Weak car market hits Rutland

RUTLAND Trust, the corporate financier, contract hirer and loss adjuster, has reported a fall in pre- tax profits from pounds 3.9m to pounds 3.5m, writes Robert Cole.

Profits from contract hire and loss adjusting both fell in the six months to 30 June.

Rutland leases cars, mostly executive models for companies. Weakness in the prices obtained for ex-rental vehicles led to a slip in profits on the car business from pounds 1.2m to pounds 900,000.

The relatively mild and disaster-free winter also led to leaner profits in loss adjusting. Profits were down from pounds 2.4m to pounds 2m.

The contribution from arranging finance for companies rose from pounds 250,000 to pounds 650,000. However, Michael Langdon, chief executive, said: 'Several potential transactions have been delayed as a result of the recent economic and financial uncertainties.'

He added that Rutland had pounds 8m cash and was looking for expansion opportunities.

For the six-month period earnings per share dropped back to 0.84p from 0.88p. The interim dividend was held at 0.27p. The shares were unchanged at 10p.