Fleet News

FCM boosts business for Evans Halshaw

A RECORD-breaking performance by Fleet Cost Management and the elimination of loss-making fleet deals by dealers helped Evans Halshaw to report an £11.1 million profit before tax and exceptional items for the year to December 31, 1996.

However, the profit on turnover of £870.7 million (1995: £834.7 million) was down from £13.5 million in 1995 and due to exceptionals which included £11.3 million to cover the implementation of dealer re-organisation announced last October and £8.8 million of goodwill, pre-tax losses of £9.32 million were recorded. The re-organisation saw a review of Evans Halshaw's dealership group which concluded that 19 under-performing outlets should be closed or sold with the cash raised invested in more profitable areas of the business, in particular the larger dealer marketing territories where opportunities exist to improve returns.

To date 11 dealerships have shut and a further four will close within the next three months with the remaining businesses continuing to trade until they are either sold or their franchise agreements expire. The group currently has 76 dealers and following the re-organisation, which includes some acquisitions, group chief executive Alan Smith said he expected to have about 73 outlets by the end of the year.

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