Article: Arriva motors on buses deal

ARRIVA, THE former Cowie Group, pleased the City yesterday with the twin news that its expanding bus division offset a poor showing in vehicle contract hire in the half-year to June, and that it has received several approaches to buy the ailing finance arm.

Shares in Arriva rose 11p to 387.5p as chairman Sir James McKinnon disclosed that half-year profits had been pegged at pounds 47.6 million after a pounds 3.2 million improvement from buses. Earlier this year the group warned twice that profits would be hit by a setback in contract hire.

The exact fate of the contract hire business has yet to be decided, but it will be "separated" from the group by the year-end to enhance shareholder ...

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