Darlington-headquartered vehicle hire business Northgate has made "good progress" but remains cautious about the year ahead.
For the year to 30 April 2016, the company reported revenues of £618m, compared with £614m during the previous 12 months. Underlying pre-tax profit fell from £84.9m to £82.9m.
Chairman Andrew Page said Northgate had made "good progress in a number of key areas".
The vehicle hire business' Spanish operations "performed well" although the UK operation was "more challenged".
Bob Contreras, chief executive of Northgate, added the new financial year had started with a lower level of vehicles on hire than expected.
However, he said that the company is expecting to continue to increase this number over the course of the year, subject to uncertainty arising from the UK's decision to leave the EU.
Northgate also made a number of senior appointments during the year. Claire Miles joined as a non-executive director, Paddy Gallagher was appointed group finance director and, since the year end, Bill Spencer has been named a non-executive director.
"We have confidence in the steps we have taken to strengthen our management team in the UK and, while it will take some time to translate into results, we have put in place a range of operational and commercial initiatives which will improve both the quality of the business and our financial performance over the medium term," said Contreras.
"Therefore we expect that the current financial year will be more heavily weighted towards strength in the second half."