Good fleet managers are “worth their salt” to their business.

But their numbers have been in decline which is “a real shame”, according to Andrew Mann, managing director at JCT600 Contracts.

“There is more need for fleet managers now than there has ever been with all the complexities involved in running a fleet,” he says.

“They will come up with the best initiatives because they are in direct contact with drivers and the business internally.

They have to distil a vast range of vehicles into one policy and put in restrictions to create an allowable range that makes cost-effective sense while motivating the employee.”

Mann believes fleet managers “come into their own” when running fleets in excess of 50 vehicles, although the case becomes irrefutable when running a few hundred vehicles.

“The process is always easier for us when we are dealing with a fleet manager,” he adds.

The leasing sector has endured tough economic conditions over the past four years, from the residual values collapse and banking crisis in 2008 to the double-dip recession and sluggish recovery. JCT600 Contracts, though, has emerged relatively unscathed.

Even at the depths of the crisis, the Yorkshire-based business was making solid earnings; its accounts from 2008 reveal pre-tax profits of £1.8 million on turnover of £13.38m.

Groups with significantly higher turnover couldn’t match those returns.

Its franchised dealer parent company JCT600 is renowned as a prudent operator which reinvests its money. “That approach sits well with Contracts because we are a conservative business which doesn’t take massive risks,” Mann says.

Despite this philosophy, the economic conditions have forced JCT600 Contracts into one notable change: it has started dipping into its parent’s pocket to support some clients’ funding needs.

Fortunately, JCT600 is cash-rich.

‘’The group has proved most supportive over the last few years as our funding model has been forced to change from agency – both disclosed and undisclosed – for 97% of our business to a mix of agency, back-to-back and group funds.

This has been invaluable when the banks have stepped away from the direct support of some of our clients,” says Mann.

'Huge gaps in pricing quotes'

He describes the sector as being “as competitive as I’ve ever known”, adding that: “The gaps in pricing are huge.”

However, JCT600 Contracts enjoys an enviable position with many of its customers, built up over many years.

Contracts tend to be multi-supply arrangements where JCT600 Contracts is one of several funders, but most of its customers will offer it a second chance to win their business if its initial quote comes in too high.