July 21, 2024
News

Novuna’s investment of £1.9bn boosts UK leasing position

Novuna Vehicle Solutions and MHC Mobility, the UK and European operations of Mitsubishi HC Capital UK PLC, have expanded their combined fleet by 8% to 155,000 vehicles. This growth has significantly contributed to the Group’s overall pre-tax profit of £126m.

Novuna Vehicle Solutions UK operation

With a fleet valued at £1.9bn, marking an 11% year-on-year increase, the company has continued to invest in comprehensive decarbonisation solutions.

In September, Novuna Vehicle Solutions opened a state-of-the-art Electric Vehicle charging forecourt at its Trowbridge premises and expanded its investment in alternative fuel solutions for the heavy transport sector. As the selected leasing partner within the Tees Valley Hydrogen Vehicle Ecosystem Consortium, Novuna is supporting the first large-scale deployment of fuel-cell electric HGVs in the UK.

Novuna’s capabilities in delivering asset solutions and large-scale decarbonisation have secured new contracts with major UK corporate fleets. Despite a weaker used vehicle market affecting disposal profits, overall market conditions remained strong compared to pre-Covid-19 levels. Increased penetration into the specialist assets sector has expanded the company’s operating fleet by 5.7% to over 109,000 vehicles.

European performance

MHC Mobility, Novuna’s European vehicle mobility operation, which spans Austria, Belgium, Czechia, Germany, Hungary, the Netherlands, Poland, and Slovakia, recorded a 35% growth in new business volumes. This growth reflects improved new vehicle delivery times and strong demand for MHC Mobility’s comprehensive suite of mobility solutions.

Disposal rates in the European second-hand car market remained strong throughout most of the year. Arrears were kept well under control, with bad debt charges below 0.1% of total assets, showcasing the company’s strong risk management practices and resilience.

Jon Lawes, Managing Director for Novuna Vehicle Solutions and MHC Mobility, said: “Our unique capability to build, fund, and manage the in-life maintenance across all vehicle types has driven our performance this year. Driven by our customer-centric approach and end-to-end decarbonisation expertise, we continue to secure contracts with some of the largest fleet operators, leading the transition to net zero. Following the integration of MHC Mobility, we are focused on building our reputation as a trusted partner for every vehicle and every business in the UK and across Europe.”

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