UPDATE 1-UK car services firm RAC rises on new contract win


(Updates with share price, detail)

LONDON, Dec 29 (Reuters) - Shares in British motoring services firm RAC Plc sped higher on Monday after the firm said a joint venture company had won a seven-year contract with expected revenues of one billion pounds ($1.8 billion).

RAC said Lex Vehicle Leasing -- a joint venture with British bank HBOS -- would provide outsourced contract hire services to Ford Financial, part of U.S. auto giant Ford .

RAC shares were up 2.6 percent at 592 pence in early trade, among the top gainers in Britain's FTSE 250 mid-cap index.

RAC said the Ford Financial deal, which will see it provide services such as vehicle inspection and breakdown assistance, was the largest-ever contract won by Lex Vehicle Leasing.

"This contract is another example of our strength in managing large, complex vehicle fleets in high service environments," RAC Chief Executive Andy Harrison said in a statement.

RAC shares have outperformed the FTSE 250 by about 23 percent since the start of 2003.



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