ADDISON LEE GROUP SEES A RETURN TO STRONG GROWTH IN 2017
Over £70m of strategic investments in capability and acquisitions to boost revenues by more than a third.
Addison Lee Group, Europe’s largest car service, expects that its revenues will be more than a third higher in the financial year to August 2017, driven by more than £70m of investment in technology, strategic acquisitions and a return to growth in its core London market.
To compete effectively in a highly dynamic market, Addison Lee Group has re-engineered its core business. This means that after a tough financial year to August 2016, where total transactions declined by 7.5% to £259.5m, the business has returned to sustained organic growth.
EBITDA in the financial year to August 2016 was £53.9m, following investment in a new management team, sales and marketing expertise, digital product and CRM capability.
The business has also invested to scale operations to meet increasing customer demand by building a new operating hub at Heathrow and opening a 250 person customer service centre in Peterborough.
Andy Boland, Addison Lee’s CEO said: “We’ve continued to generate solid profits and cash flow while investing for the future. We’ve also grown our driver numbers as a result of customers returning to Addison Lee.”
Over the last 12 months, Addison Lee, which offers a premium managed car service of over 5,000 vehicles as well as a courier business, and has over 80% of the FTSE 100 as customers, has also made significant capital investments to expand its services and geographic reach.
“There is now a global opportunity to build on Addison Lee’s premium position in the London market and our investment, product and people will enable us to take advantage of it,” said Boland
In June last year, it purchased Tristar, an executive car service with a global network spanning 83 countries and in January this year invested in Flyte Tyme, a leading East Coast car service business, creating a US$100m operation in the United States and one capable of taking advantage of the US $1.4 billion annual ground transportation market in New York
Boland said: “Our expansion has created a strong trans-Atlantic capability to serve our London customers and passengers in the United States. Customers like what they see in London and are asking for the same service in New York and other big cities.”
Nobody said running a modern taxi business was going to be an easy gig … nevertheless, the boss of Addison …