Preliminary results for year ended 31 December 2005

Avis Europe plc, the leading car rental company in Europe, Africa, the Middle East and Asia, announces preliminary results for the year ended 31 December 2005 and provides an update on the progress of its recovery strategy.

Operating Highlights

• Results ahead of expectations - difficult pricing environment offset by improved volume and good utilisation, with utilisation now over 70%
• Good summer performance, particularly in Leisure
• Recovery strategy on track


• Phase I benefits beginning to flow through
• Phase II implementation progressing with initial focus on overhead reduction
• Strengthened capital base with successful completion of the €166 million rights issue

• Revenue up 1.9% to €1,276 million
• Avis billed days up 2.8%, revenue per day 1.5% lower
• Underlying* profit before tax €37.8 million (2004: €52.1 million)
• Net exceptional charge of €13.2 million – primarily re-structuring costs and rights issue expenses. Certain re-measurement items and economic hedges net gain of €5.2 million
• Total profit before tax €29.8 million (2004: loss before tax €20.0 million)
• Underlying* earnings per share 3.4 euro cents (2004: 5.6 euro cents)
• Total earnings per share 2.3 euro cents (2004: loss per share 2.4 euro cents)
• Overall expectations for 2006 remain broadly unchanged

* Underlying excludes exceptional items, certain re-measurement items and economic hedges – see basis of preparation

Commenting on the results, Murray Hennessy, Group Chief Executive, said:
“The strategy to return the Group to profitable growth is on track. We delivered results ahead of expectations in a difficult trading environment, benefiting from a good summer performance, stronger trading in December, improved utilisation and early progress with our margin improvement initiatives.

The ongoing re-structuring of our operations will make the Group more efficient and effective. This work, together with targeted growth in specific customer groups and our strengthened capital base, will help ensure our planned recovery and offset the challenges facing the Group.”

View the full results announcement (PDF, 752KB). To view this document you will need version 5 or above of Adobe Acrobat Reader, available free of charge from the Adobe website.