Troubleshooter in van hire firm’s hot seat
THE UK’S biggest van hire firm has appointed a well known business troubleshooter, previously shipped in to sort out the now washed-up Sea Containers empire and its rail franchise GNER, as chairman.
Darlington-based Northgate, which has had a rough ride over the past 12 months as business fell away at a spectacular rate in the UK and Spain, said Bob MacKenzie would take up his post as non executive chairman with immediate effect.
The markets barely reacted to the news on Friday but for Northgate, which is accelerating slowly away from recession, it could help to steady nerves that were seriously frayed after the company posted a £195.6m full year loss in April.
The disastrous performance, which was blamed on recessionary forces rather than the Northgate model, forced it into a £108m rights issue and to renegotiate £891m of debt.
Those investors who led a strong take up of the offer were rewarded in December with news that Northgate had broken back into the black, recording pre-tax profits of £22m in the six months to October 31.
Radical action included slimming down the fleet by more than 7,000 vehicles, which helped boost utilisation rates to 91.4%.
Mr MacKenzie, who was previously chairman of PHS Group as well as holding senior executive board appointments with National Parking Corporation, BET, Storehouse and Hanson, has also acted as a senior advisor to private equity funds, Texas Pacific Group and Charterhouse.
The 57-year-old is currently chairman of Dometic Holdings AB, a Swedish based manufacturing firm.
Steve Smith, chief executive of Northgate, said Mr MacKenzie’s extensive experience would prove invaluable in continuing to drive the business forward.
He follows Philip Rogerson, who announced he was to retire as chairman in October.
In September Phil Moorhouse, MD of UK Rentals at Northgate who helped build the fleet from 5,000 to 120,000 over 18 years and extend its operation into Continental Europe and Ireland, also announced he was to retire.
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