One of our clients is an environmental services business owned jointly by a number of local authorities.

 

The fleet they use belongs to the councils with their use ring fenced for the council that owns them

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We worked with the business to undertake modelling and then develop a business case that transferred ownership of the fleet to the business.  Doing this enabled increased efficiencies in the management and operation of the fleet.

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The work examined:

• the scale of the opportunity

• the risk and potential reward of the opportunity for both the business and partners including analysis of tax and profit distribution implications

• the critical success factors for the opportunity

 

The work also evaluated possible mechanisms for delivering the opportunity including:

• making fleet operations a profit centre

• creating a separate subsidiary entity

 

Results

 

The work identified efficiency savings of around £1.5m.  These came from a number of areas including: hire, procurement and fleet maintenance.

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