Prestige car provider skids to a 62% fall in profits

BRISTOL & London, which provides replacement prestige cars when owners suffer accidents through no fault of their own, yesterday reported a 62 per cent plunge in profits.

Profits before tax for the 12 months to 31 January fell to £510,000 from £1.34 million a year earlier on sales down to £8.63m from £8.71m.

Higher costs were blamed on higher charges in relation to fleet depreciation and referral commissions payable.

In addition, Bristol & London incurred substantial costs from June onwards, stocking up for anticipated new business following a deal with a major motor insurance firm entered into last August.

Business referrals started in late autumn with the level of introductions initially below those anticipated, although things are now in line with predictions.

Chairman Bob Woods said: "The difficult trading conditions highlighted within my September interim report continued through much of the second half of the year.

"However, we are encouraged by the initial success of the fleet management opportunities, which we believe will provide the opportunity of business initiatives away from our more traditional sources."