.

CJ