VEHICLE rental business Northgate plc, is going from strength-to-strength, recording a 13 per cent rise in pre-tax profits.

The Darlington-based commercial vehicle hire business saw its pre-tax figures rise to £13.9m in the six months to October 31, compared to £12.2m in the same period of 1999.

Turnover at the group soared 25 per cent to £153.5m, a rise of £30m on the 1999 figure.

In the last six months it opened new vehicle hire companies in Coventry, Stoke, Exeter, Dublin, Norwich and Gloucester, taking the total branch network to 48.

The group has a five year plan to increase that network to 100 outlets, operating 55,000 vehicles by 2003.

The vehicle fleet expanded by 15 per cent to 34,750 vehicles, compared to 30,100 previously.

Chairman of the group, Michael Waring, said: "The continuing move towards outsourcing and the development of the home shopping trade confirms our view that the potential for growth in the light commercial vehicle rental market is significant.

"Properties currently under negotiation should allow us to achieve out target of 12 to 15 new locations in the current financial year.

"Our tight control of the fleet continued with utilisation averaging 90 per cent across the whole operation, including all new depots and branch openings."

Mr Noble added that the company had made good progress in the improvement of hire rates.

Looking to the year ahead, Mr Noble said: "We look forward to the ongoing expansion of our business and remain confident in it's long-term prospects."

Mr Noble established the business as Noble Self Drive in 1981, offering the rental of commercial vehicles to industry and commerce, from his Hurworth home.

In 1987 the business was sold to Goode Durrant. Now the former industrial conglomerate is Northgate plc, having adopted the name of its former acquisition, and is almost wholly concentrated on the transport business.

Northgate has built its success on its Norflex system of vehicle hire, which allows customers to hire a vehicle for as long or as little as they like with no penalties.

l Last year Alan Noble was nominated for the Northern Echo sponsored Lifetime of Achievement Award at the Tees Valley Business Show, alongside Steve Gibson, chairman of Middlesbrough Football Club, and eventual winner of the award, Les Bell, of Teesside Dairies.