Final Results

Northgate PLC
5 July 2000


Contacts: Steve Smith, Managing Director
          Phil Moorhouse, Finance Director   Tel: [phone] (on 5/7/00)
          Northgate plc                      Tel: [phone] (thereafter)
          www.northgateplc.com

          Peter Otero/Steve Jacobs
          Financial Dynamics                 Tel: [phone]


                                       
                                 NORTHGATE PLC
            Preliminary Results for the year ended 30th April 2000

Northgate plc, the UK's leading specialist in light commercial vehicle hire,
announces its preliminary results for the year ended 30th April 2000.

*  Pre-tax profit up 46% to £24.3m (1999: £16.6m)

*  Operating profit up 33% to £37.9m (1999: £28.6m)

*  Earnings per share up 48% to 27.9p (1999: 18.9p)

*  Strong gross cash flows with EBITDA at £152.6m up by 24%

*  Fleet increased by 22% to 32,500 vehicles (1999: 26,600 vehicles)


Chairman Michael Waring comments:

'Last year we embarked on a five year strategy for growth in which our stated
aim was to double the size of the business. The organisational structure that
has been put in place to ensure the sound management of this strategy is
proving effective and will allow us to continue on course to achieve this
target.
Since January this year we have seen an improvement in underlying hire rates.
With demand for our hire product, NORFLEX, remaining strong, prospects for the
future development of our business remain very encouraging.'


CHAIRMAN'S STATEMENT

Last year the board embarked on a five-year strategy for growth in which our
stated aim was to double the size of the business.  The organisational
structure that has been put in place to ensure the sound management of this
strategy is proving effective and will allow us to continue on course to
achieve this target.

Our pre-tax profits have grown by 46% to £24.3m (1999: £16.6m), our fleet at
30th April had increased by 22% to 32,500 vehicles (1999: 26,600) and the
number of operational sites had increased by 11 to 41.  The steps undertaken
to improve our performance on the sale of used vehicles have also been
successful.

With earnings per share at 27.9 p (1999: 18.9p) the board has decided to
propose a final dividend of 9.07p (1999: 8.5p) to shareholders on the register
at close of business on 21st July 2000, making a total dividend for the year
of 13.25p (1999: 12.5p)

Your Board is proposing to introduce a new share option scheme, broadly
similar to the Executive Incentive Scheme which was approved at the Annual
General Meeting last year, to replace the existing Long Term Incentive Plan.
In addition, as was indicated in last year's report and accounts, we are also
proposing to shareholders a new all-employee share scheme, in line with the
Government's proposals to be contained in the 2000 Finance Act.  We firmly
believe that wider share ownership by all our staff will have long term
benefits for the company, shareholders and, of course, the staff themselves.

We will continue to embrace the internet and its related benefits to the
extent that it will create efficiencies within our business by improving both
communication with our suppliers and the service we can provide to our
customers.  However, we will not lose sight of the fact that the internet is
intended to support the efficiencies of the existing operations where we must
continue to supply the right product to customers based on personal service.

Since January this year we have seen some improvement in underlying hire
rates.  With demand for our hire product, NORFLEX, remaining strong, prospects
for the future development of our business remain very encouraging.


Michael Waring
Chairman


OPERATIONAL REVIEW

New locations

We planned to open three hire companies and six smaller branches over the past
year.  We have exceeded these targets and have, in fact, opened and commenced
trading from 4 new hire companies in Preston, Croydon, Barking and Ipswich and
branches in 7 other locations.  The branch roll-out programme has developed
particularly well and confirms our view that this structure is the most
appropriate to take our business forward and to achieve the network of 100
locations envisaged in our five-year plan.  Since the year end we have opened
3 further locations and now operate from 35 hire companies and 9 branches with
good overall coverage of most of the United Kingdom.

Fleet growth

In the year to 30th April 2000, our fleet has increased by 22% to 32,500
vehicles.

This has been achieved by a mixture of organic growth from businesses open at
1st May 1999 (3,500 vehicles), growth from the new depots referred to above
(1,875 vehicles) and from the purchase of the commercial vehicle fleet of
Europcar in July 1999 (525 vehicles).  The Europcar transaction involved us
purchasing their light commercial vehicle fleet and renting it back to them
thereby allowing them to concentrate on their core business of car rental.

Whilst the fleet has grown substantially, the mix has remained largely
unchanged, with light commercial vehicles (up to 3.5 tonnes) representing 80%
of the fleet.  The balance of the fleet is made up of cars and other
commercials, primarily 7.5 tonne vehicles.  Through buy-back arrangements, we
have eliminated any residual risk on this heavier vehicle category.

