Interim Results

Northgate PLC
10 January 2002



                                NORTHGATE PLC

Thursday, 10 January 2002



                               INTERIM RESULTS
                   FOR THE SIX MONTHS ENDED 31 OCTOBER 2001

Northgate plc, the UK's leading specialist in light commercial vehicle hire,
announces its interim results for the half year to 31 October 2001.

Highlights

*                    Continued strong performance in face of difficult
                     economic conditions
*                    Turnover increased by 5% from £129.7m to £136.5m.
*                    Operating profits increased by 8% to £23.3m (2000: 
                     £21.6m).
*                    Pre-tax profits up by over 16% to £16.2m (2000: £13.9m)
*                    EPS up by 15% to 18.3p (2000: 15.9p).
*                    Dividend increased by 5.7% to 4.65p (2000: 4.40p).
*                    Fleet utilisation remains at an average of 90%.
*                    On target for 60 locations by 30 April 2002.


Michael Waring, Chairman, commented:

'I am pleased to report another excellent performance for the six months to 31
October 2001.


Despite difficult economic conditions over the last six months, we have
continued to make excellent progress.  The robust nature of the Northgate
business is demonstrated by increased turnover, healthy profits and an
improved return for our investors.  We have also further expanded the
geographic coverage of the business.


The traditional drivers of the business remain strong.  Fleet utilisation has
averaged 90%.  Hire rates have been maintained despite a low interest rate and
low inflation environment and we have generated an increased contribution from
the disposal of used vehicles.

We continue to believe there are still excellent growth prospects in the UK
market.  However, we are also examining opportunities to take the Northgate
concept into Europe.'

For further information, please contact:

Northgate plc                             01325 467558
Steve Smith, Chief Executive             (On 10 January 2001: 0207 357 9477)
Phil Moorhouse, Finance Director

Hogarth Partnership Limited               020 7357 9477
Andrew Jaques
Tom Leatherbarrow

Notes to Editors

Northgate plc rents light commercial vehicles to businesses from a network of
hire companies throughout the UK and Ireland.  Their NORFLEX product gives
businesses access to a flexible and risk-free method to acquire as many
commercial vehicles as they require.  The company is currently half way
through its five-year Strategy for Growth plan designed to double the size of
the business.

Further information regarding Northgate plc can be found on the Company's
website:

http://www.northgateplc.com

Chairman's Statement to shareholders:

We are now half way through our five year Strategy for Growth the goal of
which is to double the size of Northgate's business by 30 April 2004.   We
remain firmly on track to deliver this goal.

The business has continued its development and demonstrated its robust
qualities while generating an improved return for investors, despite the
difficult economic conditions during the last half year.

Results

Turnover increased by 5% from £129.7m to £136.5m. Operating profits increased
by 8% to £23.3m (2000: £21.6m).  Pre-tax profits were up by over 16% to £16.2m
(2000: £13.9m).  The result is an earnings per share up by 15% to 18.3p (2000:
15.9p).

Once again, these results have been achieved without any increase in gearing
which has actually reduced from 174% at 30 April 2001 to 166%.  This confirms
our contention that the strong cash flows generated by our business allow us
to be self-funding at current levels of growth.

Lower interest rates, in conjunction with this lower gearing, have benefited
us through a reduced interest charge.  Interest cover increased to 3.3 times
(2000: 2.8 times).

Dividend

The Board has declared an interim dividend of 4.65p (2000: 4.40p) per share,
an increase of 5.7%, payable on 9 February 2002 to shareholders on the
register as at the close of business on 18 January 2002.

Operational Review

The network continues to expand and, since the year end, we have added
locations in Aberdeen, Chester, Hunslett, Kendal, Morecambe, Rochdale and
Scunthorpe, bringing our total number of active hire sites to 55.  With
further properties currently under negotiation, we expect to achieve our
target of 60 locations by 30 April 2002.

Coupled with the expansion of the network, continued demand for our rental
product NORFLEX has resulted in the fleet increasing by 2,350 units to 38,450
vehicles as at 31 October 2001.  Utilisation of the fleet remains tightly
controlled and averaged 90% in the six month period.

