Avis hurt but insurance helps

Car hire company Avis Europe announced strong performance in the insurance sector as other areas fell more sharply, causing the company to make a loss.

Highlights (2007 in brackets)

• Revenue on continuing operations ahead by 1.3% at constant currency and 1.0% lower at €1,313.8m on a reported basis.
• Underlying operating profit up 5.8% at €112.7m and underlying operating margin ahead by 0.6% points to 8.6%.
• Underlying profit before tax on continuing operations of €38.0m (€37.6m).
• Currency translation gains offset by trading exchange rate impacts.
• Net exceptional pre-tax charge of €27.5m (€22.8m).
• Total operating profit on continuing operations 4.1% lower at €97.1m.
• Profit before tax on continuing operations of €3.0m (€33.2m).
• Loss per share on continuing operations of 1.2 euro cents (earnings per share of 1.6 euro cents).
• Underlying earnings per share on continuing operations of 2.4 euro cents (earnings per share of 2.9 euro cents).
• Loss after taxation of €9.9 million (profit of €2.9 million).

Pascal Bazin, chief executive, said: “Our excellent and well balanced customer portfolio enabled us to compensate lower revenues in the less resilient leisure segment with continued growth in the corporate and insurance/replacement segments.”

The company’s accounts added more detail on the insurance sector: “Overall rental revenue from this customer group was ahead strongly again, reflecting good performances in Italy, Germany and the UK. Rental revenue per day was below the prior year, partly driven by an increase in rental length.”