VAN hire giant Northgate says it is weathering what it calls "the challenges of the economy" as it reported stable trading at home and abroad.

The County Durham company, which has created around 200 jobs in the region as part of the reorganisation of its business into one brand, operates across the UK and Spain.

It said van utilisation averaged 89% in the UK and 90% in Spain between the start of May and September 19, and it has reduced the size of its fleet.

The UK fleet is 2,000 vans smaller and now stands at 50,900 vehicles, while in Spain, the number was reduced by 700 to 37,700.

Northgate said: “We continue to trade in line with our expectations. Net debt and gearing continue to fall.

“We remain focused on asset management, cash generation and cost control whilst maximising profitable growth where the appropriate return exists.”

Northgate has been undergoing a shake-up which resulted in an almost doubling of its annual profits to £46m from £26.5m a year ago, despite revenues dipping by 1.2% fall to £706.7m.

Darlington has profited from the restructuring, with the opening of a second office.