FLEET confidence is returning to MG Rover as it announces its biggest deal since the company was formed last year after the buyout from BMW.

The company will be the sole supplier to the John Menzies Group in a contract worth £11 million at showroom prices. Arnold Clark Finance will supply up to 1,000 cars over three years to John Menzies and associated companies.

Although John Menzies had used Rover cars for 17 years, MG Rover views the deal as new business and had entered a tender process before emerging as the front runner.

Ian Kelly, John Menzies Group transport manager, said: 'We're delighted with the outcome of the tender process which has further reaffirmed our confidence in MG Rover and its products.'

Angus Gray, MG Rover fleet sales director, said: 'The John Menzies fleet is one of our largest solus deals and although we have supplied cars to it for the last 17 years, in today's competitive environment we viewed this opportunity very much as new business.'

The deal follows a major contract signed with Compass Group in April, and a solus deal with furniture giant Courts.