• Revenue (£m)

    Revenue (£m)

    £745.5m +6.2%

  • Underlying operating profit (£m)

    Underlying operating profit (£m)

    £76.2m +11.5%

  • Underlying profit before tax (£m)

    Underlying profit before tax (£m)

    £61.1m +7.2%

  • Underlying EPS (p)

    Underlying EPS (p)

    38.7p +11.2%

  • Dividend per share (p)

    Dividend per share (p)

    18.3p 3.4%

  • Underlying free cash flow (£m)

    Underlying free cash flow (£m)

    £63.1m 116.9%

  • Net debt (£m)

    Net debt (£m)

    £436.9m -0.6%

  • ROCE (%)

    ROCE (%)

    7.7% +20bps

At a glance

There are approximately 8 million light commercial vehicles (LCVs) in operation across Northgate’s two main markets with annual revenues in the sector totalling around £15bn. Our comprehensive offering ensures that we have the ability to adapt to the market’s evolving needs and grow our share of this market.

Our markets

We operate a modern fleet of over 100,000 vehicles across our network. We operate in a growing market which is underpinned by a structural shift towards rental. We partner with customers in the UK & Ireland and Spain at a variety of scales and across multiple sectors.

Chairman’s statement

Chairman’s statement

Chief Executive's review

Chief Executive’s review


  • 1

    Flexible rental

    Customers in this market have no contractual or capital commitment, and so enjoy the most operational flexibility. Vehicles are usually supplied inclusive of maintenance and other services. There is generally strong demand from customers who want the ability to return a vehicle at short notice due to changes in demand through their business cycle. When businesses have more certainty in their outlook, there is a natural shift of customers moving from flexible rental into longer-term commitments in minimum-term rental. Northgate is a market leader competing typically against regional operators.

    Flexible rental
  • 2

    Minimum term

    Minimum-term rentals require customers to commit to a rental period for a minimum of 12 months. This offers them similar benefits to vehicle ownership while limiting their exposure to residual-value risk and initial cash outflow. It is the natural landing point for customers who shift out of the ownership model, and the market is seeing a clear trend out of ownership and into rental. Minimum-term hire is a substantially larger market than flexible rental, approximately twice the size, and continues to grow.

    Minimum term
  • 3

    Vehicle sales

    Sales of used LCVs in the secondary market generate transactions of c.£5 billion a year. End users are typically individual business owners. Being a highly fragmented market, opportunities exist to consolidate to make the market more efficient and transparent.

    Vehicle sales
  • 4

    Sustainability and the low carbon economy

    There is a slow but sure growth in demand for electric and lower emissions vehicles in response to increasing regulation in emissions in both Spain and the UK. In Spain, central Madrid has a ban on driving and parking for vehicles without an eco sticker (LPG, hybrid, natural gas) or blue sticker (fully electric vehicles). Given that metropolitan Madrid represents 20%+ of Spanish GDP, moves such as this will have consequences for company fleets. In the UK & Ireland, more than 99% of new LCV vehicle registrations are still diesel, as it is cost-effective, offering the best combination of fuel economy and payload. In addition, the availability of suitable electric LCVs is minimal. Nonetheless, we are aware that market demands will change with any legislation.

    Sustainability and the low carbon economy

Our business model

Making the most of our key resources…
  • Our scale means we can negotiate directly with manufacturers, enabling us to access the best terms and the widest range of vehicles for our customers.

  • Vehicle rental is our main business. We look to maximise value from our vehicles by maintaining high levels of utilisation. Our diverse product offering ensures we can provide solutions to a range and mix of commercial fleet needs.

  • At the end of a vehicle’s rental life, we maximise returns by selling vehicles through the optimal disposal channel, including our Van Monster brand. We efficiently recycle this capital to support our objectives.

Our strategy

  • 1

    Flexible rental – defend and grow share

    Why is this important?

    Flexible rental is Northgate’s core market, and as a market leader it is important we defend it. Our network and people are set up to succeed in this market. We can win market share using the competitive advantage of our scale and our unique understanding of customer requirements.

  • 2

    Minimum-term hire – selectively gain share

    Why is this important?

    With a low share of a fragmented market, there is significant opportunity for us to grow, and we can serve this market with limited variations to our operating model. We offer a range of minimum-term commitments with levels of service typically associated with flexible rental, these are attractive propositions to cross-sell within our existing flexible customer base.

  • 3

    Broaden our provision of capital-light fleet solutions

    Why is this important?

    There are a number of complementary service solutions across the lifecycle of B2B vehicle rental. Expansion into these areas in an organic or inorganic way, would allow Northgate to provide a comprehensive LCV rental proposition to our customers. Many of these adjacencies provide technology-led solutions to enable customers to manage all aspects of their fleet in the most efficient and cost-effective way.

  • 4

    Optimise and increase participation in the disposal market

    Why is this important?

    We can make the most of our scale through our national Van Monster network in the UK & Ireland, and Northgate Occasion in Spain and thus offer customers the widest range of vehicles and service in the market. This allows us to maximise cash returns on sales of vehicles, reduce the overall holding cost of our vehicles and ensure we can invest in
    rental fleet.

  • 1
    Strategy in action

    Defending and growing our share in Flexible rental


    Our growth will be supported through our business infrastructure. In particular, our processes and systems are being updated to drive our business and our service offering.


    Vehicles on hire

    Tradivel currently has 189 vehicles on hire, a number they can adapt based on the seasonal nature of their maintenance business.

  • 2
    Strategy in action

    Minimum term as the mainstay of our integrated service proposition


    Northgate has a vast service offering and, combined with a large geographical presence, this ensures we are well placed to achieve growth. We can leverage our scale to achieve our growth strategy.


    Vehicles on minimum term hire

    We supply Elecnor with more than 500 vehicles on minimum term hire as part of its core fleet and support them through changes in demand with flexible rental.

  • 3
    Strategy in action

    Supporting the growing trend away from ownership


    Culture is an integral part of our business and enables our people to align behind our growth strategy.


    New vehicles supplied

    The 52 new vehicles Tenon needed were supplied, on our minimum-term contracts, helping our customer realise the benefits of vehicle rental.

  • 4
    Strategy in action

    Minimising holding costs utilising our retail disposal networks


    Our strong leadership teams in each business will ensure we can achieve our strategic opportunities. Our leadership drives cultural change and will therefore help us to achieve growth.


    Vehicles sold

    This year we have sold 32,600 vehicles across the Group, ensuring that we optimise the disposal channel and minimise holding costs.

Find out more

Financial review

Philip Vincent Chief Financial Officer

Our focus is on delivering sustainable profitable growth and driving long-term value

Key performance indicators

Identifying and monitoring performance is critical to inform strategic decision making

Responsible business

Building a sustainable business that delivers for all of our stakeholders