Hire firm prospers as fleets are thinned out

Nov 12 2008 by Chris Knox, The Journal

AVEHICLE hire firm is looking to capitalise on the economic downturn after setting up its first depot outside the UK and doubling the size of its base in Stockton.

Reflex Vehicle Solutions has seen its sales rise since the onset of the credit crunch, with businesses looking to cut back on their commercial vehicle costs by renting cars and vans.

The firm, which was only set up four years ago, now expects to see its turnover almost double by the end of the year to around £30m, with the aim of creating a £75m turnover business in three years.

Its rapid growth will also see the firm grow its 108-strong staff to around 180 during the same period as well as expand its reach into mainland Europe, with a particular focus on Spain.

The firm recently opened its first non-UK site in Dublin, where it has become sole supplier to courier giant DHL, and has created six new posts to ensure its success in Ireland.

John Collins, Reflex managing director and former sales and marketing director at Darlington-based rival Northgate, said: “The economic downturn has benefited us and we remain on course to more than double in size in three years’ time.

“In times of financial hardship people look to things like their commercial vehicle costs and how they can save money. In the end people still need to do business and we allow them the option of delaying what can be sizeable investment in commercial vehicles.”

As well as investing £2m into its new Dublin depot, the firm has invested £25m in its fleet of 8,500 cars and vans, which has grown by around 2,000 during the last year.

The firm, which also has a site in Oxfordshire and is to open a new four-acre depot next month in North London, also recently doubled the size of its 6,000sq ft head office in Stockton, where it also has a depot and employs around 80 staff.

However, Mr Collins did say that the firm had seen a reduction in the residual values of its fleet.

He said: “We usually sell our rental cars and vans on after about two years. However, with values reducing, we are keeping hold of our vehicles for around three years to get more value out of them in the rental market.”