Fleet News

Cuts ahead at Alexanders

ALEXANDERS Holdings' sale of its contract hire division brought in half-year profits of £11.7 million but cuts may still be needed as difficult trading conditions and poor residual values hit hard. The sale of Alexanders Contract Rentals to Axus UK threw a lifeline to the company's accounts with a cash injection of £13.3 million.

It left pre-tax profits for the six months to September 30, 1998 up to £11.7 million compared to a loss of £987,000 for the same period in 1997. But the underlying figures tell a different story, with continuing operations recording a £1.39 million loss compared to a loss of £778,000 for the same period in 1997.

Tough trading conditions mainly caused by the poor performance of residual were blamed. Chairman Aleksandra Clayton said two sites were being prepared for sale at short notice - Northampton, which is not used as a dealership but is partly leased, and Edinburgh, which has been leased for six months to dealership Peoples Edinburgh.

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