Business

Northgate van hire profit rises despite downturn

Northgate vans
Image caption Northgate managed to increase profit margins

Van hire company Northgate has reported a rise in annual profits after cutting back its UK and Spanish fleets and raising prices.

The Darlington-based company made £46m in the year ending 30 April, up 74% from £26.5m in the previous year.

Northgate has reduced its van fleet by 13% from 104,700 to 91,300 due to falling demand.

Revenue fell 1.2% due to the economic downturn in its main markets of the UK and Spain.

The company, which formerly traded as Record and Fualsa in Spain, has managed to make an extra 19% profit on each van hired out in Spain.

The operating profit margin in the UK rose 23% on higher hire rates and reduced loan repayments.

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