Fleet News

Arriva sells finance businesses

MOTOR dealership, car rental, bus and rail group Arriva is selling its two motor finance businesses - Broadwood Finance and Arriva Finance Lease. The decision to exit from motor finance operations came as the company announced half-year results for the six months to June 30. Turnover for the period reached £875.3 million with pre-tax profits of £35.5 million down from £51.6 million for the same period last year, largely due to the sale of Arriva Automotive Solutions - renamed Interleasing in July last year.

The motor finance businesses have operating assets of about £50 million and in the six-month period contributed an operating profit of £2.6 million (1999: £3 million).

Arriva says its dealerships will continue to offer hire purchase and lease products to customers financed by third parties. Meanwhile, the company operates a dealer network from 38 locations and runs a 9,000-strong car and LCV daily rental operation.

Arriva Daily Rental achieved an operating profit of £4.2 million in the first six months of this year compared with £3.7 million in the same period last year. Operational changes have resulted in improved fleet utilisation with turnover up to £37.9 million.

Motor retailing achieved an operating profit of £5 million on a turnover of £347 million. The operating profit decrease reflected the sale of the leasing business and the disposal of a number of dealership locations.

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