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Rental firm Northgate Vehicle Hire has announced plans to add up to 20 new depots to its network, the majority of which will be in and around London. It will open two new sites in Luton and Brent Cross in the final quarter of 2013 and add between six and eight further branches within the next year.
Each site will have around 500 vehicles on its books, but Northgate said they would take "three years to reach maturity" and were expected to "break even in their first year" but with bigger profits expected later on.
The company, which specialises in commercial vehicle rentals, plans to add even more as yet undisclosed depots to its portfolio over the next four years.
CEO Bob Contreras said: "Over the last six months we've launched new depots in Luton, Brent Cross and Huddersfield, and all to great effect.
"Our focus will now shift to the London market due to the demand for flexible hire in the capital. Each new site will have an initial set up cost of £0.2m, covering property, personnel and marketing costs.
"If the new sites perform in line with our expectations, they should break even in year one and by year three have a ROCE [return on capital employed] in excess of 16%."
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