Van hire company Northgate said it expects a “weaker
performance” when full year results will be published in April and
is in talks with its banks to amend its debts covenants.
The company, which operates both in Spain and the UK, said in
its interim management statement that since December 2008 market
conditions have deteriorated, with further declines in used vehicle
residual values and a softening in demand for vehicle
rental.
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These are likely to translate into significantly lower profits
than market expectations, the company said.
The company said it had initiated discussions with its banks
with a view to reshaping its covenants and debts arrangements as a
potential impairment of the value of its assets.
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