Despite both low interest rates and a low inflation rate, a combination which
makes price increases difficult, we are pleased to report that we have been
able to maintain hire rates at their year end levels and therefore not lost
the progress made in the previous year.

A stronger market for our used vehicles combined with the ongoing improvements
made in the marketing of our used stock has led to an increased contribution
from this area of operation.

The markets

We remain of the view that the UK market is far from mature and that we will
continue to grow the fleet size beyond that envisaged in our five year
Strategy for Growth.

In our April 2001 operational review, we referred to research on the
commercial vehicle rental market we had commissioned from Datamonitor and, in
particular, to companies moving closer to the concept of 'usership' rather
than 'ownership'.

During the period, there has been speculation in the press that a number of
substantial corporate fleets are examining alternative vehicle acquisition
strategies.  The format these deals finally take remains to be seen but this
publicity has ensured businesses of all sizes will be made more aware of the
benefits of outsourcing using a product such as NORFLEX.

We are continuing to investigate opportunities in Europe to enable us to take
our first step in that market and begin the process of replicating our success
in the UK.  However, as always, we will proceed with caution.

People

The commitment of our employees is a major contributor to our growth and we
are delighted they are now afforded the opportunity to share in the rewards.

In its first year of operation, some 26% of those employees eligible to join
participated in our All Employee Share Scheme.  For its second year,
commencing in January 2002, this has increased to 38%, representing a
significant proportion of our workforce who have a direct interest in the
success of our business.

Current trading and Outlook

There is a high degree of uncertainty over the direction the UK economy will
take in the next six months.  In such a climate, the dynamics of a rental
business, and particularly one with the flexibility of Northgate, are
extremely attractive to both customers and investors alike.

Trading since the end of the period is in line with expectations and we remain
confident in our ability to grow the business in all areas and deliver our
five year Strategy for Growth.



Consolidated Profit and Loss Account
for the 6 months ended 31st October 2001

                                              Six            Six       Twelve 
                                        months to      months to    months to 
                            Notes        31.10.01       31.10.00      30.4.01 
                                                        Restated     Restated 
                                       (Unaudited)    (Unaudited)              
                                             £000           £000         £000 
                                                                              
  Turnover                  1             136,466        129,661      261,801 
                                                                              
                                                                              
  Operating profit          1              23,307         21,645       42,569 
                                                                              
  Net interest payable                     (7,135)        (7,789)     (15,459) 
                                                                              
  Profit on ordinary                                                          
  activities                                                                  
  before taxation                          16,172         13,856       27,110 
  Tax on profit on          2              (5,062)        (4,240)      (8,054) 
  ordinary activities                                                         
                                                                              
  Profit for the                           11,110          9,616       19,056 
  financial year                                                              
  Dividends                                (2,824)        (2,692)      (8,517) 
                                                                              
  Profit transferred to                     8,286          6,924       10,539 
  reserves                                                                    
                                                                              
  Earnings per ordinary     3               18.3p          15.9p        31.0p 
  share - basic                                                               
                                                                              
  Diluted earnings per      3               18.2p          15.8p        30.9p 
  ordinary share                                                              
                                                                              
  Dividends per ordinary                    4.65p           4.4p        14.0p 
  share                                                                       
                                                                              
  All current and prior year trading relates to continuing operations           
                                                      
                                                                              
  Statement of Total Recognised Gains and Losses                              
  for the 6 months ended 31st October 2001               

                                                      Six         Six    Twelve
                                                   months      months    months
                                                       to          to        to 
                                                 31.10.01    31.10.00  30.04.01 
                                                             Restated  Restated 
                                               (Unaudited) (Unaudited)          
                                                     £000        £000      £000 
                               Notes
                                                                              
  Profit for                                       11,110       9,616    19,056 
  the period                                                                  
  Prior                          5                     865                    
  period                                                                      
  adjustment                                                                  
  Total gains                                       11,975                    
  recognised                                                                  
                                                                              
