(Sharecast News) - UK, Ireland and Spain-focussed light commercial vehicle hire specialist Northgate told shareholders that its strategic review, focussed on the company's "significant intrinsic value", was ongoing on Monday, as they gathered for their annual general meeting.
The London-listed firm had initiated the review following the arrival of Avril Palmer-Baunack as non-executive chair on 12 August, working with the chief executive officer and chief financial officer to look at the company's growth options.
"Importantly the review is focused on clarifying the significant intrinsic value of Northgate - both in its core businesses and in the strong potential of strategic actions that will grow the business in both scale and value," Palmer-Baunack said on Monday.
At the meeting, shareholders were also being asked to approve a final dividend of 12.1p per share, which would be paid on 27 September to shareholders on the register as at 16 August.
The board said the dividend, if approved, would result in a total ordinary dividend payable for the year ended 30 April of 18.3p per share.
It also confirmed the company's successful refinancing of its committed bank facilities at the meeting.
The increased facility of £557.5m comprised a £477.5m multi-currency revolving credit facility due November 2023, and an £80m term loan due November 2022, underpinned by improved commercial terms which it said allowed further funding for growth.
"The company's €100m (£88.3m) private placement remains in place," the board confirmed.
Looking at Northgate's current trading, Palmer-Baunack said the company's overall financial performance in the year to date was in line with management expectations.
"However, given the current ongoing Brexit-related political and economic uncertainty in the UK, which could have an impact on various market sectors such as construction and retail, the board believes it is right to remain cautious in its outlook.
"The board remains convinced in the intrinsic value of Northgate's underlying strong market positions, and focused on the strategic opportunities to grow shareholder value."
A number of board changes were also taking place, with Jill Caseberry standing down as a non-executive director, and Alexander Mark Butcher joining in the same position and as chair of the remuneration committee.
Bill Spencer would continue to chair the audit committee, but would step down as senior independent non-executive director, while John Pattullo - who joined as a non-executive director in January - would take up the position of senior independent non-executive director.
As the directors had previously indicated, Fernando Cogollos was also joining the board as a non-executive director.
16 Sep 2014 05:26
