Final Results

Northgate PLC
3 July 2002



                             Wednesday 3 July 2002

                                 NORTHGATE PLC

             PRELIMINARY RESULTS FOR THE YEAR ENDED 30th APRIL 2002

Northgate plc, the UK's leading specialist in light commercial vehicle hire,
announces its preliminary results for the year ended 30th April 2002.

•         Turnover up 6% to £277.8m (2001: £261.8m)

•         Operating profit up 6% to £45.1m (2001: £42.6m)

•         Pre-tax profit up 17% to £31.7m (2001: £27.1m)

•         Strong cash flow with EBITDA up 11% at £132.0m

•         Basic earnings per share up 14% to 35.8p (2001: 31.4p)

•         Dividends increase by 7% to 15.0p (2001: 14.0p) per share

•         Fleet increases by 12% to 40,500 vehicles

•         Fleet utilisation remains at 90%

•         Profits on disposal of used vehicles achieved in every quarter
          throughout the year

•         Gearing reduced to 170% (2001: 173%)

•         Interest cover at 3.37 times (2001: 2.8 times)


Michael Waring, Chairman, commented:

'We have now completed the third year of our five year Strategy for Growth in
which our goal is to double the size of Northgate's business.  I am pleased to
report that we remain firmly on track.

'Furthermore, we have retained our focus and achieved improvements in most of
the important measurements of the performance of our business.  We have also
continued to generate a strong cash flow, growing the fleet by 12% while
reducing gearing levels that were already conservative by industry standards.

'Despite more than doubling the fleet over the past 5 years, we believe that we
are a long way from tapping the full potential of the expanding UK rental
market.  In addition, we are convinced that there are excellent prospects for
growth in continental Europe.  We look forward to updating you on our progress,
especially our plans for European expansion, during the forthcoming reporting
period.

'Our faith in our ability to continue to successfully grow Northgate remains
undiminished.'

Full statement and results attached.



For further information, please contact:

Northgate plc                                                      01325 467558
Steve Smith, Chief Executive
Phil Moorhouse, Finance Director

Hogarth Partnership Limited                                        020 7357 9477
Andrew Jaques
John Olsen
Tom Leatherbarrow



CHAIRMAN'S STATEMENT TO SHAREHOLDERS

This report covers the completion of the third year of our five year Strategy
for Growth, which we announced in 1999.  I am able to report that we are well on
track to meet the target set out to shareholders at the time, namely to double
the size of your company's business within the five year period ending 30th
April 2004.

It is worth reviewing the progress we have made over the past three years by
reference to some of the main indicators, namely fleet growth, hire sites and
earnings per share.

Our opening position and that at the end of each subsequent financial year is
given below.  The cumulative percentage change in each measurement is shown in
brackets.


                      Fleet size               Hire sites              Basic e.p.s.

30th  April 1999      26,600                   30                      19.1p

30th  April 2000      32,500  (+22%)           41  (+37%)              28.1p  (+47%)

30th  April 2001      36,100  (+36%)           48  (+60%)              31.4p  (+64%)

30th April 2002       40,500  (+52%)           61 (+103%)              35.8p  (+87%)


Shareholders should take note of the significant gross cash generation that
Northgate is able to achieve at current levels of growth as evidenced by the
fact that gearing has remained almost constant over this period, moving from
166% to only 170%, despite an increase in the fleet of 52%.

While we remain firmly of the view that there is plenty of room for the growth
of NORFLEX in the UK (our five year Strategy for Growth is focused solely on the
development of our business in the UK), we have previously advised shareholders
of our intention to expand into continental Europe.  Extensive research into the
various markets has confirmed our belief that they are less developed than the
UK and that our NORFLEX product would be well received.  Whilst we are
determined to take a cautious approach to our expansion in this area, and
shareholders would expect no less of us, we look forward to updating you on our
progress during the forthcoming reporting period.

