The chief executive of Northgate is to step down after 23 years at the van hire company in a departure which has been delayed since last summer.
Steve Smith has left the nation's leading light commercial vehicle rental company with immediate effect. He has spent the last ten years as chief executive.
The company said Mr Smith had been due to leave last year but agreed to stay on until this summer to oversee the aftermath of the financial reconstruction of the company. In the event, with the arrival of corporate troubleshooter Bob Mackenzie as chairman, it was agreed Mr Smith would not return after the Easter weekend.
Under Mr Smith, Northgate became synonomous with White Van Man, the ubiquitous driver of delivery vehicles around the country, many of them on hire from Northgate. The fleet went from 2,500 vehicles to 120,000 over Mr Smith's two decades.
But the company's reliance on the building trade and small shops saw it crash heavily during the recession. Last year, it posted losses of £195 million and was forced into a £108 million rights issue as it grappled with an £890 million debt mountain.
Mr Mackenzie's last major role was sorting out the financial disaster at Sea Containers, whose best-known UK interests were the GNER rail company. He paid tribute to Mr Smith's two decades at Northgate, adding: "Steve has now agreed to bring forward his planned departure date in the light of the progress that has since been made by the group."
Paul Tallentire, the deputy chief executive, will manage the day to day operations of the group and lead what the company called "a fundamental reorganisation" of its UK business.
Northgate said its net debt is currently standing at £650 million and it remains cautious about the trading environment.
Article from Times Online
Looking to buy a Commercial Vehicle? Visit VansandTrucks.co.uk
0 comments:
Post a Comment