Rental company Avis Europe has reduced its losses for the first half of 2007 and forecast growth, after strong demand over the summer.

Half year losses were cut to £1.3 million pre-tax, compared to £3 million last year.

Revenues were up 4.7% to £407 million, thanks to volume growth, cost cutting and new management techniques to align fleet capacity with demand.

The UK market performed poorly, thanks to the weather which saw a lower demand from tourists. But France, Spain and Germany enjoyed growth.