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Accident Exchange rental activity rises

Accident Exchange Group has said it is concentrating on reducing its fleet ownership costs and improving the volume and profitability of its existing accounts in its interim statement.

The company’s third-quarter rental day activity rose by 11.9% compared with the second quarter.

Rental fleet utilisation pushed up from 52% to 63% between November 1, 2007 and March 14, 2008.

Approximately 94% of Accident Exchange’s annual revenues come from credit hire and accident management solution referrals from its contractual relationships with dealers and other partners.

Accident Exchange said commission rates were stable but is seeing increased pressure from competitors.

In November last year, Accident Exchange developed a business-to-business online vehicle remarketing programme to improve the flexibility around the disposal of its rental fleet. The website now has 638 dealers registered to bid on the site, which has resulted in 405 vehicles being sold at a total value of £7.3m in the past three months.

Accident Exchange will issue its pre close trading update for the year ending April 30 in early May.

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