Lombard fights off competition to
regain lucrative British Gas contract.
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This has been reflected in a flurry of deals
across the private and public sector. This is partly attributable
to the fact that lessees have reached the end of their financial
year, a typical time for them to sign new deals, although it could
also be the result of a general upturn in the economy.
There have also been deals signed which are
synonymous with the recession. For example, it was announced last
month that Lombard had used leasing to support the acquisition by
metal pressing and finishing firm, Leonardt, of Telford-based
Berkeley & Co. It acquired Berkeley’s asset base in a move
which “protects their working capital to support the ongoing
operation of the businesses”.
This financing – which supported a merger
without which the two companies may not have remained afloat – is
similar to the large number of cash-strapped companies which have
turned to asset finance providers as a means of refinancing during
the downturn.
The RBS leasing subsidiary also last month
signed a £100,000 (€110,623) deal for the financing of a children’s
play centre, and also successfully tendered for the financing of
2,000 replacement vans for British Gas.
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By GlobalDataAlthough the lessor has been a key funder for
the energy utility company, it had to beat off stiff competition
from other finance houses to win the deal.
Meanwhile, JCB Finance UK and Landpower
Leasing Limited – which is owned by the former – last month won a
£1 million leasing deal with Bridgend County Borough for the lease
of vehicles and plant.
British Salt has signed a three year contract
hire agreement worth £750,000 (€841,000) with Volvo Financial
Services, for the provision of 11 new Volvo FM-440 6×2 tractor
units.
The deal will replace all but two of the
company’s 13 vehicles, keeping it on track to be an all-Volvo fleet
by the end of the year. The contract hire agreement will include
service and maintenance through the Middlewich depot of Thomas
Hardie Commercials, the dealership network that arranged the
deal.
Local Authority fleet specialist TransLinc has
also signed a flurry of deals, including a seven-year contract hire
of T5000 tractors for Stockport Municipal Borough Council, and six
Fiat Doblo vehicles to the London Borough of Lambeth on a four-year
contract hire agreement.
In the public sector, it emerged last month
that Scottish Water is looking for a lessor to finance telematics
systems for its fleet of 1,500 vehicles for five years in a deal
worth around £3 million excluding VAT.
Also, in a deal worth somewhere between £27
million and £81 million, London & Birmingham Railway is looking
for someone to finance an operating lease for 40 to 120 new vehicle
units that will be in service by May 2011.
Brendan Malkin
