ONE of the North-East's newest plc's has announced a massive jump in its annual profits.

Vehicle rental firm Northgate plc has seen its operation go from strength to strength since relocating to Darlington from the South-East last year.

Pre-tax profits have jumped 46 per cent from £16.6m to £24.3m with the company increasing its fleet size by 22 per cent to 32,500 vehicles.

Northgate's move North is believed to be the first time a public limited company has shifted its head office from the South to the North-East.

The change was part of a five-year expansion strategy for the company to double the size of the business.

Chairman Michael Waring said: "Last year we embarked on a five-year strategy for growth in which our stated aim was to double the size of the business.

"The organisational structure that has been put in place to ensure the sound management of this strategy is proving effective and will allow us to continue on course to achieve this target.

"Since January this year we have seen an improvement in underlying hire rates with demand for our hire product remaining strong.

"Prospects for future development of our business remain very encouraging."

The group's annual vehicle investment budget of more than £200m will now go through Darlington, with the professional services required by a plc increasingly based in the region.

Northgate began as Noble Self Drive, which was set up by Alan Noble in 1981, and now the company employs more than 1,000 people, including around 80 in Darlington.