  Summary Consolidated Balance Sheet                                          
  31st October 2001                                                           

                                              31.10.01    31.10.00      30.4.01 
                                                          Restated     Restated 
                                            (Unaudited) (Unaudited)             
                                                  £000        £000         £000 
          
  Fixed assets                                                                
  Tangible assets                                                             
  Vehicles for hire                            312,787     294,883      302,473 
  Other fixed assets                            18,106      13,525       15,880 
  Goodwill on                                      146           -            - 
  acquisition                                                                 
                                               331,039     308,408      318,353 
                                                                              
                                                                              
  Current assets                                                              
  Stocks                                         6,782       8,245        6,685
  Debtors                                       54,318      52,666       51,296 
  Investments                                        -          15            - 
  Cash at bank and in                           29,803      16,772       24,263 
  hand                                                                        
                                                                              
                                                90,903      77,698       82,244 
                                                                              
                                                                              
  Creditors: amounts                           149,946     123,122      133,869 
  falling due within                                                          
  one year                                                                    
                                                                              
  Net current                                  (59,043)    (45,424)     (51,625)
  (liabilities)/assets                                                        
                                                                              
                                                                              
  Total assets less                            271,996     262,984      266,728 
  current liabilities                                                         
  Creditors: amounts                                                          
  falling due after                                                           
  more than                                                                   
  one year                                     133,592     136,307      136,620 
  Provisions for                                 5,821       6,013        5,816 
  liabilities and                                                             
  charges                                                                     
                                                                              
                                               132,583     120,664      124,292 
                                                                              
                                                                              
  Capital and                                  132,583     120,664      124,292 
  reserves                                                                    
                                                                              
                                                                              
  Consolidated Cash Flow Statement                                            
  for the 6 months ended 31st                    
  October 2001                                    Six         Six      Twelve   
                                            months to   months to   months to 
                                             31.10.01    31.10.00     30.4.01   
                                                         Restated    Restated   
                                           (Unaudited) (Unaudited)              
                                                 £000        £000        £000   
         
                                                                              
  Cash inflow from operating                   64,405      52,646     117,388 
  activities                                                                  
  Returns on investments and                   (6,754)     (7,793)    (15,266) 
  servicing of finance                                                        
  Taxation                                       (986)      1,480         695 
  Capital expenditure                         (55,351)    (48,844)    (95,926) 
  Acquisitions                                   (717)          -           - 
  Equity dividends paid                        (5,813)     (5,498)     (8,166) 
  Management of liquid                             71          76          23 
  resources                                                                   
  Financing                                    14,859       7,271      19,873 
                                                                              
  Increase/(decrease) in cash                   9,714        (662)     18,621 
  for the year                                                                
                                                                              
                                                                              
  Reconciliation of Net Cash Flow                                             
  to Movement in Net Debt                                                     

  Increase/(decrease)                           9,714        (662)     18,621 
  in cash for the                                                           
  year                                                                        
  Decrease/(increase)                           9,195      16,928      26,968 
  in borrowings                                                             
  Capital element                                                             
  of vehicle                                                                  
  related hire                                                                
  purchase payments                            61,765      48,294     103,745 
  Cash inflow from                            (85,814)    (63,254)   (141,334) 
  new hire purchase                                                           
  agreements                                                                  
  Cash (withdrawn                                 (71)        (76)        (23) 
  from)/placed on                                                             
  deposit                                                                     
                                                                              
  Change in net                                (5,211)      1,230       7,977 
  debt resulting                                                              
  from cash flows                                                             
                                                                              
  New hire purchase                                 -      (8,916)     (8,916) 
  obligations                                                                 
  Hire purchase                                  (228)          -           - 
  obligations                                                                 
  acquired with                                                               
  subsidiaries                                                                
                                                                              
  Movement in net                              (5,439)     (7,686)       (939) 
  debt for the                                                                
  period                                                                      
  Opening net debt                           (214,675)   (213,736)   (213,736) 
                                                                              
  Closing net debt                           (220,114)   (221,422)   (214,675) 
                                                                              


Unaudited Notes

1. Segmental Analysis

All trading activities relate to the business of vehicle hire. The
group operates in all material respects in the United Kingdom and
turnover relates to customers in the United Kingdom.

