Leasedrive Velo is readying its war-chest for acquisition and expects to make at least one announcement later this year.
The company has been linked with a number of leasing companies over the past year, and has suffered speculation about its own position as an independent provider, but the management team says the business has the infrastructure to absorb growth and “deep-pocketed investors” to make it happen.
Robert Whitrow, chief financial officer, was brought in to oversee acquisitions. He claims that a number of leasing providers are “hanging on by their fingernails” after the recent recession.
A recent industry report by Plimsoll agrees. It suggested that a third of leasing companies are potentially up for sale.
“We have a steady background and an investor base that is playing against an industry that has taken significant financial hits,” said Whitrow.
“We know who’s in trouble but we’ve not seen any shut up shop or cal in the administrators. My view is that there’s a number that have scrabbled through but who will look to get out. There is a lot of opportunity for inorganic growth – several organisations are looking at divesting from their leasing operations.”
Leasedrive Velo is also anticipating organic growth centred on its policy of singing only sole supply contracts. It expects to return to its pre-recession curve of signing up one fleet a month later this year and has high hopes in the public sector after being awarded the Government framework agreement contract at the end of 2009.
“It will support our organic growth in both contract hire and rental – we are one of two companies that have both framework agreements,” said Leasedrive Velo commercial director Roddy Graham.
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