Northgate plc, a Darlington-based commercial vehicle hire company, has reported strong results and continued growth.
In its preliminary results, the company’s pretax profits were at £83 million – a £31.8 million increase on last year’s profits, and has also seen a 45% increase in dividend per share to 14.5p, up from 10p in 2014.
Furthermore, the company’s net debt has also decreased to £337.8 million from last year’s figure of £346.1 million, as a result of the weakening Euro rate.
Over the last year, Northgate saw a growth of 1,000 vehicles on hire in the UK and 900 in Spain.
The company’s chief executive, Bob Contreras, said: “It’s been another year of progress across the group and it’s pleasing to see this translate into a strong set of results.
“We remain particularly focused on targeting growth with small and medium sized customers across the UK and Spain and there have been encouraging increases in the number of vehicles on hire in both countries.”
Northgate also announced that Bob Mackenzie will be retiring from his role of chairman at the company’s AGM in September.
He will be replaced by Andrew Page, who joined the group as Senior Independent Director on Tuesday, December 2nd, 2014.
Contreras continued: “I would like to thank Bob Mackenzie as he retires from the Chairman role. Under his leadership since 2010 the Group has more than doubled profits, greatly reduced debt and reintroduced a dividend.
“His guidance will be missed, but we are fortunate to be having someone of Andrew Page’s calibre stepping into the role and we look forward to delivering further returns to shareholders as we move into the next chapter for the Group.
“I would also like to thank Jan for his tremendous efforts and wise counsel over this period. He has made a considerable contribution to the Group and our Spanish business.”