2. Tax

The charge for taxation for the six months to 31 October 2001 is based
on the estimated effective rate for the year.

3. Earnings per ordinary share

The calculation of basic earnings per ordinary share in respect of the
six months to 31 October 2001 is based on the profit attributable to
equity shareholders of £11,097,000 (31.10.00 - £9,603,000) (30.4.01 -
£19,031,000) and the weighted average of 60,532,803 (31.10.00 -
60,557,282) (30.4.01 - 60,578,305) ordinary shares in issue (excluding
those shares held by an employee trust in connection with the group's
Long Term Incentive Plan and All Employee Share Scheme).

Diluted earnings per ordinary share have been calculated on the basis
of the earnings described above and assume that 215,000 shares
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 60,872,393 (31.10.00 -
60,801,236) (30.4.01 - 60,837,249) (including those shares held by an
employee trust in connection with the group's Long Term Incentive Plan
and All Employee Share Scheme).

4. Notes to the Cashflow Statement

(i) Reconciliation of operating profit to net cash flow from operating
activities

                                                  Six         Six      Twelve   
                                            months to   months to   months to 
                                             31.10.01    31.10.00     30.4.01   
                                                         Restated    Restated   
                                           (Unaudited) (Unaudited)              
                                                 £000        £000        £000   
  Operating                                    23,307      21,645      42,569 
  profit                                                                      
  Depreciation                                 42,266      36,609      76,193 
  Increase in                                  (1,168)     (5,608)     (1,384) 
  working capital                                                             
  Other non-cash                                    -           -          10 
  items                                                                       
                                                                              
  Net cash inflow                              64,405      52,646     117,388 
  from operating                                                              
  activites                                                                   
                                                                              
                                                                              
(ii) Acquisition

On 1 October 2001 the group acquired the entire share capital of
Vickers (Northern) Limited for a final consideration of £776,000,
including goodwill of £146,000.  The impact on the results for the
period is immaterial.

5. Reconciliation of Movements in shareholders' funds

                                                  Six         Six      Twelve   
                                            months to   months to   months to 
                                             31.10.01    31.10.00     30.4.01   
                                                         Restated    Restated   
                                           (Unaudited) (Unaudited)              
                                                 £000        £000        £000   

  Profit for the                               11,110       9,616      19,056 
  financial year                                                              
  Dividends                                    (2,824)     (2,692)     (8,517) 
                                                8,286       6,924      10,539 
  Issue of                                          5         323         336 
  ordinary share                                                              
  capital                                                                     
                                                8,291       7,247      10,875 
                                                                              
  Opening                                                                     
  shareholders                                                                
  funds                                                                       
  As previously                               123,427    112,804      112,804 
  reported                                                                    
  Prior period                                    865        613          613 
  adjustment                                                                  
  As restated                                 124,292    113,417      113,417 
                                                                              
  Closing                                     132,583    120,664      124,292 
  shareholders                                                                
  funds                                                                       
                                                                              

As a result of the adoption of Financial Reporting Standard 19 Deferred
Taxation a prior period adjustment of £865,000

in respect of deferred tax assets has been incorporated in the
preparation of these financial statements.

The figures for the period to 31 October 2000 have been reclassified to
reflect the impact of FRS15 as explained in the Annual Report & Accounts
to 30 April 2001.

6. Basis of preparation

The interim 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.

The cashflow statement amounts for capital expenditure and financing for
the six months ended 31 October 2000 and the year ended 30 April 2001
have been grossed up by £63,254,000 and £141,334,000 respectively 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 cashflow or net debt.

The figures for the year ended 30 April 2001 are extracted from the
audited accounts for that year which have been delivered to the Registrar
of Companies, and on which the auditors issued an unqualified report and
which did not include a statement under section 237 (2) or (3) of the
Companies Act 1985.