BRITAIN'S biggest vehicle hire firm, Northgate, has announced it intends to expand its network after revealing healthy preliminary results.

Chairman Michael Waring says the company will consider increasing the size of the business following the success of the past few months in the face of intense competition.

He said: 'Our position as the leading van rental company in the UK leaves us well placed to take advantage of opportunities that will arise to expand our fleet and network either via acquisition or the establishment of new greenfield locations.'

For the year ended April 30, turnover was up 5.3% to £355.6 million, while operating profit was up 18.1% to £60.1 million and pre-tax profit jumped to £44.7 million, an increase of 22.1%.

During the year, it also reinforced its lead as the biggest rental company as its fleet size grew to 47,000 vehicles, up 2,000 on 2003.

Waring added: 'Although the UK remains our core market, it is particularly pleasing that our first venture into continental Europe, the acquisition of Fualsa in Spain, has proved to be such a success.

'Fualsa is now making a significant contribution to group profits and, since the year end, we have completed the acquisition of the remaining 60% of the equity in the business.

'We are confident that the group's goal to achieve annual double-digit earnings growth throughout the period of our plan remains achievable.'

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