Fleet News

Avis: demand up, profit down

DEMAND for corporate rental at Avis Europe increased by 6% in the past six months, with Greece and Germany among the star performers, but the increase failed to stem falling profits. Pre-tax profits at the European rental giant fell from E15.3 million to E10.6 million, on turnover up 3% to E548 million.p> Overall, premium and corporate revenue accounted for 44% of business, with leisure accounting for 32% and replacement vehicle business bringing in 24%.

The UK brought in 14% of revenues, with France taking 20%, Germany 15%, Italy 14% and Spain 16%.

The firm said it would focus on a number of initiatives, including margin improvement as the foundation for longer-term growth. However, pressure on prices would continue to limit profits. Chairman Alun Cathcart said: 'Overall, our early view for 2005 is that market conditions will remain difficult and therefore we expect our underlying trading performance will be broadly similar to this year.'

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