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Van company reports positive outlook

Van hire company Northgate has set out a three-year strategic plan after rejecting a recent takeover approach, it has been reported.

The firm said that it aims to increase its levels of investment in both its UK and Spanish operations.

Increasing its fleet size and market penetration were now the company's main aims, Northgate said. The firm aims to cash in on the convenience for customers of providing both the vehicles themselves and van insurance.

The group's recent purchase of a 49 per cent stake in Spanish hire group Record Rent for €55 million increases the company's fleet size in Spain to around 41,500 vehicles.

"Less than two per cent of all vans are rented in Spain so the potential to grow is enormous," said Northgate chief executive Steve Smith.

"Over the next few years, our Spanish operations will move closer in size to our existing UK business."

Despite a sluggish performance in the UK domestic market, the company is reported to be confident of achieving its pre-tax profit targets of around £60 million for the year.

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