Capital Markets Event

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 FY17	Target FY18	Target FY19	Target FY20
Rental	Average VoH Growth (Q4 vs Q4 Prior Year)	-1.7%	Mid to high single digit % growth per annum
	Marginal ROCE on New and Redeployed Capital		Substantially higher than Group WACC
	Rental Margin %*	14.2%	Minimum of 2% pts growth by FY20
Disposal	Units Sold	33,800	High single digit % growth per annum
	Net Profit per Unit (£)	976	Decline (Depreciation unwind)	Broadly Flat
Group	Corporate Overhead/Sales	1%	Remaining flat to reducing over the period
	Group ROCE	10.5%	Substantially higher than Group WACC

UK		Actual FY17	Target FY18	Target FY19	Target FY20
Rental	Average VoH Growth (Q4 vs Q4 Prior Year)	-7.5%	Broadly flat	Mid to high single digit % growth pa
	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 3rd party stock
	Net Profit per Unit (£)	703	Decline                         (Depreciation  unwind)	Broadly Flat as increased retail                      penetration offsets third party mix

Spain		Actual FY17	Target FY18	Target FY19	Target FY20
Rental	Average VoH Growth (Q4 vs Q4 Prior Year)	4.4%	>10%	Continued double digit % growth pa
	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 per Unit (Eur)	1,589	Decline (Depreciation  unwind)	Broadly Flat

 * 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

 

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