Despite the macro-economic difficulties of the past year, our management is to
be congratulated on keeping their focus and continuing to achieve improvements
in most of the important measurements of the performance of our business.

My thanks as always go to my fellow directors and the staff of Northgate who
have worked tirelessly in the interests of shareholders and to shareholders for
their continued support.


OPERATIONAL REVIEW

Network

We plan to open between 12 and 15 locations in each year of the five year
Strategy for Growth.  In the year to 30th April 2002, we actually opened 2 new
hire companies and 11 new branches, bringing our total number of locations to
61.  The majority of these new sites are in the North but Aberdeen and Swindon
in particular have enhanced our geographic coverage.

Vehicle fleet

During the month of April 2002, our vehicle fleet passed the 40,000 milestone,
ending the year at 40,500.  This represented an increase of 12% over the
previous year.

Once again, growth has not resulted in any change to the fleet mix with light
commercial vehicles still dominating at 80% of the total fleet.  We also
continue to purchase the premier products available in the market, both to
ensure rental customers are offered the best available and to protect residual
values when we dispose of our vehicles.

Utilisation

Our focus on tight management of the fleet ensures that, as with previous years,
we can report an average utilisation for the period of 90%.  This is split
between mature locations where generally over 90% is achieved, and sites not yet
mature where the utilisation averaged 84%.

Hire rates

As reported in the Chairman's Statement in the Interim Report to 31st October
2001, an economy with low interest rates and low inflation does not lend itself
to increasing prices to customers.  As a result of these economic factors and
the need to remain competitive in the marketplace, prices have remained
relatively static over the year.

Used vehicle sales

As forecast in the Operational Review in last year's Report and Accounts, the
internal measures we have taken to improve the results from the disposal of used
vehicle sales, combined with a reasonably firm residual market, have been
successful and we have achieved our target of break even, or better, on vehicle
sales in each quarter of this financial year.  We see no reason currently why we
cannot maintain this position in the year ahead.

Brand Development and Product Innovation

Rental products

Whilst most of our business is still generated by selling either through the
individual brands of our network of local hire companies, or by using our
product NORFLEX to sell on a national basis, we have continued the development
of three other channels to complement these areas.

'Sale and Rentback' is used where potential customers own their fleet.  Using
this product we can offer the opportunity to owners to sell their fleet to us
and then rent it back, thereby allowing them immediately to convert capital tied
up in assets into cash for use in their core business.

Our 'Central Reservations' operation based in Birmingham gives customers the
ability to procure all their nationwide vehicle hire requirements through just
one telephone call.  Due to the comprehensive coverage of our network, we are
able to source over 95% of these requirements using our own vehicle fleet,
resorting to third parties in general only when the hire is in a location where
we are not represented or where the vehicle is one we do not operate.

'Wannavan.com' effectively replicates Central Reservations by replacing
telephone calls with the Internet for customers preferring to use this channel.
It is aimed at both the retail market and short-term business users.

Complementary non-rental products

Whilst we remain focused on our core business of van rental, we have commenced
the development of complementary, vehicle-related but non-rental products,
through our 'Norfleet' division.

Our first offerings were in the provision of discounted vehicle parts and mobile
servicing for customers who rent from us but also have their own fleets.  This
makes use of both our significant purchasing power and our service network and
helps tie in customers with services other than rental.

Our most recent addition in this area, in March this year, was the launch of '
Norfleet Vehicle Monitoring', our telematics product.  To date this has been
received positively by our customers and we look forward to developing this
product further over the year ahead.

People

A significant factor in our success has been the commitment and dedication of
our employees.  In order to assist in the recruitment and retention of the best
people, we have introduced a number of initiatives in the last year.  In
particular, we have launched an induction programme for new employees, revised
our personal development programme and introduced a flexible benefits package
allowing about a quarter of our employees to tailor the structure of their
remuneration to their individual needs.

