Northgate (NTG) 465p

Gain to date: 13.1%

Original entry point: Buy at 411p, 24 November 2016

A management shake-up at Northgate (NTG) has been well received by the market. Investors are clearly hoping new leadership will reinvigorate the van hire business.

Chief executive Bob Contreras is set to step down in January 2017 after more than six years in charge. His replacement is the former UK managing director of car rental firm Avis Europe, Kevin Bradshaw.

We recently flagged Northgate as a potential takeover target, citing the involvement of activist investor Crystal Amber on the shareholder register as someone which could push for a sale of the business.

The change of CEO was announced alongside half year results on 6 December. Underlying pre-tax profit was down 12% year-on-year at £40.4m and net debt was higher at £355m. Spain is doing well but the UK is struggling.

A 12% increase in the first half dividend to 5.7p per share would suggest the company is confident it can improve earnings.

It needs to have a strong second half period to hit earnings forecasts. We remain buyers.