Hitachi Capital Vehicle Solutions achieves £19.7m profit despite Covid

Hitachi Capital Vehicle Solutions (HCVS) has reported strong growth during the past financial year (2020/21) despite the fleet industry being hard hit by the pandemic.

Profit before tax was £19.7 million, compared to the £25.7m achieved for FY19/20.

Then it was operating a fleet worth £1 billion, today that has grown by 24% year on year to £1.2bn, securing its number seven ranking in the FN50. 

HCVS increased its overall fleet by 17%, adding in excess of 14,000 vehicles, with the expanded fleet now comprising more than 95,000 assets despite the sharpest decline in new car registrations since 1992.

Its personal leasing offering, marketed both directly and through a network of brokers and dealers, has grown 22%, now comprising of more than 38,000 vehicles.

HCVS claims to have achieved the largest percentage growth out of the top 10 providers, generating new customer acquisitions in a time when the overall FN50 fleet declined by 2.5%.

Jon Lawes, managing director at Hitachi Capital Vehicle Solutions (HCVS), told Fleet News that the “success and breadth” of its proposition across “all vehicle types” was behind the expansion of its fleet despite a declining vehicle leasing market.

“Our total asset solution and market leading decarbonisation strategy has set us in pole position to support complex fleets on their journey to electrification and led to exceptional results in a challenging year for the industry,” he continued.

“I’m also proud of the role our specialist teams have played in keeping mission critical and essential fleets mobile during the pandemic by rapidly processing orders for customers at the forefront of the Covid-19 response.”

The vehicle leasing company has provided funding of £137m for electric vehicles (EVs), increasing its EV fleet by 368%.

HCVS has committed to electrifying 100% of its car & small van fleet, as well as 50% of its funded van fleet, by 2030. It is also providing an EV leasing proposition for Gridserve. 

HCVS’s success was underpinned by some big contract wins in the past year, including with DEFRA (Department for Environment, Food and Rural Affairs) to manage its fleet of 4,500 cars.

“Looking ahead, there is a strong outlook for our Vehicle Solutions business,” said Lawes. “With expertise across every vehicle type, from small cars to complex HGVs, and a rapidly growing EV offering, we are ideally placed in the year ahead to sustain our reputation as one of the UK’s leading vehicle leasing companies.”

At a group level, Hitachi Capital (UK) has reported a profit before tax of £104m for the 2020/21 financial year.

Despite a decline of almost 10% in GDP, Hitachi Capital generated £3.3bn of new business, with a strong recovery in the second half of the year maintaining Hitachi Capital UK’s level of Net Earning Assets at £5.9bn.

New business volume in the first six months of financial year 2020/21 recovered to 69% of 2019/20 levels and in the second half of the year, new business volume was at 99.7% of the previous year, despite two further lockdowns.

Hitachi Capital (UK) PLC’s full annual report for FY20/21 can be found here.