PROFITS at Fleetlease plunged into the red last year as the firm wrote off millions of pounds from the value of its fleet. Masayoshi Hanabusa, chairman of parent company Hitachi Credit, revealed that Fleetlease fell to pre-tax losses of £2.1 million in the year to March 31, 2001, compared to profits of £3.3 million for 1999/2000.

The turnaround was caused after the firm made an exceptional charge of £5 million to reduce the value of its fleet, following the collapse in residual values over the past two years. However, business is improving, with the owned fleet up by 6.5% to 14,800 while managed vehicles increased by 55% to 6,800.

Hanabusa said: 'I believe Fleetlease is in a better position to move forward with confidence, notwithstanding the difficult market conditions the industry has been facing.'