Wednesday, 7 October 2009
Despite improvements in the housing market boosting their incomes van hire companies are still facing an uncertain future. The van hire market relies heavily upon the housing market afterall most people don't need to rent a van unless they are moving their belongings to a new property. It has been reported that the slowly recovering levels of property sales have bought a welcome influx of van hire customers but that doesn't seem to be enough to save some companies.
Van hire firm Northgate have had a difficult month which has seen their shares rise and fall in a dramatic fashion. First they released the news that their debt was much less than had been previously reported. The company claimed that they had managed to decrease its debt partly by selling off older parts of its fleet. This announcement saw Northgate's shares rise to higher than they had been for quite some time. the next day Northgate were forced to announce that they had 'miscalculated' the figures and they had actually reduced their debt by £173m rather than £205m since April. This had a predictable affect on their shares.