Leading vehicle leasing firm Zenith has announced record profits after seeing sales rise more than 20 per cent to £35 million.

The Calverley-based company, which has a fleet of 10,000 cars it leases out to large firms, saw profit before tax rise to £1.8 million for the year ending March 31, a 20 per cent increase.

Today managing director Andrew Cope dismissed fears the bubble had burst in the company car sector by announcing Zenith's drive for further rapid growth.

He said it was planned to grow the company's fleet to 16 or 17,000 in the next two-and-a-half years, with staff numbers in Calverley increasing from the current 65 to around 100.

"The company car market is strong and is going to be around for a very long time yet," he said.

"Since I have been in the industry I have been reading about the decline in the company car but that does not reflect what is really happening out there."

He said the market had changed with less senior business people now using the vehicles, but insisted recent tax laws made the company car as attractive as ever.

Tthe success of Zenith, founded in 1989, had been built on attracting business from larger rivals, he added.

"If we had only grown at the speed of the market, which is about one or two per cent per annum, our achievement would not have been spectacular," he said.

"But there is a lot of dissatisfaction with some of the large bank providers of cars and we are picking-up business on the back of that."

Mr Cope said the firm was winning a lot of contracts with blue chip companies based in the South East. Clients include Persimmon Homes, CB Hillier Parker, DuPont (UK) and Societe Generale.

He said the company had benefited from a period of relative stability in the used car market.

"The business is growing quite nicely and we are winning lots of new, high profile accounts," he said.

During the year, Zenith developed further new services and products including a fully-integrated on-line corporate quotation system and a new Zenith Direct division for individual clients.

Company chairman Henry Dean said the company's increased profitability resulted from strong organic growth, coupled with continued productivity improvements.

"In a period of considerable consolidation of our industry, the group has demonstrated considerable customer retention as well as continuing the trend of strong organic growth in areas where our high service levels and range of services have been key factors," he said.