Fleet News

Fleet outsourcing boosts Cowie profits

AN increasing number of companies opting to outsource their fleets has contributed to Cowie Interleasing announcing record pre-tax profits for the six months to June 30.

The Cowie Group, which also includes dealerships and bus operations, has reported another record half-year with pre-tax profits up 19% to £32.2 million from £27.1 million in the first six months of 1995 on turnover virtually unchanged at £529 million. The finance division, a large part of which is Cowie Interleasing, contributed £17.6 million pre-tax, an 8.5% rise on last year's equivalent figure of £16.2 million with turnover up to £116.6 million (£112.5 million).

The company's contract hire and fleet management fleet has expanded to 68,500 vehicles and chief executive Gordon Hodgson said: 'In 1996, more companies have decided to outsource the management of their vehicle fleets completely to Cowie and significant new business is being won, resulting in a satisfying level or organic growth in the contract hire fleet.'

The company said strong demand and healthy margins for ex-company cars continued. 'Over 1,000 vehicles a month are coming through the centre, not only our vehicles but other companies for a fee. Their refurbishment adds to their value and we have traders queuing at the doors each day to buy them,' a spokesman said.

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