The company said it was “in discussions” with other finance houses to sell Broadwood Finance and Arriva Finance Lease, which have loan books worth around £50m. Last year the company sold Arriva Automotive Solutions, now rebadged Interleasing, to GMAC.
The news renewed speculation the group will soon sell £686m turnover Arriva Motor Retailing, ranked No8 in the AM100. The dealership division is viewed as a non-core business for Arriva which is now focussed on public transport under chief executive, Bob Davies.
Mr Davies said the company was “more positive about the medium term prospects for our motor operations than for some time”. But the division is suffering from the loss of business generated by the contract hire arm.
Profit for six months was down to £5m (1999: £6.6m) on turnover of £347m.
Arriva dealerships will continue to offer hire purchase and leasing products but these will be financed by third parties.
Dealer withdrawal from the contract hire market has continued and Bristol Street sold Jessups Vehicle Contracts division to Interleasing.