SCOTTISH motor distributor Alexanders Holdings turned in an increased loss of #2.3m during its latest 18-month accounting period, which was lengthened to accommodate a change to the company's financial year.
The loss for the 18 months to March 31 compares to a #20,000 profit for the year to September 30, 1996. The most recent figures included exceptional costs of #118,000 for the closure of the Northampton Ford dealership in April 1997 and #217,000 from the termination of the Ford franchise in Edinburgh last summer.
The Edinburgh-based group, which in February announced a shift towards enhancing shareholder value, also unveiled plans to dispose of its ACR vehicle contract hire subsidiary. Pending approval from Alexanders shareholders, this will be sold to Axus UK for a cash consideration of #14.4m.
ACR, which has headquarters in Northampton and a branch operation in Edinburgh, specialises in the contract hire of vehicles, mainly to small and medium-sized businesses. It has around 40 employees and a fleet of some 4800, and generated pre-tax profits of #2.4m during the 18 months to March 31.
The acquisition by Axus, part of the Ford Financial Services Group, continues the operation's expansion in Europe. It follows other recent purchases in Denmark, Finland and France.
Alexanders expects to make a capital gain of some #11m on the deal, and will use some of that to reduce the ''majority'' of its borrowings of #6.81m. The remainder will be used for operational improvements at its motor dealerships, which include sites at Kirkintilloch, Cumbernauld and Greenock.
Turnover during the 18-month period reached #148.6m. Shares closed 0.75p off yesterday at 17.5p. There will be no final dividend.
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