Wednesday March 26, 02:19 PM
Autoclenz shares jump despite profits fall
LONDON (ShareCast) - Shares in car valeter Autoclenz moved sharply higher even as 2007 pre-tax profits slipped despite a rise in revenues and the company warned of the continuing impact of the credit crunch. Pre-tax profits fell to £1.5m
from £2m in 2006, while sales climbed to £27m from £26.4m."Against the background of a tougher economic and trading environment, we have successfully focused on a range of operational efficiencies, on-going tight cost controls and important, new business development opportunities which, although at an early stage, are already enabling us to expand our presence within the car rental market, thereby reducing our dependence on the automotive sector," chairman John Bell said. He said that the company's new AC Movements business, which involves collection and delivery of rental cars, would help to offset a reduction in car sales. "The high profile of 'credit crunch' will undoubtedly have an impact on car sales," he said. "However, our investment in AC Movements will help to change the balance of our business and this will hopefully reduce the impact of any further downturn in sales within our dealership customers." Autoclenz said it was raising its dividend to 5.5p from 4.5p in 2006.
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