Despite the large number of new and 'immature' depots, we have maintained our
utilisation levels at around 90%.  This tight control remains key to our
successful management of the business.

Hire rates

The early part of this year has seen some signs of improvement in hire rates.
Following a period of relatively stable prices we believe that, whilst the
market remains competitive, there is an opportunity for us to obtain some
modest hire rate increases in the next 12 months.

Used vehicle sales

One of our key objectives for the year was the reduction of losses on the sale
of used vehicles.  Our target at the start of the financial year was to reach
a balanced position for ongoing disposals by the close of the year.  We are
pleased to report that, through a combination of higher depreciation rates
(applied since 1st May 1998), the extension of the average vehicle replacement
period and an improvement in management techniques in the vehicle sales
division, we have achieved our target in all material respects.

We launched 'Norcom', our new disposal centre for refurbished vehicles on 1st
May 2000.  Early results from this operation combined with the factors above
give us confidence that we can maintain our balanced position on disposals in
the coming year.

The future

The Board remains convinced that the light commercial vehicle rental market is
well short of the maturity of the equivalent market in the United States and
of its associated sector, the car rental industry in the United Kingdom.  We
therefore remain confident that the market will continue to grow to enable us
to achieve our five year growth objective.

Included among the factors currently fuelling the growth in the rental market
for light commercial vehicles is the development of the home shopping trade
through the Internet and cable TV.  Fulfilment is the key to the success or
failure of e-business and the flexibility offered by NORFLEX is particularly
suited to e-retailers wishing to 1develop in this area.  Alternatively, should
e-retailers choose major logistics companies to distribute their goods, then
these businesses are already amongst our largest customers.

We developed our first website in 1996.  We now have sites for Northgate plc,
NORFLEX, our vehicle sales division and our central reservations facility.
Further development of on-line booking for all our operations will be
completed within the next 12 months.

We continue to believe our success is, in no small part, due to the flexible
approach we adopt to meeting customers' needs.  This approach demands people
be willing, and able, to make decisions and we therefore encourage an
entrepreneurial culture throughout the business, which is then integrated into
our framework of key operational and financial controls.

At the end of the first year, our five-year strategy for growth is on schedule
and we look forward to continuing the expansion of the business in the year
ahead.


FINANCIAL REVIEW

Operating profit

Operating profit grew by 33%, increasing to £37.9m (1999: £28.6m).  This
reflected the increase in revenue earned both from locations open at the
beginning of the year and those which commenced trading during the period.
The number of locations opened was greater than planned, with resultant higher
start up costs.  The full benefit of these openings will flow through in
subsequent years.

Operating margin at 14.5% showed an improvement over the previous year
(13.1%).  This is mainly a reflection of the improvement in the disposal of
used vehicles during the period referred to in the Operational Review.

Interest

The net interest charge for the year was £13.6m, an increase of 13.4% over
1999.  The increase resulted from the continuing growth in the vehicle fleet,
while we benefited from lower average base rates in the period.

To manage exposure to interest rates, our policy is to have in place financial
instruments covering a proportion of our borrowings over the longer term.
These currently consist of a combination of Caps, Collars and Swaps.

Taxation

The tax charge of £7.4m comprises tax payable on the profit on ordinary
activities and, as in previous years, includes a full charge for deferred tax.

The effective rate of tax is 30.5% and represents the UK corporation tax rate
adjusted for minor disallowable items.  We estimate the effective rate going
forward will be 31% and we anticipate that this will not be significantly
affected by the proposed deferred taxation accounting standard, currently FRED
19, as full provision is already made.

Earnings per share

The calculated earnings per share for the year was 27.9p - an increase of 48%
on the 1999 figure of 18.9p.  A final dividend of 9.07p is proposed making a
total dividend for the year of 13.25p, an increase of 6% over last year.  The
dividend is 2.1 (1999:1.5) times covered.

Cash flow and funding

We continue to generate strong gross cash flows.  EBITDA for the year was
£152.6m, up by £29.1m from 1999.  Vehicle depreciation in the period amounted
to £107.6m, which is based upon depreciation rates ranging from 20% to 33% on
a straight line basis across the fleet.  This £152.6m contributed to the
levels of investment in capital expenditure of £217m, invested mainly in the
vehicle rental fleet but also in the expansion of the depot network.

