COMMERCIAL van hire group Northgate said it expects "satisfactory" results this year.

In a pre-close trading statement yesterday, the Darlington plc said it had been affected by weakness in the UK market, partly due to problems in the construction, retail and distribution sectors.

The size of its UK fleet remained static, but the useage of vehicles was maintained at 90 per cent.

Fleet growth returned to expected levels in September and last month.

Competitive pressures had led to a small decrease in UK hire rates in recent months, but Northgate said it was better placed to see an improvement in profits for the rest of the year.

The company's Spanish businesses, Fualsa and Record, continued to perform well and in line with expectations.

The statement said: "The board looks forward to a satisfactory outcome for the group for the year as a whole."

Last month, Northgate turned down an approach valuing the company at nearly £775m, believed to be from financier Guy Hands, who runs equity investment group Terra Firma.