Fleet News

Arriva reports record profits after shake-up

VEHICLE, bus and rail company Arriva has reported record operating profits from its daily rental business following re-organisation. With improved fleet utilisation and better market conditions, Arriva Daily Rental reported record operating profits of £9.3 million on turnover of £80.6 million for the year to December 31, 2000, up from £7.7 million on turnover of £78.4 million in 1999.

The company runs 9,500 cars and light commercials from 50 outlets in the UK. And Arriva Motor Retailing, which has 38 sites representing 14 manufacturers, recorded an operating profit of £7 million (1999: £9.6 million) on turnover of £607.4 million (1999: £598.7 million). The company's motor operations division recorded an operating profit of £16.3 million (1999: £17.3 million) on turnover of £688 million (1999: £677.1 million).

The lower financial performance reflected, said the company, a loss of contribution from Arriva Automotive Solutions, the car leasing division which was sold in July 1999 and the well publicised difficulties faced by car retailers in 1999 and last year. For the year under review the group reported pre-tax profits of £72.1 million — down from £198.7 million in 1999 largely due to the £110.8 million exceptional profit realised from the sale of Arriva Automotive Solutions. Turnover rose from £1.36 billion in 1999 to £1.74 billion last year.

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