Northgate PLC Capital Markets Event (6163S)

TIDMNTG

RNS Number : 6163S

Northgate PLC

04 October 2017

 
 4 October 2017   This announcement contains 
                          inside information 
 

Northgate plc

Capital Markets Event

Northgate plc ("Northgate") will host a planned event for investors and analysts in London today. The event starts at 9.30am and will provide further detail on Northgate's strategy for delivering attractive returns to shareholders, together with clear KPIs and medium term objectives.

The event will be hosted by Kevin Bradshaw, CEO, and will include presentations by Frank Hayes, Managing Director - UK and Fernando Cogollos, Managing Director - Spain.

A copy of the presentation will be available from 9.30am GMT on our website: www.northgateplc.com.

Kevin Bradshaw commented:

"We have now concluded our strategic review of the business and today I look forward to taking the market through the significant opportunities to deliver shareholder value in both our core and adjacent markets. This will be driven through a combination of self-help and initiatives that will grow our market share in these markets."

Presentations will include the following targets in respect of the financial years ending 30 April 2018-2020.

 
 Group                        Actual       Target       Target   Target 
                               FY17         FY18         FY19     FY20 
---------  ----------------  -------  ---------------  -------  ------- 
 Rental     Average VoH       -1.7%        Mid to high single digit 
             Growth (Q4                       % growth per annum 
             vs Q4 Prior 
             Year) 
---------  ----------------  -------  --------------------------------- 
            Marginal                         Substantially higher 
             ROCE on New                        than Group WACC 
             and Redeployed 
             Capital 
---------  ----------------  -------  --------------------------------- 
            Rental Margin     14.2%        Minimum of 2% pts growth 
             %*                                     by FY20 
---------  ----------------  -------  --------------------------------- 
 Disposal   Units Sold        33,800      High single digit % growth 
                                                   per annum 
---------  ----------------  -------  --------------------------------- 
            Net Profit         976        Decline        Broadly Flat 
             per Unit                   (Depreciation 
             (GBP)                         unwind) 
---------  ----------------  -------  ---------------  ---------------- 
 Group      Corporate           1%        Remaining flat to reducing 
             Overhead/Sales                     over the period 
---------  ----------------  -------  --------------------------------- 
            Group ROCE        10.5%          Substantially higher 
                                                than Group WACC 
---------  ----------------  -------  --------------------------------- 
 
 
 UK                         Actual       Target         Target      Target 
                             FY17         FY18           FY19         FY20 
---------  --------------  -------  ---------------  -----------  ---------- 
 Rental     Average VoH     -7.5%       Broadly         Mid to high single 
             Growth (Q4                   flat            digit % growth 
             vs Q4 Prior                                        pa 
             Year) 
---------  --------------  -------  ---------------  ----------------------- 
            Rental Margin   13.5%          Minimum of 2.5% pts growth 
             %*                                      by FY20 
---------  --------------  -------  ---------------------------------------- 
 Disposal   Units Sold      20,400            Strong growth driven 
                                           by VoH de-fleets, selective 
                                              fast cycling and 3(rd) 
                                                   party stock 
---------  --------------  -------  ---------------------------------------- 
            Net Profit       703        Decline          Broadly Flat as 
             per Unit                 (Depreciation      increased retail 
             (GBP)                       unwind)        penetration offsets 
                                                          third party mix 
---------  --------------  -------  ---------------  ----------------------- 
 
 
 Spain                      Actual       Target        Target    Target 
                             FY17         FY18          FY19       FY20 
---------  --------------  -------  ---------------  ---------  -------- 
 Rental     Average VoH      4.4%         >10%         Continued double 
             Growth (Q4                                 digit % growth 
             vs Q4 Prior                                      pa 
             Year) 
---------  --------------  -------  ---------------  ------------------- 
            Rental Margin   15.8%        Minimum of 1.5% pts growth 
             %*                                    by FY20 
---------  --------------  -------  ------------------------------------ 
 Disposal   Units Sold      12,700          Strong growth driven 
                                             by VoH de-fleets and 
                                            selective fast cycling 
---------  --------------  -------  ------------------------------------ 
            Net Profit      1,589       Decline          Broadly Flat 
             per Unit                 (Depreciation 
             (Eur)                       unwind) 
---------  --------------  -------  ---------------  ------------------- 
 

* Rental Margin % represents underlying operating profit (excluding disposals) divided by hire income (excluding costs passed through to customers).

No new current trading information will be disclosed during the Capital Markets Event.

For further information, please contact:

 
 Northgate plc 01325 467558 
 Kevin Bradshaw, Chief Executive Officer 
  David Tilston, Chief Financial Officer 
 
 
 MHP Communications 020 3128 8100 / [e-mail] 
 Andrew Jaques 
  Barnaby Fry 
 Simon Hockridge 
 Ollie Hoare 
 

Notes to Editors:

Northgate plc is the leading light commercial vehicle hire business in the UK, Ireland and Spain by fleet size and has been operating in the sector since 1981.

Northgate's core business is the hire of light commercial vehicles to businesses on a flexible or term basis, giving customers the ability to manage their vehicle fleet requirements in a way which can adapt to changing business needs without the requirement to enter into a long term commitment. Further information regarding Northgate plc can be found on the Company's website: www.northgateplc.com

This information is provided by RNS

The company news service from the London Stock Exchange

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October 04, 2017 02:00 ET (06:00 GMT)