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Vehicle hire

Reference
S8942
Turnover
£1m to £2m
Sector(s)
Automotive
Region(s)
West Midlands
Added
20 June 2022

Business description

The offered company is a midlands-based, privately owned business which offers car and van rental services to individuals and businesses for short- or long-term hire.

The Business has 205 rental vehicles that they own, rent or lease from its suppliers. The Business prides itself on having a new and up to date fleet of vehicles, with 87% of its vehicles being under 24 months old. The Business has a well spread customer base and has good relationships with their repeat customers, 81% of their rental income come recurring/existing customers.

The Business has consistently generated sales in the range of £1.8 million to £2 million. The Business’s profits have increased in recent years, this is largely attributable to higher vehicle prices due to current market conditions (higher profit on disposal), management expects that this increase in profits will be sustained in the short to medium term.

The shareholders want a full exit from the business and have invested in depot managers to ensure the day-to-day operations continue in their absence.

Highlights

  • Operates from multiple sites across the West Midlands
  • Highly profitable on both rental and sale of vehicles
  • Generates significant positive cash flows
  • Fleet includes 152 vans and 53 cars, with over 60% under 18 months old and 87% under 24 months old
  • Secure pipeline of 51 new vehicles to be delivered throughout the remainder of this calendar year
  • Excellent insurance claims history
  • Excellent premises on flexible leases
  • Experienced and reliable staff
  • Member of the British Vehicle Rental and Leasing Association
  • European hire available

Financials

Turnover (£'000) Adjusted EBIT (£'000)
2010 (Actual) 0 0
2019 (Actual) 1,971 313
2020 (Actual) 1,826 143
2021 (Actual) 1,802 734
2022 (Forecast) 1,986 849

Prospective purchasers

  • An existing car/van rental business seeking expansion via acquisitions
  • A company that wants to add to their existing fleet
  • A company looking to expand its service offering into the Midlands
  • A company with a strong retail arm, to capture extra margin on vehicle sales

Reason for sale

The shareholders are now considering their retirement options and other endeavours, they are looking to realise the value that they have created to date

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