MH shuts contract-hire sector
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• Staffordshire-based Malcolm Harrison is closing down its contract hire business, which operated about 70 vehicles.
The hire fleet was split between spot hire and contract hire, operating from Harrison's Barlaston site. Spot hire has gone "very quiet", says general manager Don Mitchell, although long-term rental is still profitable.
But overall there was insufficient return on investment, says Mitchell, and the sector is not doing well in the recession. "We have to react to the situation," he says. "Big isn't necessarily beautiful."
The company plans to dispose of the trailers and artics, all F-reg or newer, at auction next month. The four people formerly employed on the hire side will be redeployed.
Malcolm Harrison, which also deals in new and used CVs, closed two retail sites be
fore Christmas, at Crick and Tebay, leaving only the Barlaston site for all its business.
The company's end-year results are due next month. 0 Cowie Group, whose interests include Cowie Interleasing, saw pre-tax profits drop by nearly £5m in 1990, to £11.3m. The Interleasing division, which is shutting its spot rental business, made a 27.5m profit, down from 28.9m in 1989.