Current trading and outlook

We remain confident that we will be able to continue to develop and grow our
rental business in the UK beyond 2003, through maturing our new sites and by
extending both our network and the overall rental market.  In addition, it is
our intention over the next 12 months to further develop the complementary
non-rental products we offer to customers to support our continued growth.

There are no one-off magical solutions and the key to success is in grinding out
small improvements in the daily operations of the business.  As we continue to
strive towards this objective, we are well placed to seize upon any
opportunities that arise, given our position as the UK's leading van rental
company. The current year has started well and we remain confident about our
continued ability to deliver on the objectives of the five year Strategy for
Growth.

As explained in the Chairman's Statement, we intend to add to the development of
rental and complementary products in the UK with our first step into Europe,
thereby producing a third distinct avenue for growing the business.  We look
forward to updating shareholders on our progress in this area during the
forthcoming reporting period.

FINANCIAL REVIEW

Sales and operating profit

Sales increased by 6% to £277.8m (2001: £261.8m) and operating profit increased
by 6% to £45.1m (2001: £42.6m).

Revenue from rental operations increased by 9% across the network, a combination
of growth from both new and more mature sites.  Including the 13 sites opened in
this financial year, there are currently a total of 20 sites which have been
open for less than two years. The full potential from those sites will be
realised in subsequent years.  Revenue from our vehicle sales operation was just
under 3% less than last year, largely as a result of a marginal reduction in
volumes sold into the used vehicle market.

Operating margins were virtually unchanged at 16.2%.  As referred to in the
operating review, increases in margins are difficult in a low inflation and
interest rate environment.  Also, the investment in new locations inevitably has
a drag on margins in their initial trading years.

Interest costs and pre-tax profit

Interest costs in the year have fallen by 13% to £13.4m (2001: £15.5m) as UK
interest rates have continued to fall.  Interest costs are the second largest
direct vehicle cost in our business after depreciation.  Lower interest rates
are therefore a significant benefit.  As a result of both the increase in
operating profits and reduction in interest costs, pre-tax profit increased by
almost 17% to £31.7m (2001: £27.1m).  Pre-tax margins improved to 11.4% (2001:
10.4%).

Taxation

As anticipated, the adoption of FRS 19 (Deferred Taxation) has had no adverse
impact on the Company as our policy has always resulted in full provision for
deferred tax liabilities.

The effective tax rate of 31.4% comprises corporation tax payable on ordinary
activities.

Earnings per share

Basic earnings per share were 35.8p, an increase of 14% on the 2001 figure of
31.4p.

Dividend

The Directors recommend a final dividend of 10.35p per share (2001: 9.6p),
making a total for the year of 15.0p (2001:14.0p) - an increase of 7.1%.  It
will be paid on 12th September 2002 to shareholders on the register at 12th July
2002. The dividend is 2.4 times covered (2001: 2.2x).

Cash flow, funding and treasury

We continue to manage our exposure to interest rates.  Our policy is to have in
place financial instruments covering a proportion of our borrowings over the
longer term.  We have taken advantage of the low interest rates to improve our
cover still further by adding instruments of £20m during the year.

Our net borrowings increased by 8% over the corresponding period to £232.9m
(2001: £214.7m). £258.9m of the gross debt is vehicle related and is secured
against the fleet value of £325.1m. More than 54% of our gross borrowings are
repayable after more than one year.

The finance facilities currently available to the group are in excess of £444m
and are a mixture of hire purchase funding, revolving loans and overdraft,
secured primarily over the value of the vehicle hire fleet.  Only 17% of the
facilities are subject to any covenants. Interest cover at 3.37 times has
improved over last year's level of 2.8 times.

Gross cash generation continues to be strong with EBITDA for the year £132m, up
by 11% from 2001.  Capital investment was £183m, being £176m in the vehicle hire
fleet and £7m in non-vehicle expenditure on property and other equipment,
largely relating to the expansion of the depot network.

