Car parts and distribution giant Unipart, which announced 300 redundancies at its Cowley works in the autumn, is set to put its recent troubles behind it, according to a leaked report.

In a confidential memo to staff, chief executive John Neill talks of "turning adversity into opportunity" with record sales and operating profits for 2001 of more than £22m, with a £50m reduction in borrowings.

That compares with a £111m loss the previous year which was blamed on the disastrous £179m purchase two years earlier of rival company Partco.

Mr Neill remarked that the company's European Aftermarket Division achieved significant sales increases despite a depressed worldwide vehicle aftermarket, and that Unipart DCM, the warehousing and logistics business, had grown and won more than 20 new contracts.

He added that Unipart Logistics Systems had been successfully launched and was "a powerful illustration of the commitment and capability of Unipart people."

The Rail Division had performed well with both Railpart and NRS exceeding their financial targets, he said.

Speaking of Unipart's manufacturing operations, Mr Neill said: "Our colleagues in manufacturing were not immune to the huge pressures on manufacturers generally in the UK and, under difficult circumstances, produced some particularly creditable performances."

About 2,000 of Unipart's 10,000 employees hold shares in the company. Between them they own about 50 per cent of the business.

The shares are not quoted on the London Stock Exchange. Instead, their price is announced each year by auditors at the start of a formal share dealing period.