TOM drives forward with 41% pre-tax profit hike

Group Business Editor

Tuesday 18 September 2012

SCOTTISH-headquartered TOM Vehicle Rental achieved a 41.1% hike in pre-tax profit from £1.42 million to more than £2m in the year to March, as turnover jumped from £27.3m to £38.4m.

CONFIDENT: Commercial director Robert Stewart believes TOM's track shows the firm can and will deliver on its objectives for growth.

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Ian mcconnell business editor

Managing director Jim Rafferty, who built the business and brought Caledonian Alloys co-founder Hugh Stewart on board as an investor and chairman in March 2010, yesterday highlighted an appetite for further significant expansion as the company unveiled its latest results.

Mr Rafferty, who now owns 50% of the Airdrie-based company's ordinary shares, appeared to hint at further acquisitions, declaring: "We remain open for new opportunities, which will present themselves."Referring to the current financial year to March 2013, he added: "We anticipate further significant growth in turnover and profitability."Underlining the appetite for expansion, commercial director Robert Stewart said: "The continued aspiration from TOM is to expand the breadth and depth of services we offer and increase our geographic footprint. Our track record shows that we will deliver on those objectives."TOM noted it had bought the trade and assets of the commercial vehicle operations of Ayr-based Glen Henderson, a Mercedes-Benz-authorised repairer and light commercial vehicle sales franchise, on September 30 last year.The commercial vehicle-focused TOM, which has a client base including the vast majority of Scottish local authorities, the National Health Service and Scottish Water, increased its fleet by more than 21% during the year to March to nearly 5000 vehicles.TOM, which specialises in rental, fleet management, commercial vehicle body manufacture, MOT testing, sales, servicing and repair, and offers a range from cars and small vans to tippers and refrigerated lorries, increased its workforce during the year to March by nearly 100, to about 330. This workforce includes about 60 people on the modern apprenticeship scheme.TOM, which has been in business for more than 20 years, describes itself as the "largest private employer" in Airdrie and as "one of the fastest- growing private companies in Scotland".It noted it had invested nearly £300,000 in new facilities at its main site in Airdrie, opened a rental and service depot at Broxburn in West Lothian, and introduced a dedicated fleet-management team.The company said a £7m financing package with GE Capital was supporting it in realising its "ambitions to invest in more vehicles and create jobs".Hugh Stewart was appointed as chairman of TOM Vehicle Rental to oversee long-term strategy when he came in as an investor in March 2010. He has a stake of about 25%.TOM has achieved very significant growth in profit and turnover since he came on board. It had made pre-tax profits of £729,000 on turnover of £22.3m in the year to March 2010. Mark Grier, of Wishaw-based machinery and business asset valuer and seller GMG Asset Management, also came in as an investor in March 2010 and was appointed a non-executive director of TOM. Gary Grier, a fellow director of GMG, was appointed as a director of TOM last month. The latest annual return from TOM shows Mark and Gary Grier each owning 12.5% of the vehicle rental firm's ordinary shares.Hugh Stewart said the advances in turnover and profit had been achieved in spite of a "challenging economic background and cash-flow pressures affecting many of TOM's customers".He added: "We have continued to refine our strategy to take advantage of growth opportunities."Mr Rafferty said: "It is credit to everyone that we have managed to implement our strategy in these economic times."Hugh Stewart is the founder of private equity investment vehicle Coralinn LLP.

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TOM drives forward with 41% pre-tax profit hike

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