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BUZZ-Northgate: Robust FY earnings fail to overshadow slower UK growth

Tue, 30th Jun 2015 08:28

** Shares in van rental company Northgate Plc fallas much as 8 pct after co reports full-year earnings thatgarners mixed market reaction

** Stock top loser on the FTSE-250 Midcap Index

** Brokerage Numis cuts rating on the stock to "hold" from"add" citing slightly slower growth in the UK, three yearunwinding of the depreciation change, and the forex headwind

** Numis says upside risk exists from faster fleet on hiregrowth, but downside risk also exist from a potential more rapidfall in UK residual prices

** Jefferies says co's headline FY15 numbers look to be atthe upper end of its expectations forecasts. However, notes thesubdued number of vehicles on hire compared with a year earlier

** Co reports vehicles on hire at 48,600 in the UK up 1,000year-on-year including 1,900 from the new sites and up 900year-on-year in Spain at 35,600

** Jefferies had estimated 51,958 vehicles on hire in the UKand 37,500 in Spain

** Co, however, reports pretax profit jump to 83 mln stg vs51.2 mln stg a year earlier, and declares dividend of 10.2 p/shcompared with 6.8 p last year (aashika.jain@thomsonreuters.com)

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