Our borrowings increased by 24% to £213.7m in line with fleet growth.  The
finance facilities available to the group are a mixture of hire purchase
funding, revolving loans and overdraft, secured primarily against the value of
the vehicle hire fleet.  We have sufficient headroom within our current
facilities to finance our expansion plans.

The vehicle hire fleet consists mainly of light commercial vehicles which are
readily saleable through our own vehicle sales company.  This liquidity of the
vehicle hire fleet and the management of interest rate exposure readily
support the level of gearing at 189% which is low compared to the industry
norm.  Interest cover was 2.8 times.

Change of accounting policy

Manufacturers' volume related bonuses, previously credited to profits on
receipt, are now spread over the life of the asset to which they relate.  This
change of accounting policy was as a result of the introduction during the
year of FRS15.

Cash flows and EBITDA remain unchanged under this new policy.  There is now a
deferred income credit of £49.4m in the balance sheet to be released to profit
over the life of the current vehicle rental fleet.

Throughout these accounts, the comparative figures for 1999 have, where
appropriate, been restated to reflect this change of accounting policy.

Year 2000

In the last annual report and accounts the directors reported on the Year 2000
and they continue to monitor the situation.  As at the date of this report,
the directors are not aware of any significant factors which have arisen, or
that may arise, which will affect the activities of the business.  Whilst any
future costs associated with this issue cannot be quantified they are not
anticipated to be significant.


NORTHGATE PLC: PRELIMINARY RESULTS
GROUP PROFIT ANNOUNCEMENT FOR THE 12 MONTHS ENDED 30TH APRIL 2000


                                            2000          1999
                                            £000          £000
                                                    (restated)
                                                              
TURNOVER                                 260,794       218,623
                                                              
                                                              
OPERATING PROFIT                          37,942        28,620
                                                              
                                                               
INTEREST PAYABLE -NET                    (13,617)      (12,010)
                                                              
                                                              
PROFIT ON ORDINARY ACTIVITIES                                 
BEFORE TAXATION                           24,325        16,610
                                                              
Taxation - UK                              7,429         5,167
                                                              
PROFIT FOR THE FINANCIAL YEAR             16,896        11,443
                                                              
                                                              
NORTHGATE PLC: PRELIMINARY RESULTS
GROUP PROFIT ANNOUNCEMENT FOR THE 12 MONTHS ENDED 30TH APRIL 2000 (continued)


                                            2000          1999
                                            £000          £000
                                                    (restated)
                                                              
PROFIT FOR THE FINANCIAL YEAR             16,896        11,443
                                                              
DIVIDENDS                                                     
                                                              
Preference paid                               25            21
Interim paid                               2,528         2,409
Final proposed                             5,486         5,131
                                                              
                                           8,039         7,561
                                                              
PROFIT TRANSFERRED TO RESERVES             8,857         3,882
                                                              
EARNINGS PER ORDINARY SHARE - BASIC        27.9p         18.9p
(see note)
                                                              
DILUTED EARNINGS PER ORDINARY SHARE        27.8p         18.8p
(see note)
                                                              
DIVIDENDS PER ORDINARY SHARE                                  
                                                              
Interim paid                               4.18p         4.00p
Final proposed                             9.07p         8.50p
                                                              
TOTAL DIVIDEND FOR YEAR                   13.25p        12.50p
NORTHGATE PLC: PRELIMINARY RESULTS
SUMMARY CONSOLIDATED BALANCE SHEET
30TH APRIL 2000




                                            2000          1999
                                            £000          £000
                                                    (restated)
                                                              
Fixed assets                             344,147       295,691
                                                              
Current assets                            75,636        77,544
                                                              
Creditors : amounts falling 
due within one year                     (108,166)      (92,449)

                                                              
Net current liabilities                  (32,530)      (14,905)
                                                              
Total assets less current liabilities    311,617       280,786
                                                              
Creditors : amounts falling due after                         
more than one year                      (142,828)     (125,287)
                                                              
Provisions for liabilities and charges    (6,626)       (7,718)
Accruals and deferred income             (49,359)      (43,926)
                                                              
                                         112,804       103,855
                                                              
Called up share capital                    3,532         3,530
                                                              
Share premium account                     44,992        44,902
                                                              
Reserves                                  64,280        55,423
                                                              
Shareholders' funds                      112,804       103,855
                                                              
                                                               
Net borrowings                          (213,736)     (172,816)
NORTHGATE PLC: PRELIMINARY RESULTS
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
FOR THE 12 MONTHS ENDED 30TH APRIL 2000

