Interim Management Statement

Northgate PLC
29 August 2007


29 August 2007


                                NORTHGATE PLC

                        INTERIM MANAGEMENT STATEMENT



Northgate plc ('Northgate', the 'Company' or the 'Group'), the UK and Spain's
leading specialist in light commercial vehicle hire, publishes its first Interim
Management Statement covering the period 1 May 2007 to 28 August 2007.


Trading is in line with expectations and the Group is on track to achieve its
financial objectives for the current year.


Philip Rogerson, Chairman, said:


'We have made a good start to the new financial year and our business units in
the UK and Spain continue to progress with the execution of their strategic
plans.'



UK

Good utilisation levels, an improved hire rate environment and a strong used
vehicle market have more than compensated for fleet growth that is below our
target level. We are also realising the benefits of the restructuring of the
business carried out in the last financial year.


The combination of these factors has resulted in a further improvement in the
vehicle rental operating margin in the UK.


Looking forward, we expect the economic climate to be favourable to our rental
product as owners of fleets incur higher interest costs and, as a result, may
consider other methods of operating and financing their fleets.


We expect the current limited supply of new vehicles into the market will
continue to restrict supply into the used vehicle market and, consequently, we
believe that residual values will remain strong for at least the remainder of
this calendar year.


Spain

The fleet in Spain continues to grow in line with our strategic plan. The other
key performance indicators including hire rates, utilisation and residual values
are also in line with our objectives.


Current fleet growth is being achieved without increasing the number of
locations, although where appropriate we continue to increase the size of
premises to accommodate future growth.


We are starting to enjoy the full benefits of scale from combined Spanish
purchasing, which commenced part way through last year. These benefits, together
with the operational gearing effects of fleet growth, have improved the
operating margin over the prior year.


On 18 July 2007, we made our first bolt-on acquisition in Spain with the
purchase of the trade and assets of Alquiservicios S.A. a business based in
Orense with a fleet of 700 vehicles. The acquisition, which has already been
absorbed into Record, gives us improved representation in the north west of
Spain along with one new location. In addition it will assist in the
diversification of our customer base.



New territories

We continue to talk to a number of target companies and, in line with our
timetable, aim to be in a position to move forward with an acquisition during
the current financial year. We are, however, not yet in a position to give
guidance on the territory and we expect that the scale of any acquisition will
be smaller than our first entry into Spain.


Treasury

The Group's net debt has not changed materially from the year-end and the
gearing ratio (defined as net debt as a percentage of shareholders' funds after
the deduction of intangible assets) has fallen to 273% as at 31 July 2007.
Although base rates in the UK have increased by 50 bps since 1 May 2007, as a
consequence of our sterling debt being almost entirely fixed, we have not had to
bear additional interest on our sterling borrowings. The fixed rate proportion
of the Group's net debt has been increased to 63% since 30 April 2007 when it
was 57%.


Share buy backs

In recent weeks the Company has acquired for cancellation 600,000 of its own
Ordinary shares. These opportunistic share buy backs follow the volatility in
the equity markets that has led to significant decline in the market price of
the Company's shares. The Board believe that the buy backs will not affect the
Group's ability to fund its future expansion and they are earnings enhancing for
remaining shareholders.


Appointment of non-executive director

Our search for an additional non-executive director has progressed well and we
expect to announce an appointment in the near future.


Outlook

We are confident of a good outcome for the current year and continue to believe
the longer-term prospects for the business remain very encouraging.



For further information, please contact:

Northgate plc                                      01325 467558
Steve Smith, Chief Executive
Gerard Murray, Finance Director

Hogarth Partnership Limited                        020 7357 9477
Andrew Jaques
Barnaby Fry
Anthony Arthur


Notes to Editors:

Northgate plc rents light commercial vehicles and sells a range of fleet
products to businesses via a network of hire companies in the UK, Republic of
Ireland and Spain. Its NORFLEX(R) product gives businesses access to a flexible
method to acquire as many commercial vehicles as they need, without tying up
capital or entering a fixed term contract.


Further information regarding Northgate plc can be found on the Company's
website: http://www.northgateplc.com



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