AN 18% organic increase in ACL's contract hire fleet was not enough to stop its parent company's pre-tax profits slipping 15%. Chartered Trust reported pre-tax profits of £61 million for last year, and attributed the 15% year-on-year fall to an investment of more than £7 million in Year 2000 projects.

The finance house declined to publish separate figures for ACL, but said the contract hire company had achieved a 'substantial improvement' in operating income. Its acquisition of Motorent and Autolease last year more than doubled the group's fleet size to 52,000 vehicles.

Simon Richmond, ACL's director and general manager, said: 'The contract hire business has seen both organic and acquisitive growth in 1998 and our focus for 1999 will be to consolidate this growth. Sharing of best practice across the contract hire group will ensure our future strength in a polarising marketplace.'