The vehicle hire fleet consists mainly of light commercial vehicles which are
readily saleable, predominantly through our own vehicle sales company.  The
liquidity of the hire fleet and the management of interest exposure adequately
support the level of gearing at 170%, which remains low compared to the industry
norm.  Gearing has in fact reduced from last year's figure of 173%,
demonstrating our ability to achieve these growth levels without increasing
gearing.

Return on capital

Our five year Strategy for Growth is based upon expanding our depot network to
around 100 locations.  The continued investment in new sites reduces margins in
the short term whilst these businesses are maturing.

Our return on capital (calculated as operating profit over average capital
employed, being shareholders' funds plus net borrowings) is 12.7% and our return
on equity (calculated as profit after tax over average shareholders' funds) is
16.6%.

Key Performance Indicators

Over the last two years we have revised our method of measuring performance by
introducing Key Performance Indicators ('KPIs').  These KPIs target those areas
of the business which are critical to the success of the Group, namely those
relating to finance, customers, people and processes.  These measurements are
supported by business plans prepared by each profit centre and updated by
regular rolling forecasts.  Our focus on these measures ensures that we achieve
the continuous improvements we are seeking for the business.


Consolidated Profit and Loss Account
for the 12 months ended 30th April 2002

                                                                                                 2002           2001
                                                                                                            Restated
                                                                                 Notes           £000           £000

Turnover                                                                                      277,829        261,801


Operating profit                                                                               45,055         42,569

Net interest payable                                                                         (13,381)       (15,459)

Profit on ordinary activities
before taxation                                                                                31,674         27,110
Tax on profit on ordinary activities                                                          (9,953)        (8,054)


Profit for the financial year                                                                  21,721         19,056

Dividends
Preference paid                                                                                    25             25
Interim paid                                                                                    2,819          2,680
Final proposed                                                                                  6,275          5,812
                                                                                                9,119          8,517

Profit transferred to reserves                                                                 12,602         10,539



Earnings per ordinary share - basic                                                  1          35.8p          31.4p

Diluted earnings per ordinary share                                                  1          35.6p          31.3p

Dividends per ordinary share
Interim paid                                                                                    4.65p           4.4p
Final proposed                                                                                 10.35p           9.6p
Total dividend for the year                                                                     15.0p          14.0p


Summary Consolidated Balance Sheet
30th April 2002


                                                                                                 2002           2001
                                                                                                            Restated
                                                                          Notes                  £000           £000


Fixed assets                                                                                  344,924        318,353


Current assets                                                                                 89,078         82,244

Creditors: amounts falling due within one year                                              (149,754)      (133,869)

Net current liabilities                                                                      (60,676)       (51,625)

Total assets less current liabilities                                                         284,248        266,728
Creditors: amounts falling due after more than
  one year                                                                                  (142,031)      (136,620)
Provisions for liabilities and charges                                                        (5,170)        (5,816)

                                                                                              137,047        124,292

Capital and reserves
Called up share capital                                                                         3,542          3,539
Share premium account                                                                          45,471         45,321
Reserves                                                                                       88,034         75,432
Shareholders' funds                                                                           137,047        124,292

Net borrowings                                                                              (232,899)      (214,675)


Reconciliation of Movements in Shareholders' funds
for the 12 months ended 30th April 2002


Profit for the financial year                                                                  21,721         19,056
Dividends                                                                                     (9,119)        (8,517)
                                                                                               12,602         10,539

Issue of ordinary share capital (net of expenses)                                                 153            336

Net increase in shareholders' funds                                                            12,755         10,875

Opening shareholders' funds
 As previously reported                                                                       123,427        112,804
 Prior period adjustment                                                     2                    865            613

 Restated                                                                                     124,292        113,417

Closing shareholders' funds                                                                   137,047        124,292




Consolidated Cash Flow Statement
for the 12 months ended 30th  April 2002
                                                                                                 2002           2001
                                                                                                            Restated
                                                                                                 £000           £000

