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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Northgate - Earnings to increase 20% this year

August 2006

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • NTG
  • Price:
  • 963p
For the year ended 30 April, van rental firm Northgate saw pretax profit increase 7% to £59.9m from a 10% rise in turnover to £373m. Earnings were up 6% to 65.7p. Following the acquisitions of Arriva Vehicle Rental (AVR) and a 49% stake in Record Rent, net debt increased by 22% to £525m. Given its decent long-term record, this was a below par performance, mainly because its mature UK business saw its profit, before a £2.6m exceptional charge, fall from £62.5m to £60.6m. Although utilisation again averaged 90%, the problem was a fall in residual values for vehicles sold at the end of their life and also a 2% decline in hire rates due to increased competition and together they crimped operating ma ...

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Related Articles

Northgate (February 2008)
Northgate (September 2007)
Northgate (February 2007)
Northgate (February 2006)
Northgate (December 2005)
Northgate (October 2005)
Northgate - Acquired Record Rent (August 2005)
Northgate (June 2005)
Northgate - Hire fleet grows to nearly 70,000 vehicles (February 2005)
Northgate - Analyst visit to Fualsa (December 2004)
Northgate (October 2004)
Northgate - Van rental firm growing strongly (September 2004)
Northgate - New eps forecast of 65p for 2006 (August 2004)
Northgate - Buys 100% of Fualsa (June 2004)
Northgate - Van rental group on track (December 2003)
Northgate - New three year plan (August 2003)
Northgate - Van rental group a resilient performer (June 2003)
Northgate - Fleet utilisation still over 90% (February 2003)
Northgate (November 2002)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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