Northgate Regulatory News (NTG)

9 Nov 2005 07:00

Northgate PLC09 November 2005 9 November 2005 Northgate plc Pre-Close Trading Statement 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 interim results for the period ended 31October 2005. As set out in the AGM statement on 28 September 2005, the Group has beenaffected by some weakness in its UK market, particularly in supplying to theconstruction, retail and distribution sectors. Consequently, the size of the UKfleet during the half-year remained static albeit utilisation was maintained at90%. It is pleasing to report, however, that fleet growth returned to plannedlevels in September and October. Competitive pressures have led to a slight decrease in UK hire rates in recentmonths. Management actions taken on vehicle disposals have resulted in the Groupbeing better placed to achieve a modest improvement in residual profits duringthe remainder of the year. Both Fualsa and Record, Northgate's businesses in Spain, continue to performwell with combined fleet growth and earnings in line with the Board'sexpectations. The Board looks forward to a satisfactory outcome for the Group for the year asa whole. Northgate's interim results will be announced on 10 January 2006. -Ends- For further information, please contact: Northgate plc Tel: 01325 467558Steve Smith, Chief Executive OfficerGerard Murray, Group Finance Director Hogarth Partnership Limited Tel: 0207 357 9477Andrew JaquesBarnaby FryEdward Westropp 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