Cush for contract hire
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PHASED-in removal of -year capital allowances Drought in a rush of new tact hire business, one of tin's leading distribution s claimed this week.
idlands BRS says manuirers which arc used to Mg lorries on Own acit are now arriving at dens about what to do it their transport needs wing the tax changes put
• ard in the 1984 Budget. is is in line with the
views of other contractors who feel that potential customers are reaching decisions as a result of pressure from finance directors first applied last summer. A spate of new contracts can be expected in the next few months.
Of contracts won by BRS Midlands over the past few weeks, five medium-sized with-driver deals worth nearly £2 million revenue a year are typical.
The largest involved taking over the distribution of aluminium products from Banbury-based British Alcan Extrusions and Akan Building Extrusions, which ran contract hired lorries on own account.
The deal includes the takeover and contract back of 52 trailers, and the replacement of a fleet of 20 lorries with just 12 new vehicles. Night trunking is to be introduced, using out-based lorries at BRS depots in Manchester (two), Glasgow and Bristol.
The Alcan deal includes fleet management, involving the use of a BRS manager to run the operation. So do contracts with steel foundry Lloyds (Burton), which includes 11 lorries and Swan Housewares of Lye, which has seven trucks in the contract.
Out-basing of vehicles features in the Alcan contract and also in an agreement with Foseco (FS), a chemical products company in Tamworth. Six lorries are based there and two in Leeds. Paul Malts has contracted five lorries based at Newark, with one sited at BRS's Watford depot. The