Northgate Regulatory News (NTG)

4 May 2006 07:00

Northgate PLC04 May 2006 4 May 2006 Northgate plc Pre-Close Trading Update Northgate plc ("Northgate" or the "Group"), the leading commercial vehicle hirecompany in the UK and Spain, is today issuing an update on trading ahead of itsclose period before the release of its final results for the year ended 30 April2006. Overall, the Group's performance has been and remains in line with the Board'sexpectations. The UK business (excluding recently acquired Arriva Vehicle Rental Limited("AVR")), has experienced fleet growth in the last six months in line with theBoard's expectations and utilisation has been maintained at 90%. Northgate's UKbusiness continues to operate in a competitive market and hire rates haveremained under pressure, particularly in the third quarter of the financialyear. This has led to hire rate reductions during the second half of thefinancial year being slightly ahead of those experienced during the first half.However, residual values have continued to improve in line with the Board'sobjective to break even on vehicle disposals for the full financial year. As announced on 3 February 2006, the Group acquired the entire share capital ofAVR, a leading UK rental provider operating through 33 branches in the UK with afleet of over 11,000 vehicles. Since the acquisition, the AVR business has beensuccessfully integrated into Northgate. Branches where duplication occurred withan existing Northgate branch have been closed. As a result, the enlarged branchnetwork of Northgate now has 88 locations. The integration process has proceededin line with the Board's expectations, and no unforeseen issues have emerged. Both Fualsa and Record Rent, Northgate's businesses in Spain, continue toachieve combined fleet growth in line with the Board's expectations. Theacquisition of the remaining 51% of Record Rent is scheduled to take placeshortly after the statutory accounts for 2005 have been approved and audited. Itis expected that this process will be completed before the end of May 2006. Northgate's preliminary results will be announced on 4 July 2006. -Ends- For further information, please contact: Northgate plc Tel: 01325 467558 Steve Smith, Chief Executive Officer Gerard Murray, Group Finance Director Hogarth Partnership Limited Tel: 0207 357 9477 Andrew Jaques Barnaby Fry Anthony Arthur Further information regarding Northgate can be found on the Group's website: http://www.northgateplc.com This information is provided by RNS The company news service from the London Stock Exchange