Northgate, the UK and Spain's largest van-rental group, warned full-year profits would be lower than initial market forecasts as worsening economic conditions take their toll on used-car sales, a critical element of the company's business.
Steve Smith, chief executive, yesterday said the company would focus on running the business for cash, and all expansion plans had been put on hold. Last year, Northgate said it planned to expand in Europe beyond Spain, where it is the dominat van-rental company.
