Our Markets are undergoing significant structural changes which we are well placed to capitalise on. Business use of LCVs is growing and GDP growth in all our markets has been strong throughout the year. We are seeing strong take up of our product offering as customers recognise the advantages of our unique offering to their business.

Our Territories

We undertake our key activities in three distinct geographic markets: UK, Spain and Ireland. We ensure our product offering is tailored to that particular market's needs and leverage our scale, knowledge and experience to drive business forward.

1.2% GDP growth in UK

2.9% GDP growth in Spain

3.9% GDP growth in Ireland

There are c.8 million LCVs in operation across all our markets with annual revenues in the sector of c.£15bn. Our comprehensive offering ensures that we have full access to this exciting market opportunity.

Our Key Markets

Flexible rental

Overview: Flexible rental is the historical core of Northgate and is an area where we remain a market leader with 31% of total market share. With no contractual or capital commitment, the market offers the most operational flexibility for our customers. Vehicles are usually supplied fully inclusive of maintenance and other service enhancements.

Opportunity: This is a growing market (6% pa) in which the Group is a market leader. Our competitors are typically smaller regional operations and we can leverage our competitive advantage through our scale and unique understanding of customer requirements. We aim to defend and grow our share of this market.

Minimum term

Overview: Minimum term rentals require a contractual commitment from customers to commit to rental for a minimum period of 12 months. This product offers customers similar benefits to vehicle ownership while limiting their exposure to residual value risk and initial cash outflow. We offer additional service enhancements which distinguishes our offering from our competitors.

Opportunity: Minimum term hire is a substantially larger market than flexible rental and estimated growth in the market is 8% pa. The Group has <0.5% of the market share; however, our unique product offering means we are well placed to capture the significant market opportunity. We are able to offer a range of minimum term commitments with levels of service typically associated with flexible rental, and we offer additional service enhancements which distinguishes our offer from our competitors.

We are also well positioned to take advantage of the structural shift from vehicle ownership to rental through our range of rental services which offer customers the opportunity to improve cash flow and remove residual value risk from their business.

Vehicle sales

Overview: Acquisition of used vehicles in the secondary market generates transactions of £5bn in value per year. End users are typically individual business owners.

Opportunity: We can access the end users directly through our national network of retail sale locations. This enables us to reduce the overall holding cost of our vehicles. Our scale and network enables us to offer customers the widest range of vehicles and service in the market.

SOURCE: based on research conducted by OC&C using data from MSI BVRLA, DFT, SIMI. Market defined as LCVs only.