Gap Group on acquisition trail after £70m finance deal

Deputy Business Editor

Thursday 7 March 2013

PLANT and tool hire company Gap Group is stepping up expansion plans after sealing a £70 million asset finance deal.

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The three-year agreement, with Royal Bank of Scotland's invoice finance division, will help the Glasgow business open up several new depots annually. Along with the new funding, RBS has taken over from Clydesdale Bank as the banking partner for Gap.

Family-owned Gap employs around 1000 people and operates from 67 locations across the UK, including 13 depots in Scotland.As well as traditional plant and tool outlets, some of the new depots will be in specialist areas including non-mechanical equipment such as fence panels and crowd control barriers.Douglas Anderson, who runs the business with his brother Iain, said: "We will probably add one or two plant and tool depots a year as we have almost completed the coverage there. Along with that we will put in three to four specialist depots."The business, founded in 1969 by Douglas and Iain's father Gordon, is predicting revenues will rise 12% from £85m to £95m in the 12 months to the end of March this year.Douglas Anderson added: "From a low in 2010, where we lost money, we have pulled it back bit by bit."The [financial results] are very encouraging and we are now above the peak seen in 2008 and margins are slowly returning."Danny O'Neil, chairman at Gap, said: "The three-year committed funding package together with our strong cash flow will be key in allowing us to grow our asset base for the benefit of our customers." Alan Maudsley, from RBS, corporate banking, said: "Gap has one of the newest fleets within the sector, and has clear ambitions for the future."

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Gap Group on acquisition trail after £70m finance deal

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