Northgate Regulatory News (NTG)

7 Nov 2006 07:01

Northgate PLC07 November 2006 7 November 2006 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 2006. Trading for the Group for the first six months has been satisfactory. In the UK we have increased utilisation to around 91%, which, combined withmodest fleet growth, has resulted in the number of vehicles on hire being inline with expectations. Whilst the market place remains competitive we have notexperienced the same pressure on hire rates that we saw last year. Residual values have improved slightly against the levels achieved in the secondhalf of the previous financial year. In Spain we continue to see strong demand for our product and as a result fleetgrowth and operating profits are in line with the Board's expectations. Interest costs have been adversely impacted particularly by the increases inEuribor. The Group has recently increased the value of its loans denominated inEuros following the acquisition of Record Rent a Car SA in May 2006. Overall the Board remains confident of a satisfactory outcome for the Group forthe year as a whole. Northgate's interim results will be announced on 9 January 2007. -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 FryAnthony 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