Pre close Trading Update

Northgate PLC
04 May 2006


4 May 2006


                                 Northgate plc
                            Pre-Close Trading Update



Northgate plc ('Northgate' or the 'Group'), the leading commercial vehicle hire
company in the UK and Spain, is today issuing an update on trading ahead of its
close period before the release of its final results for the year ended 30 April
2006.


Overall, the Group's performance has been and remains in line with the Board's
expectations.


The UK business (excluding recently acquired Arriva Vehicle Rental Limited
('AVR')), has experienced fleet growth in the last six months in line with the
Board's expectations and utilisation has been maintained at 90%. Northgate's UK
business continues to operate in a competitive market and hire rates have
remained under pressure, particularly in the third quarter of the financial
year. This has led to hire rate reductions during the second half of the
financial year being slightly ahead of those experienced during the first half.
However, residual values have continued to improve in line with the Board's
objective to break even on vehicle disposals for the full financial year.


As announced on 3 February 2006, the Group acquired the entire share capital of
AVR, a leading UK rental provider operating through 33 branches in the UK with a
fleet of over 11,000 vehicles. Since the acquisition, the AVR business has been
successfully integrated into Northgate. Branches where duplication occurred with
an existing Northgate branch have been closed. As a result, the enlarged branch
network of Northgate now has 88 locations. The integration process has proceeded
in line with the Board's expectations, and no unforeseen issues have emerged.


Both Fualsa and Record Rent, Northgate's businesses in Spain, continue to
achieve combined fleet growth in line with the Board's expectations. The
acquisition of the remaining 51% of Record Rent is scheduled to take place
shortly after the statutory accounts for 2005 have been approved and audited. It
is expected that this process will be completed before the end of May 2006.


Northgate's preliminary results will be announced on 4 July 2006.



                                     -Ends-


For further information, please contact:



Northgate plc Tel: [phone]

Steve Smith, Chief Executive Officer

Gerard Murray, Group Finance Director



Hogarth Partnership Limited Tel: [phone]

Andrew Jaques

Barnaby Fry

Anthony Arthur


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

http://www.northgateplc.com



                      This information is provided by RNS
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