Oxford logistics giant Unipart has seen its share price rise by seven per cent - a year after the performance of the company's car-parts division was lambasted.

The management team of the company's key automotive division left the group last year after "ill-judged cost-cutting measures" and poorly planned reorganisation damaged the business.

The division, which employs 3,500 people - including several hundred in Oxford - has now been completely restructured, with a new managing director, Dennis Henderson, who moved from Virgin Retail.

As a private company, Unipart is not obliged to reveal financial results, but the last accounts filed at Companies House show the automotive division made a pre-tax loss of £28m in 2006, compared with a £14m profit the previous year.

Chief executive John Neil said the division had since seen "real year-on-year growth". He added: "There is external evidence of a transformation in employees' attitudes and in customer satisfaction. We have put things in place to make this a very strong, effective business."

However, he said: "The turnaround of a big business does not happen overnight."

The automotive parts market was shrinking, he said, because cars break down less.

In a letter to shareholders, Mr Neill said the share price had risen from 42p to 45p. As there is no public market for shares, employees and major investors can sell for a brief period each year, in line with a valuation by accountants Grant Thornton.

The share price has been creeping up slowly for several years after plummeting from more than £1 in 2000, when Unipart learned it was to lose the Rover contract.

No dividend has been paid to shareholders for several years.

Once a nationalised company, part of British Leyland, Unipart has transformed itself into a logistics company and has targeted high-growth areas such as retailing and Internet. It recently signed a multi-million pound contract with Waterstones, and the Cowley warehouse services Halfords and Homebase.

It has also branched out into consulting, including a £9m contract introducing HM Revenue & Customs to 'lean production methods' which is predicted to save £440m.