Northgate in gear to drive forward success

WHEN Alan Noble set up his vehicle hire business, it quickly gained a reputation.

Unfortunately, it wasn’t a particularly good one.

His neighbours were not happy.

Mr Noble founded the company as a 29-year-old in 1981 from his home in Hurworth, near Darlington, with 40 vehicles.

Replacing the gentle hum of residential vehicles with an increased rumble of traffic drew certain angst.

The Middlesbrough-born businessman had to act and quickly found a depot to appease the situation.

The switch meant it continued to make an impression, though this one was much more positive.

Today, 33 years later, with more than 60 UK branches and a fleet of about 54,000 vehicles, the firm has spawned from Noble Self Drive into Northgate Vehicle Hire.

Its vans keep thousands of tradesmen on the road every year.

Customers use its minibuses and cars to travel the length and breadth of the country.

Spanish holidaymakers enjoy their vacations thanks to its car hire division.

Last week, bosses revealed they are continuing its expansion after rising demand saw underlying pre-tax profits rise 22 per cent to £60.3m.

The firm, which has headquarters in Allington Way, Darlington, wants to open more depots in the London area.

It also plans to set up a further 18 across the UK, including potential sites in the West Midlands and Manchester, and wants 90 sites by December 2016.

The proposals could create hundreds of jobs.

Mark Hunt, Northgate’s group financial controller, said the company was, pardoning the obvious pun, driving forward.

He said: “We are very pleased with where we are and with our results.

“This time last year we were talking about our plans to open sites in London, and we have started to do that.

“We will be opening more and will then move on to other areas in the country where we feel the market is underrepresented.

“We also talked about the improvement in the commercial department and that has been successful too, with vehicles on hire increasing by 4,500.

“That is good to see and we have also had a 37 per cent rise in dividend per share to 10p per share.

“It’s also been a pleasing year in Spain.

“That division grew by 2,600 hires in the year, and the holidaymaker side of things was good.

“From what we have seen so far, that side of things is continuing.”

From its birth in 1981, the company now employs about 450 workers in Darlington and 580 across the North-East as a whole.

Though it started at Mr Noble’s Hurworth home, it quickly began to expand.

Deals to buy Stockton’s Transmore Van Hire and Caledonian Self Drive, in Newcastle, followed its inception, with holding company Northgate Motor Holding set up in 1986 for the three locations.

As its vans clocked up the miles, Mr Noble was equally busy working on growing the business.

Capturing firms in Leeds and Middlesbrough took it further into the market, before Northgate was acquired by Goode Durrant, a construction and motor conglomerate.

The move triggered a major expansion as companies in Derby, Liverpool and Chesterfield joined the business.

Eventually, its 22 separate divisions were brought together under the Northgate brand in 2010.

Despite its growth, its focus on staying local never waned.

It now has depots in Darlington, which includes a workshop and van sales centre, Stockton, Wilton, near Redcar, North Shields and Blaydon, near Gateshead.

Its customer support centre, also based in Darlington, looks after administrative work, such as the service and maintenance of its fleet.

For a company with an increasingly strong presence in the UK, Spain and Ireland, where it has sites in Dublin, Limerick and Cork, it could have been forgiven for looking at leaving the North-East to maintain its expansion.

Bosses say the thought has never been considered.

Jonathan Pearce, head of marketing, said its decision to stay in the town was simple and is reflected by a long-standing client base.

He said: “We could have taken the customer centre anywhere, but the company chose to keep it in Darlington.

“The quality of staff is already here and we have been successful in Darlington.

“It allows us to have everything we need to give customers the same high levels of service in one place.

“That has helped us because we have been particularly successful this year with existing customers.

“They are staying with us longer and growing with us.”

Profile: Alan Noble

Mr Noble, a former Darlington Football Club chairman who counts former England striker Jimmy Greaves as a friend, left the company in 2010.

Bob Contreras took on the role of chief executive.

Mr Noble previously told The Northern Echo the company had succeeded by remaining local.

He said: “We had 40 vehicles at the start, but within 12 months had to find a depot because the neighbours weren't happy with all the coming and going traffic.

“Within a year, I’d built it up to 200 vehicles, and it continued to go from strength-to-strength.

“It has come a long way and I kept the head office in Darlington because that's where the business started.

“We moved the head office from London to Darlington - doing the reverse of what normally happens.”

After transforming his company into a market leader, Mr Noble offered advice to help young people into business.

He added: “You need a business plan and help with that plan from a good finance man.

“The biggest problem is not profit, it is cash flow.

"You can be temporarily loss-making but keep going as long as you have the cash flow.

“People should also see their new start-up as an apprenticeship.

“When you start up, be prepared to be on a barely sustainable income.

“I left a job with a car and a high salary and went to £35 a week and a Ford Escort van, but I could see it for the long-term benefits.

“A lot of people buy nice cars and suits straight away, but success doesn't come overnight.

“People should also take pride in having the guts to do it; there are lots of very qualified people who don’t.”

Timeline: Northgate Vehicle Hire

1981 - Alan Noble sets up Noble Self Drive Limited, in Darlington. Three years later, it buys Stockton’s Transmore Van Hire, and Caledonian Self Drive, in Newcastle.

1986 - Northgate Motor Holdings Ltd is established as a holding company for the three hire locations.

1987 - Buys Anchor Self Drive, in Leeds, and Autorentals (Cleveland), in Middlesbrough. Northgate is acquired by Goode Durrant, a construction and motor conglomerate.

1990 - Start of major expansion, buying firms including Derby’s East Midlands Vehicle Hire, Liverpool’s Maincrest Hire and Acorn Self Drive, in Chesterfield.

1998 - Goode Durrant announces relocation from London to the North-East after decision to change its name to Northgate plc.

1999 - Northgate Vehicle Hire Ireland opens in Dublin.

2000 - Name changes to Northgate Vehicle Hire Ltd.

2002 - Expands into Europe, buying 40 per cent of the equity of Fualsa, one of Spain’s largest van rental companies.

2004 - Group’s UK fleet reaches 50,000.

2006 - Acquires Spain’s Record Rent a Car.

2010 - Mr Noble leaves the business. Bob Contreras becomes chief executive.

October 2012 – Delivers 150 jobs boost to Darlington in a new customer support centre after moving into the former home of Darlington Building Society, in Lingfield Way. Staff book MOTs and handle customer calls.

June 2013 - Reveals plans to create hundreds of jobs in a major UK expansion by targeting London and the South-East with 20 depots in the next three years.

June 2014 – Records underlying pre-tax profits of £60.3m and reiterates aims to open new sites in the North-West and the Midlands. Has nearly 54,000 vehicles in its UK fleet and 37,800 in its Spanish division.