LeasePlan sets sights on £5bn stock flotation as leasing “megatrend” takes off
One of the world’s largest rental and leasing companies is reportedly preparing for a blockbuster £5bn stock market flotation following record profits.
The firm claims the results were thanks to the “clear megatrend” of consumers turning their back on traditional car ownership.
LeasePlan, which has a fleet of 1.7m cars worldwide reported a 13% jump in profits to £600m in 2017. LeasePlan’s success correlates with ContractHireAndLeasing’s Personal Leasing Report, which found personal contract hire (PCH, or leasing) overtook traditional hire purchase (HP) in the UK last year.
In fact, HP actually shrunk by 9.8% in the 12 months to November 2017, while PCH grew 12.7% – a sure sign that the leasing is performing strongly in an uncertain market.
Tex Gunning, LeasePlan CEO, said: “Looking ahead, we can achieve so much more. There is a clear megatrend from ownership to usership and subscription models taking place.
“Increasingly, our customers – whether they are corporate, SMEs or private individuals – would prefer a ‘Car-as-a-Service’ with no strings attached in terms of car type or duration. They just want ‘any car, anytime, anywhere’”.
LeasePlan has not been negatively affected by the backlash against diesel cars, although it has confirmed its commitment to leading the transition from internal combustion engines to alternative powertrains, with an ambitious target for a zero emissions fleet by 2030.