Lombard Vehicle Management
back on track as operating loss leaps into £35.7m profit. Claire
Hack reports
Lombard Vehicle Management (LVM) has rounded off its
financial year with a return to the black, according to its most
recently published financial statements.
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It was reported last year the
company had been designated “non-core” to the business of parent
RBS, but it continued to perform in 2009 and into 2010, scooping
deals including an agreement for 800 vans with lawn treatment
company GreenThumb.
The company shifted confidently
back into profitability in the year to 30 September 2009, according
to its non-consolidated financial statements, although it was
reported earlier in that month it was leaving the introducer
market, along with Lombard Business Finance, meaning 85 jobs across
the two divisions were under threat.
Nevertheless, having suffered a
loss after tax of more than £17m in 2008, the company saw a profit
of £15.6m in 2009. Turnover dropped by 5.4% to £75.1m but operating
profit also rose significantly, up from a loss of more than £9m to
a profit of £35.7m.
The return to profitability,
according to the financial statements, took place in the light of
the UK government taking control of the Royal Bank of Scotland
Group in December 2008.
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By GlobalDataThe following year saw the company
cut all its introducer ties, although deals were signed in 2009
with a number of companies, including the Automobile Association
for the supply of 167 recovery vehicles.
By early 2010, the company had
signed the GreenThumb deal, a contract hire agreement carried out
on an exclusive basis, and seemed to be showing signs that recovery
had firmly taken root.
By May 2010, it had also secured a
deal to become a vendor under an expanded UK commercial auction
programme at Manheim Auctions.
The company also had transactions
with the government on an arm’s length basis and at 30 September
2009, balances with government and affiliated bodies totalled more
than £1m.
Deals are not currently transacted
through point-of-sale finance at dealerships and its main routes to
market are via business to business arrangements, as well as
through RBS bank channels and its “dedicated sales forces”.
As of 31 December last year, its
total fleet size was 77,777 vehicles, divided between 58,563 cars
and 19,214 vans.
The senior executive team at the
company, reporting to managing director Stuart Houlston, is
currently made up of eight people.
Christopher Black is head of customer services; Paul Murray is
head of information business support; Richard Richmond is head of
re-marketing; Linda Wright is head of SAP and acting head of
fulfilment; Peter Crabtree is head of strategic accounts; Nick
Taylor is head of sales co-ordination; Nigel Kerr is head of
contract hire; and Aftab Fazal is finance manager, decision
support.
