DARLINGTON vehicle hire company Northgate PLC said it is trading in line with expectations and expressed confidence for the full year on the back of increased profit and revenue from its UK and Spanish businesses.

The FTSE 250-listed firm said vehicles on hire in the UK rose 900 between May 1 and September 18 to 48,500. This compares to an increase of 1,600 in the same period last year. Northgate said the rise has been primarily down to the opening of 11 sites which have opened since February 2013.

The group is continuing to expand its UK arm, with four new sites opened since the start of the new financial year, bringing its total branch network to 72.

Average vehicles on hire in the period were up 10 per cent, with 4 per cent of the growth from the new sites and 6 per cent down to organic growth. Hire revenue per rented vehicle is in line with last year, Northgate said.

In Spain, Northgate said vehicles on hire were up 1,800 during the period to reach 36,500, ahead of the 1,300 increase reported in the comparable period in 2013. Average vehicles on hire in the period is up 10 per cent, but hire revenue per rented vehicle is down 1 per cent on the back of adjustments to its fleet mix.

The reduction in hire revenue has been offset, Northgate said, by a rise in the proportion of its customers using the vehicles in a way that reduces running costs, therefore increasing residual values.

The group said it is confident it is well positioned to take advantage of future growth opportunities and said it is trading in line with expectations.