Commercial vehicle hire firm Northgate Plc (LON:NTG) has reported a 10% rise in revenue to £349.7mln, though much of increase was driven by vehicle sales.
Northgate made a pre-tax profit of £31mln for the six months ended October 31 and included a £3.1mln hit related to vehicle depreciation rates, down from £40mln in the same period of the previous year.
Kevin Bradshaw, Northgate chief executive, described it as a “period of reset” as the company announced it would increase the interim dividend by 7% to 6.1p per share.
He also explained that the company is expecting its full-year performance will be ‘skewed towards the second half’.
"This has been a period of reset as we lay the foundations to enable Northgate to deliver our strategy,” Bradford said.
“There are already signs of the strategy working with 6% growth in closing VOH, 60% of which has been driven by minimum term products.
“Our self help agenda in the UK remains firmly underway and Spain continues to outperform in its rental business justifying further investment as it accelerates its next phase of minimum term roll out.”
Bradshaw added: “I am confident we will see further benefits of the strategy and investment coming through in subsequent reporting periods, which will generate strong growth in value for our shareholders."