At last, signs have emerged that Britain’s
leasing industry is getting back on its feet following the turmoil
of the previous 18 months.
On the back of greater freeing-up of capital,
as well as an upsurge in market confidence, a string of
acquisitions have been made in recent weeks – Heritable Asset
Finance, Total Asset Finance, the book of Universal Leasing, and
Leasedirect Finance. Several more are expected to follow.
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Also, recruitment into leasing companies is
once again back in full swing, after dwindling almost to zero
during the latter half of 2009.
According to interviews carried out last month
by Leasing Life with the UK’s top 10 asset finance recruiters,
there has been a dramatic pick-up in demand over recent weeks for
middle managers demanding £70,000-£100,000 (€78,000-€111,000)
salaries.
One recruiter even reported interviewing just
shy of 50 candidates, mostly collections and risk specialists,
during the first three weeks in March alone.
While champagne corks might not be popping
quite yet, with high numbers of compulsory and voluntary
insolvencies still causing headaches, as well as a continued
shortage in demand from the right customers, all this represents
reasonable grounds for optimism.
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Grounds for optimism
But as the industry pulls itself out of the
mire it found itself in, and also begins to report healthier
financial results, some time should be spent praising those leasing
companies which have not just made it through this part of the
recession, but have also prepared themselves for the good times
that lie ahead.
We go behind the scenes of a number of
companies which have proved themselves in exactly this
way.
While not all have reported fantastic profits,
or year-on-year increases in turnover, or growth in the sizes of
their portfolios, or even a great desire for expansion, they all
remain very much open for business.
Despite the hammering they have received over
recent months, they have all set themselves apart from the pack by
their spirit of adventure, and their ability to adapt to the new
order.
There are, however, some which have continued
to grow during the recession, the most obvious being Close Asset
Finance which, although blessed with rather better support from its
parent than most lessors, has still managed to ride the crest of
the downturn while still focusing on the riskier end of the
market.
It has also done what so many others have only
boasted they wanted to do, and made decent acquisitions – including
Tokyo Leasing – and added new businesses to its existing armoury –
Close leasing and Close Business Finance.
Hats off also to Aldermore, Investec Asset
Finance, CHG Meridian and a few others which have been brave enough
to buy businesses at knock-down prices.
Success is also quantifiable through other
measures.
We also review those which have shown
themselves to be masters at installing the right systems (Arval),
diversification (Azule Finance), service intregration (ECS),
growing invoice discounting together with leasing (Lloyds Banking
Group), and working with brokers (Investec Asset Finance, ING Lease
UK, Aldermore Bank, Armada Finance).
The list goes on.
Brokers, also, get a mention, many of whom
have shown themselves to be masters of innovation and, given the
beating they have received from the leasing community, also of
survival.
Leasing remains a rough and tough industry to
be in, but also an exciting one, as the following company
profiles reveal.
Profiles
Black Arrow
Finance and Armada Finance
