Our strategy is to use our competitive advantage to capitalise on the clear growth opportunities we have identified in all our markets.

Strategic opportunities

1 Flexible —
defend and grow share

Description

  • As a core market for Northgate, it is important that we defend our position and grow our market share

Why this is important

  • Flexible rental is the historical core of Northgate
  • Our network and people are enabled to capture growth in this market and win market share

How this will be achieved

  • Leading service proposition
  • Capitalising on structural market shift towards rental market
  • Agile pricing

2 Minimum term hire —
gain share

Description

  • Our share of the minimum term hire market is low but there is a significant opportunity to grow in this space as it is a naturally adjacent market to our core business

Why this is important

  • We can serve this market with limited variations in our operating model
  • There are significant opportunities to cross sell within our existing customer base

How this will be achieved

  • Unique product offering
  • Providing greater flexibility than our competitors

3 Conversion of
'Owned' to Term Hire

Description

  • A large proportion of vehicle purchases are financed at the point of sale making minimum term hire an attractive alternative for customers

Why this is important

  • Whole-life costs to customer can be lower than ownership
  • Cultural change means that customers no longer feel the need to own vehicles outright

How this will be achieved

  • Our range of flexibility of rental terms and vehicle offering can help customers make the switch to minimum term hire by offering certainty of cash flows and removing residual value risk

4 Consolidate the Fragmented UK LCV trading market

Description

  • The used LCV market in the UK is highly fragmented with a large number of regional competitors

Why this is important

  • Northgate has an opportunity to leverage scale through its national Van Monster network
  • Our access to a range of disposal channels allows us to maximise cash returns on sale of vehicles and ensure that we can invest in rental fleet

How this will be achieved

  • Increase in proportion of disposals through retail channels

All supported and mobilised by our strategic pillars

Through leadership

Our strong leadership teams in each business will ensure we can achieve our strategic opportunities. Our leadership drives cultural change and will therefore help us to achieve growth.

Through culture

Culture is an integral part of our business and enables our people to align behind our growth strategy.

Through systems

Our growth will be supported through our business infrastructure. In particular, our processes and systems are being updated to drive our business and our service offering.

Through scale

Northgate has a vast service offering and, combined with a large geographical presence, this ensures we are well placed to achieve growth. We can leverage our scale to achieve our growth strategy.