Car rental group Avis Europe has dashed hopes for a revival after seeing little respite from the tough conditions that led profits 64% lower today.
The group, which owns the Budget and Avis brands in Europe, said there had been some improvement in demand, particularly in the corporate and car replacement sectors, but that it continued to face pricing pressures.
The update – contained within the company’s results for the six-month period to June 30 – sent Avis Europe shares 14% lower to a new low.
Chairman Alun Cathcart said: “Our early view for 2005 is that market conditions will remain difficult and therefore we expect our underlying trading performance will be broadly similar to this year.”
Revenues in the half-year period were 3.9% higher at €548m (£372.7m) but profits at the bottom-line fell to €5.4m (£3.7m) from €15.3m (£10.4m) a year earlier.