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Northgate shares rise as vehicle hire number beat expectations

Northgate shares were up 37p or 9.85% changing hands at 412.8p.
Hire numbers were ahead of expectations in the UK and Spain

Northgate Plc (LON:NTG)  shares advanced after the commercial vehicle hire firm highlighted a return to growth in the UK market.

In a trading update for the three months ended April 30, the company said it performed in line with management's expectations.

It said that in the UK vehicle on hire (VOH) volumes had increase by 3.2% year-on-year to 40,900 – which was ahead of guidance which was previously given as ‘broadly flat’.

READ: Tuesday's market movers

Northgate highlighted stronger demand in both the flexible and minimum term hire markets.

At the same time, the company told investors that the Spanish group continued to see the strong growth reported previously in the fourth quarter. Here, VOH had grown at 14.1% in the most recent quarter, to 41,500, ahead of expectations for 10% growth.

In Ireland, the performance was said to be “somewhat lower” than expected reflecting some uncertainty in the market and a decline in utilisation rates in the early part of the quarter.

The company will release financial results for the full year on June 26.

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