LEX Vehicle Leasing has increased its funded fleet size by more than 26,000 vehicles – up to 125,000 units from 98,900 units a year ago.

The company, a joint venture between RAC plc and HBOS, has also increased its half-year pre-tax profits by 14% to £24.2 million from £21.2 million during the same period in 2003.

The company cites the winning of the £1 billion Ford Business Partner contract, the launch of consultancy service Lex Momentum, which helps companies improve their fleet efficiency, and expansion in its broker business as reasons for its record profits.

Lex Vehicle Leasing managing director Jon Walden said: 'We have had an exciting six months which have seen the successful integration of the Ford Business Partner fleet and further improvements in customer service and cost reduction through company-wide adoption of our Six Sigma business improvement programme.'

The company's light commercial fleet has grown to more than 30,000 vehicles, helped in part, Walden said, by the launch of three new initiatives specifically designed to help van fleets comply with proposed duty-of-care legislation.

These include a new servicing and maintenance service for van ancillary equipment, a 120-point van inspection service and a strategy of fitting safety wheel trims to all new vans.

The company also recently announced plans to move from its operations centre in Sale to bigger premises in Cheadle Hulme. Walden said: 'Our business is growing based on a strong customer service commitment and an innovative portfolio of products and services backed up by the best people in our industry. These results show that Lex is well positioned for future growth.'