Interim Results

Northgate PLC
11 January 2001


Contacts: Steve Smith, Managing Director     
          Phil Moorhouse, Finance Director   Tel: [phone] (on 11/1/01)
          Northgate plc                      Tel: [phone] (thereafter)
          www.northgateplc.com               
                                             
          Peter Otero                        Tel: [phone]
          Financial Dynamics                 


                                 NORTHGATE PLC
                                Interim Results

Northgate  plc, the UK's leading specialist in light commercial vehicle  hire,
announces its interim results for the six months ended 31st October 2000.
  
- Operating Profit up 17% to £21.6m (1999: £18.4m)

- Pre-tax profits increased by over 13% to £13.9m (1999: £12.2m)

- Earnings per share up 13% to 15.9p (1999: 14.1p)

- Interim dividend declared at 4.4p per share, up 5% on last year

- Vehicle Fleet increased by 15% to 34,750 (1999: 30,100).

- New hire companies opened in Coventry, Stoke, Exeter and Dublin in addition
  to new branch openings in Norwich and Gloucester.  Total group network now
  numbers 48 locations nationwide.


Chairman Michael Waring comments:

'The  continuing  move  towards outsourcing and the development  of  the  home
shopping  trade confirms our view that the potential for growth in  the  light
commercial  vehicle  rental market is significant.  We  look  forward  to  the
ongoing  expansion  of  our  business and remain confident  in  its  long-term
prospects.'
                                       
                              CHAIRMAN'S STATEMENT

During  the past six months we have made good progress towards achieving   the
targets  we set for the Company in the 5-year strategy for growth outlined  in
our  annual  report  in  1999.   We remain on track to  achieve  our  goal  of
doubling the size of Northgate's business by the year 2003.

Results

Turnover  is  up  by  25% to £153.5m (1999: £123.1m), with  operating  profits
rising  by  17% to £21.6m (1999: £18.4m).   Pre-tax profits have increased  by
over  13% to £13.9m (1999: £12.2m) and earnings per share by a like amount  to
15.9 pps (1999:14.1 pps).

EBITDA  for  the six months to 31st  October has increased by 19%  to  £86.9m.
Our  deferred  income  reserve,  which represents  money  already  earned  and
received from manufacturers, is now in excess of £54m and will be released  to
profits over the remaining life of the vehicles to which it relates.

Dividend

The Board has decided to declare an interim dividend of 4.4p (1999: 4.18p) per
share,  an  increase  of  5%. This will be payable on 16th  February  2001  to
shareholders on the register at close of business on 26th  January 2001.

Operational review

Since  the  last  financial  year-end we have opened  new  hire  companies  in
Coventry, Stoke, Exeter and Dublin and new branches in Norwich and Gloucester.
The group's network now extends to 48 locations.    Properties currently under
negotiation  should allow us to achieve our target of 12/15 new  locations  in
the current financial year.

The  opening  of  the  new locations and the demand for  our  rental  product,
NORFLEX,  both  from  existing and new customers, has resulted  in  the  fleet
rising  to  34,750  vehicles  at 31st October 2000.   The  fleet  mix  remains
constant  with light commercial vehicles (up to 3.5 tonnes) still representing
around 80% of the fleet

Our tight control of the fleet continues with utilisation averaging 90% across
the whole fleet, including all new depot and branch openings.

In  my  last  statement, I referred to the opportunity we  had  identified  to
improve  hire  rates.     Having made some progress in  this  regard,  we  are
optimistic that we can build upon this in the future.  The benefit of the hire
rate  improvement  already  achieved has been  offset  by  a  continuing  soft
residual market which, when taken together with the ongoing investment in  new
locations, has held back operating margins.

All Employee Share Scheme

Our  new all employee share scheme, which was approved by shareholders at  the
AGM  in  September, has now been successfully launched with over  25%  of  our
employees making contributions out of their pay towards buying shares  in  the
Company.  We are delighted by the level of commitment shown by our employees.

Outlook

The  continuing  move  towards outsourcing and the  development  of  the  home
shopping  trade confirms our view that the potential for growth in  the  light
commercial vehicle rental market is significant.

We  look forward to the ongoing expansion of our business and remain confident
in its long-term prospects.

CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                                                        
                                         Six             Six      Twelve
                                   months to       months to   months to
                                    31.10.00        31.10.99     30.4.00
                         Notes   (Unaudited)     (Unaudited)            
                                        £000            £000        £000
                                                                        
Turnover                   1         153,546         123,085     260,794
                                                                        
Operating profit           1          21,645          18,440      37,942
                                                                        
Interest payable, net                (7,789)         (6,244)    (13,617)
                                                                        
Profit on ordinary                                                      
activities before                     13,856          12,196      24,325
taxation
                                                                        
Tax on profit on           2         (4,240)         (3,682)     (7,429)
ordinary activities
                                                                        
Profit attributable to                 9,616           8,514      16,896
shareholders
                                                                        
Dividends 
- non-equity                             (13)            (12)        (25)
  preference shares
- equity ordinary shares               (2,679)         (2,534)     (8,014)

                                                                        
Profit transferred to                  6,924           5,968       8,857
reserves
                                                                        
