Number of public sector
contracts rose 13% last year.
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The greatest market share of public
sector leasing is now held by just a handful of major leasing
companies, according to figures released by consultancy Digital
Networks Ltd.
Figures for the year ending 31 March
2010, based on data published in the Official Journal of the
European Union, show SG Equipment Finance holds the largest
market share by value at £18.2m (€20.6m), while JCB has the largest
share by number of contracts, with 43.
Digital Networks director David Shone
said: “JCB had the highest number of tenders because they did quite
a lot of relatively small business.”
Although the overall value of awards rose
year on year by 60% to £55.6m, there are now just six leasing
companies with a major presence in the field, Shone’s data
showed.
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By GlobalDataThere are a total of 21 other companies
also operating in the public sector, including the leasing arms of
Hitachi, ING and Lloyds, but most had less than 1% of the market
share, according to Shone.
Shone said: “CHG Meridian got the
smallest percentage [of the top six] and it had £1.3m of deals.
Below that, you are a looking at a very small percentage of the
market share.”
Among them, the top six companies won
contracts worth £51.6m, leaving the other 21 with just £4m worth of
business, or less than 9% of market share by value.
A total of 79 contracts were awarded,
rising 13 per cent from last year, with SG Equipment Finance
following JCB with 26 awards.
The lion’s share of invitations to tender
came from local authorities, at 81% of the total, while the NHS and
further education made up 8% each and another 3% came from fire
services.
The actual number of invitations dropped
year-on-year by 20%to 52, while the assets financed were mainly
vehicles, including cars, vans and park maintenance equipment.
A year ago, the public sector leasing market
was more crowded, with eight companies doing business worth more
than about £1m and JCB topping the table for market share by value.
However, the total value of contracts awarded suffered a 51% fall,
totaling £34.4m.
|
Public sector contracts |
||
|
Company |
Market share by value (£m) |
Market share by number |
|
SG Equipment finance |
18.3 |
20.5 |
|
JCB |
15.6 |
33.8 |
|
Asset Advantage |
6.8 |
4.7 |
|
Cranmer Lawrence |
6.2 |
7.9 |
|
Siemens Financial Services |
3.5 |
2.3 |
|
CHG Meridian |
1.3 |
4.4 |
|
Other |
3.9 |
5.4 |
|
Total |
55.6 |
79 |
|
Source: Leasing Life |
||
