Six months after the acquisition of Masterlease, and with a new
board appointment, the plan for Leasedrive is to keep getting
better not just bigger, commercial director Roddy Graham tells
Leasing Life.
Integration with Birmingham-based Masterlease
is nearly complete with the two businesses running side by side and
Graham insists the future of Leasedrive’s new stable mate is
secure.
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“Normally when acquisitions are made the first
thing that happens is you close a few offices and fire a few
people,” says Graham.
“We haven’t done that because what we have
with the Masterlease operation in Birmingham is magic. It is a
great business.”
Graham said the Masterlease business was close
to Leasedrive’s own business model of blue chip customers and a
focus on customer service.
The acquisition of Masterlease from Ally Bank
(formally GMAC) will more than double the turnover and EBITA of
Leasedrive, said Graham.
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By GlobalDataHe added growth since the deal in December
2010 has been modest with four or five new customers signed to each
business in the last six months but said the focus is on quality
not quantity.
“We have a model that works,” said Graham.
“Every one of our major clients has a main board sponsor. I know
all our customers”
“We genuinely don’t place a great deal of
store on fleet size; rather we place a great deal of store on our
customers, customer retention, our profitability and our ability to
make it work.”
The combined fleet of the integrated
businesses stands at around 35,000 which places the company just
inside the Fleet News Top 10 and, despite his indifference, Graham
said he would be surprised if the company didn’t climb up the table
over the next few years.
Focused growth
The
appointment of Paul Fleming to the executive board as Sales and
Marketing director is part of a strategy not averse to such
growth.
Fleming, a qualified engineer, has been
running his own advisory business and was previously chief
executive officer of Alternatech Fuel Systems, managing director
Europe for Britax Childcare and, with the Volkswagen group, first
as chief executive for Europcar UK and then president of Volkswagen
Brazil.
Charged with identifying and achieving growth
in the right areas, Fleming said he is in no rush and, like Graham,
wants to start with a happy existing customer base.
“At the moment I’m in data gathering mode to
define exactly what the objectives, structure and focus need to
be,” said Fleming.
“Whatever it is, it will focus on
strengthening and building the customer base, building a business
which is even better tailored to our customers’ needs.”
For both directors patience is important but
Graham hinted further acquisitions, although not on the immediate
horizon, are not out of the question for Leasedrive.
“There will be other opportunities and we will
look at them and give them a balanced appraisal,” said Graham. “We
don’t rush.”
Indeed, Graham said the Masterlease deal had
been worked on for two years before being finalised and would have
fallen through were it not for a “throwaway comment at lunch” with
Investec.
The bank purchased the company from GMAC with
a partnership agreement in place with Leasedrive to manage their
asset while a process of novation will see the asset book transfer
over to Leasedrive as fleet contracts are renewed.
Graham believes Leasedrive taking control of
Masterlease came as a surprise to many in the industry and he said
it’s a business that seems like it’s punching above its weight.
Proud of the acquisition of Masterlease,
Graham said part of the reason behind Fleming’s appointment is to
fulfil the potential for moving up a division the deal
provides.
“We said we wanted to strengthen the board to
bring us up that notch. We are now a bigger company we have to
think like a bigger company and behave like one.”
“Our customers expect us to always be at the
vanguard of delivering efficiencies because everyone wants the best
but they want to pay for value. That’s what we want to do.
In the meantime, said Graham, the plan for
Leasedrive is simple: “Our objectives are customer stability,
profitability stability, and ensuring our business is financially
robust to ensure investment in the future.”
grant.collinson@vrlfinancialnews.com