                                                                        
Earnings per ordinary      3           15.9p           14.1p       27.9p
share - basic
                                                                        
Diluted earnings per       3           15.8p           14.0p       27.8p
ordinary share
                                                                        
Dividend per ordinary                  4.40p           4.18p      13.25p
share
                                                                        
                                                                        

All current and prior year trading relates to continuing operations

                                                                        
SUMMARY CONSOLIDATED BALANCE SHEET                                            
                           
                                         31.10.00    31.10.99    30.4.00
                                      (Unaudited) (Unaudited)           
                                             £000        £000       £000
                                                                        
Fixed Assets                                                            
Vehicles for hire                         348,957     319,983    331,588
Other tangible assets and                  13,525      10,301     12,559
investments
                                                                        
                                          362,482     330,284    344,147
                                                                        
Current Assets                                                          
Stocks                                      8,245       4,339      5,827
Debtors                                    52,666      60,015     54,290
Investments                                    15          15         10
Cash at bank and in hand                   16,772      11,476     15,509
                                                                        
                                           77,698      75,845     75,636
                                                                        
Creditors : amounts falling due           123,122     103,226    108,166
within one year
                                                                        
Net current liabilities                  (45,424)    (27,381)   (32,530)
                                                                        
Total assets less current                 317,058     302,903    311,617
liabilities
                                                                        
Creditors : amounts falling                                             
due after more than one year              136,307     138,174    142,828
Provisions for liabilities                  6,626       7,718      6,626
and charges
Accruals and deferred income               54,074      47,134     49,359
                                                                        
                                          120,051     109,877    112,804
                                                                        
Capital and reserves                      120,051     109,877    112,804
                                                                        
                                                                        

RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
                                                                        
                                              Six         Six     Twelve
                                        months to   months to  months to
                                         31.10.00    31.10.99    30.4.00
                                      (Unaudited) (Unaudited)           
                                             £000        £000       £000
                                                                        
Profit for the period                       9,616       8,514     16,896
Dividends                                 (2,692)     (2,546)    (8,039)
                                            6,924       5,968      8,857
                                                                        
Issue of ordinary share                                                 
capital (net of expenses)                     323          54         92
                                                                        
Net increase in                             7,247       6,022      8,949
shareholders' funds
                                                                        
Opening shareholders' funds               112,804     103,855    103,855
                                                                        
Closing shareholders' funds               120,051     109,877    112,804
                                                                        
                                                                        
                                                                        
CONSOLIDATED CASH FLOW STATEMENT

                                              Six        Six     Twelve
                                        months to  months to  months to
                                         31.10.00   31.10.99    30.4.00
                                      (Unaudited) (Unaudited)           
                                             £000       £000       £000
                                                                       
Net cash inflow from operating             81,237     60,390    144,914
activities
Returns on investments and servicing      (7,793)    (5,676)   (13,079)
of finance
Taxation                                    1,480         43    (6,309)
Capital expenditure                      (14,181)   (40,785)   (59,223)
Equity dividends paid                     (5,498)    (5,092)    (7,659)
Management of liquid resources                 76         23        (9)
Financing                                (55,983)   (27,424)   (73,073)
                                                                       
Decrease in cash for the period             (662)   (18,521)   (14,438)
                                                                       
                                                                       
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT                       
                                               
                                                                       
                                                                       
Decrease in cash for the period             (662)   (18,521)   (14,438)
Decrease/(increase) in borrowings          16,928    (6,178)      (421)
Capital element of vehicle related         48,294     33,655     73,586
hire purchase payments
Cash (withdrawn from)/placed on              (76)       (23)          9
deposit
                                                                       
Change in net debt resulting from          64,484      8,933     58,736
cash flows
New hire purchase obligations            (72,170)   (45,519)   (99,656)
                                                                       
Movement in net debt for the period       (7,686)   (36,586)   (40,920)
Opening net debt                        (213,736)  (172,816)  (172,816)
                                                                       
Closing net debt                        (221,422)  (209,402)  (213,736)
                                                                       
                                                                       
                                                                       
RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING
ACTITVITIES         
                                                                       
                                                                       
Operating profit                           21,645     18,440     37,942
Depreciation                               60,485     51,566    109,179
Increase in working capital               (5,608)   (12,824)    (7,645)
Other items                                     -          -          5
Movement in deferred income reserve         4,715      3,208      5,433
                                                                       
Net cash inflow from operating             81,237     60,390    144,914
activities
                                                                       

Unaudited Notes

1.   Segmental Analysis

Turnover and operating profit arise exclusively from vehicle hire.

2.   Tax

The charge for taxation for the six months to 31st October 2000 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 31st October 2000 is based on the profit attributable to equity
shareholders of £9,603,000 (31.10.99 - £8,502,000) (30.04.00 - £16,871,000)
and the weighted average of 60,557,282 (31.10.99 - 60,364,329) (30.04.00 -
60,405,822) 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 the
earnings described above and assume that 222,000 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 60,801,236 (31.10.99 - 60,789,290) (30.04.00 - 60,721,888)
(including those shares held by an employee trust in connection with the Goode
Durrant Long Term Incentive Plan).

4.   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.

The figures for the year ended 30th April 2000 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.