2nd May 2007 07:01
Northgate PLC02 May 2007 2 May 2007 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 preliminary results for the year ended 30April 2007. In the UK, the hire rate environment has stabilised and has been accompanied byimproved utilisations and modest fleet growth. A significant reorganisation ofthe UK business has also taken place. Residual values have improved against thelevels achieved in the previous financial year. In line with our expectations and contrary to recent press comment, we have seenno evidence of any reduction in demand from the construction sector in Spain,since our construction customers' activity is predominantly infrastructurefocused. The Group's Spanish business continues to perform strongly. Interest costs are higher than originally expected due to the increases inEuribor and Libor. The Group has substantially increased the proportion of itsnet debt that is at a fixed rate. Trading for the Group for the financial year has been satisfactory and theoverall performance has been in line with the Board's expectations. Northgate's preliminary results will be announced on 3 July 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 ExchangeRelated Shares:
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