Northgate reveal London expansion plans
Darlington-based vehicle hire firm Northgate has revealed plans to expand its London operations over the next 12 months.
New openings in Luton and Brent Cross are among a wider UK based branch expansion plan which will add up to 20 new depots to the company’s network.
The new sites will take three years to “reach maturity,” and will each host a fleet of around 500 vehicles.
Research from the British Vehicle Rental and Leasing Association suggests the rental sector contributes £14bn per year to the UK economy and supports over 183,000 jobs.
Northgate CEO, Bob Contreras, said: “Over the last six months we’ve launched new depots in Luton, Brent Cross and Huddersfield, and all to great effect. Our focus will now shift to the London market due to the demand for flexible hire in the capital.
“Each new site will have an initial setup cost of £0.2m, covering property, personnel and marketing costs. If the new sites perform in line with our expectations, they should break even in year one and by year three have a ROCE in excess of 16%.”
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