PARAGON Car Finance is to merge with Paragon Vehicle Contracts as part of a complete restructuring which will see it re-launched at the end of next month The companies, which are separate operations, are to merge on June 21 with Pawan Pandya becoming managing director. Pandya is currently managing director of Paragon Car Finance, while Richard Koster, former marketing director of Lex Vehicle Leasing, is leaving his role as managing director of Paragon Vehicle Contracts to become marketing director for parent company Paragon Group.

Pandya says there could soon be a very different approach to the way the 3,000-strong contract hire fleet is run. 'At this stage, it is not possible to give any details of what will be happening after the launch of the new company. It makes sense to integrate the finance and contract hire companies into one operation.'

Meanwhile, parent company Paragon Group has announced its interim results for the six months to March 31 with pre-tax profits for the half-year up 32% to £14.7million (1998: £11.1million). Turn-over also increased on the same period last year to £34million (1998: £22.8million).