A VEHICLE rental firm keeping thousands of tradesmen on the road is creating jobs to propel its growth.

Northgate Vehicle Hire, founded in Darlington, told The Northern Echo it will open more branches across the UK to maintain its expansion.

The company is targeting the North-West and West Midlands after a successful London venture yielded increased business.

Bosses said it aims to extend its branch network from 73 to 90 by the end of 2016, after previously setting up depots in Watford, Enfield and Southall, in London and Dartford, in Kent.

The expansion plans, which the firm said will deliver scores of new posts, were revealed in its financial results for the half-year to October 31.

The company saw a near 50 per cent increase in underlying pre-tax profits to £47.8m compared to the same period last year, with operating profit higher at £54.1m and revenue rising from £289m to £305m.

It added UK vehicle hire grew by 1,800 since April 30.

Mark Hunt, group financial controller, said the firm, which has depots in Darlington, Stockton, Wilton, near Redcar, North Shields and Blaydon, near Gateshead, has benefited from its branch growth and second-hand sales from its Van Monster division.

He told The Northern Echo: “This is a really good set of results and the UK continues to be all about our growth and new sites.

“We have opened more branches and that is what is underpinning the vehicle on hire growth.

“Our London area programme has been a success and we are now looking at the other regions, such as the North-West and West Midlands, and places like Blackburn, Manchester and Oldbury.

“The plan is that the expansion will continue and hope to have around 90 sites by the end of 2016.

“We’ve also done well from the sales side of things, with success across our UK channels of auctions, trade sales and retail through Van Monster.

“At the end of their rental life, we take the vehicles and sell them.

“As we really focus on the maintenance, and because the second hand market has been strong over the last year or two, we are seeing high levels of profits coming through from that side of the business.”

Mr Hunt also highlighted Northgate’s Spanish division, which saw vehicles on hire grow by 1,300 since April 30.

The company benefits from hire deals as holidaymakers take advantage of its vehicles to explore the country.

However, Mr Hunt said it had also been buoyed by a TV advertising campaign targeting smaller businesses during Spanish football matches.

He added: “There is seasonality in the Spanish figures and the country’s economy is showing some signs of improvement.

“But we have also been helped by our decision to focus on the small and medium-sized companies, which is where we are seeing quite a bit of success.

“We are highlighting our flexibility and have the advertising campaign with a magician who makes vehicles appear and disappear; they are there when people need them.

“We are maintaining and running the vehicles, which allows people to then use them when they want.”

Starting life as Noble Self Drive in 1981, when Alan Noble set up business from his Darlington home, Northgate embarked on a major expansion, taking over a number of rival businesses.

Its 22 separate divisions were eventually brought together under the Northgate brand in 2010.