Lex Autolease, the car leasing company owned by Lloyds Bank, has reported a pre-tax loss of £10.6m ($14.2m) for 2024, marking a significant downturn from its previous profits.
Headquartered in London, the business had posted pre-tax profits of £124.4m in 2023 and £544.2m in 2022.
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Despite the loss, Lex Autolease’s revenue increased from £2.2bn in 2023 to £2.4bn in 2024.
The board attributed the loss to increased depreciation charges on the growing fleet, reduced profits from vehicle disposals due to second-hand market conditions, and higher interest expenses amid rising interest rates.
The company holds net assets of £182.1m as of 31 December 2024, down from £190m in 2023.
Property, plant, and equipment increased to £5.73bn from £5.44bn, reflecting changes in fleet composition and vehicle costs.
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By GlobalDataLex Autolease’s funding from within the Lloyds Bank Group resulted in borrowed funds of £5.84bn at the end of last year, up from £5.41bn in 2023.
The directors noted that new business volumes decreased by 6%, influenced by high prices, residual value risk management, and economic pressures.
The value of funded vehicles grew by 6% in 2024, driven by rising costs of new vehicles and a shift in consumer interest towards electric and hybrid vehicles.
Lex Autolease maintained a 17% market share in deliveries for 2024.
The company also scrapped its dividend to Lloyds Bank, having paid £439m in 2023 and £708m in 2022.
Lex Autolease expects muted growth in new car and light commercial vehicle registrations this year due to the Zero Emission Vehicle mandate.
Used car prices stabilised in 2024, particularly in the latter half, with expectations of continued stability into 2025.
However, the rising supply of used battery-electric vehicles may exert downward pressure on this market segment, the group said, adding that while used vehicle prices stabilised, some volatility is anticipated as the industry transitions to electric vehicles.
Earlier this year, Lex Autolease formed a partnership with motoring app Caura to allow its personal contract hire customers to manage all aspects of their vehicle needs.