Net cash inflow from operating activities                                                     127,057        117,388

Returns on investments and servicing of finance                                              (13,265)       (15,266)

Taxation                                                                                      (7,250)            695

Capital expenditure and financial investment
  Purchase of vehicles for hire                                                             (172,603)      (162,944)
  Sale of vehicles for hire                                                                    68,866         72,384
  Other items, net                                                                            (6,173)        (5,366)

Net cash outflow from capital expenditure
   and financial investment                                                                 (109,910)       (95,926)


Acquisitions                                                                                  (6,150)              -

Equity dividends paid                                                                         (8,631)        (8,166)

Cash outflow before use of liquid resources
   and financing                                                                             (18,149)        (1,275)

Management of liquid resources
 Cash withdrawn from deposit                                                                       39             23

Financing
  Issue of ordinary shares (net of expenses)                                                      153            336
  Decrease in borrowings                                                                      (1,735)       (18,052)
  Capital element of vehicle related hire purchase payments                                 (133,091)      (103,745)
  Cash inflow from new vehicle related hire purchase agreements                               166,258        141,334

Net cash inflow from financing                                                                 31,585         19,873

Increase in cash for the year                                                                  13,475         18,621



Reconciliation of net cash flow to movement in net debt

                                                                                                2002           2001
                                                                                                           Restated
                                                                                                £000           £000

Increase in cash for the year                                                                 13,475         18,621

Financing
  Decrease in borrowings                                                                       1,735         26,968
  Capital element of vehicle related hire purchase payments                                  133,091        103,745
  Cash inflow from new vehicle related hire purchase agreements                            (166,258)      (141,334)
  Cash withdrawn from deposit                                                                   (39)           (23)

Changes in net debt resulting from cash flows                                               (17,996)          7,977
  New hire purchase obligations                                                                    -        (8,916)
  Hire purchase agreements acquired with subsidiary                                            (228)              -

Movement in net debt for the year                                                           (18,224)          (939)

Net debt at 1st May                                                                        (214,675)      (213,736)

Net debt at 30th April                                                                     (232,899)      (214,675)


Notes

1. Earnings per share
The calculation of basic earnings per ordinary share in respect of the year to
30th April 2002 is based on the profit attributable to equity shareholders of
£21,696,000 (2001: £19,031,000) and the weighted average of 60,560,376 (2001:
60,578,305) ordinary shares in issue (excluding those shares held by an employee
trust in connection with the Goode Durrant Long Term Incentive Plan).

Diluted earnings per ordinary share have been calculated on the basis of
earnings described above and assume that 162,500 shares (2001: 217,000)
remaining exercisable under the Goode Durrant Share Option Scheme had been fully
exercised at the commencement of the relevant period, such that the weighted
average number of shares is 60,876,578 (2001: 60,837,249) (including those
shares held by an employee trust in connection with the Goode Durrant Long Term
Incentive Plan).

2. Basis of preparation
The results have been prepared on the basis of the accounting policies set out
in the last annual report and accounts as amended to reflect the adoption of
FRS19, Deferred Taxation, which has resulted in a prior period adjustment of
£865,000 in respect of deferred tax assets.

The cash flow statement amounts for capital expenditure and financing for the
year ended 30th April 2001 have been grossed up by £141,334,000 to more fully
reflect the cash flows arising from refinancing through hire purchase
agreements.  Previously these amounts were shown net.  There is no impact on net
cash flow or net debt.

The results for the years to 30th April 2002 and 30th April 2001 and the balance
sheets at those dates are abridged.  Full accounts for these periods have been
prepared on which the Auditors of the company have made unqualified reports and
which did not include a statement under Section 237 (2) or (3) of the Companies
Act 1985. The Accounts for the year ended 30th April 2001 have been delivered to
the Registrar of Companies.

The Report and Accounts will be mailed to shareholders not later than 
18th July 2002.

Michael Waring    Chairman
Phil Moorhouse    Finance Director





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