                                            2000          1999
                                            £000          £000
                                                    (restated)
                                                              
PROFIT FOR THE FINANCIAL YEAR             16,896        11,443
Dividends                                 (8,039)       (7,561)
                                                              
                                           8,857         3,882
                                                              
Issue of ordinary share capital (net          92           609
of expenses)
                                                              
NET INCREASE IN SHAREHOLDERS' FUNDS        8,949         4,491
                                                              
OPENING SHAREHOLDERS' FUNDS                                   
As previously reported                   134,164       122,155
Prior period adjustment                  (30,309)      (22,791)
                                                              
As restated                              103,855        99,364
                                                              
                                                              
CLOSING SHAREHOLDERS' FUNDS              112,804       103,855


NORTHGATE PLC: PRELIMINARY RESULTS
CONSOLIDATED CASHFLOW STATEMENT
FOR THE 12 MONTHS ENDED 30TH APRIL 2000

                                                2000                  1999
                                       £000     £000       £000       £000
                                                                (restated)
                                                                         
CASH INFLOW FROM OPERATING                   144,914               126,273
ACTIVITIES
                                                                         
RETURNS ON INVESTMENTS AND                                               
SERVICING OF FINANCE                         (13,079)             (11,551)
                                                                         
TAXATION                                     (6,309)              (7,606)
                                                                         
CAPITAL EXPENDITURE AND FINANCIAL                                        
INVESTMENT
                                                                         
Purchase of vehicles for hire      (112,941)          (138,448)          
Sale of vehicles for hire            58,805             53,515          
Other items (net)                    (5,087)            (1,894)          
                                                                         
NET CASH OUTFLOW FROM CAPITAL                                            
EXPENDITURE AND FINANCIAL                                                
INVESTMENT                                   (59,223)             (86,827)
                                                                         
EQUITY DIVIDENDS PAID                         (7,659)              (7,214)
                                                                         
CASH INFLOW BEFORE USE OF LIQUID                                         
RESOURCES AND FINANCING                       58,644               13,075
                                                                         
MANAGEMENT OF LIQUID RESOURCES                                           
                                                                         
Cash (placed on) /withdrawn from                 (9)                  153
deposit
                                                                         
FINANCING                                                                
                                                                         
Issue of ordinary shares (net of          92                609          
expenses)
Increase in borrowings                   421             21,546          
Capital element of vehicle related                                       
hire purchase payments               (73,586)           (44,362)
                                                                         
NET CASH OUTFLOW FROM FINANCING              (73,073)             (22,207)
                                                                         
DECREASE IN CASH FOR THE YEAR                (14,438)              (8,979)


NORTHGATE PLC: PRELIMINARY RESULTS
RECONCILIATION OF NET CASHFLOW
TO MOVEMENT IN NET DEBT

                                              2000            1999
                                              £000            £000
                                                        (restated)
                                                                  
DECREASE IN CASH FOR THE YEAR             (14,438)         (8,979)
                                                                  
FINANCING                                                         
                                                                  
Increase in borrowings                       (421)        (21,546)
Capital element of vehicle related         
hire purchase payments                     73,586          44,362
Cash withdrawn from deposit                     9            (153)
Change in net debt resulting from          
cashflows                                  58,736          13,684
New hire purchase obligations             (99,656)        (61,290)
                                                                  
MOVEMENT IN NET DEBT FOR THE YEAR         (40,920)        (47,606)
                                                                  
NET DEBT AT 1st MAY 1999                 (172,816)       (125,210)
                                                                  
NET DEBT AT 30th APRIL 2000              (213,736)       (172,816)


NORTHGATE PLC: PRELIMINARY RESULTS

NOTES

Earnings per ordinary share

  The  calculation of basic earnings per ordinary share in respect of the year
  to   30th  April  2000  is  based  on  the  profit  attributable  to  equity
  shareholders of £16,871,000 (1999: £11,422,000) and the weighted average  of
  60,405,822  (1999:  60,374,894) 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 358,000  (1999:  395,000)  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  60,721,888  (1999:   60,762,101)
  (including  those shares held by the employee trust in connection  with  the
  Goode Durrant Long Term Incentive Plan).

The  results  for  the years to 30th April 2000 and 30th April  1999  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 1999  have
been delivered to the Registrar of Companies.

The  Report  and Accounts will be mailed to shareholders not later  than  14th
July 2000.

Michael Waring                             Chairman
Phil Moorhouse                             Finance Director