Lex Service shows big boost in profits
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• Commercial vehicle operator, hirer and dealer Lex Service announced it was moving fast out of financial hard times last week when it posted pre-tax profits for 1993 up 36% on the previous year.
A spokesman for Lex, the owner of Transfleet and 22 truck dealers, says: "We saw the change occurring in the middle of last year and we've seen improvement since then. We feel confident about the future."
Transfleet made record profits of £4.7m against 1992's result of £1.4m. The company has a fleet of 7,700 trucks on contract hire and rental and Lex's board expects that number to rise to 10,000 this year. A Lex spokesman says: "We'd like mainly to increase the fleet organically but we are also prepared to buy other businesses." Transfleet's staffing levels and site numbers have stayed constant but it has gained from lower interest rates and better prices for vehicles sold on from contract work.
Lex boosted its truck dealers by eight with the purchase of the Arlington group, and claims to have over 5% of the truck market: last year the dealers sold 1,900 new trucks. Overall, Lex increased pre-tax profits for 1993 to £38.5m from £28.3m.