AAM Group has reported fast-growing turnover and a business reposition to cash positive as it celebrates the two-year anniversary of its car subscription business.

The success of the Mycardirect brand has helped drive a 46% YoY rise in AAM Group total sales

Officially launched in September 2020, Mycardirect, along with the group’s other brands of Onwrd and BestCarFInder, saw total sales increase by 46% to £23m in the 12 months to June 2022.

The company said the success of the Mycardirect subsidiary had been “nothing short of remarkable and has proven vindication for the group’s decision to invest £6.5m in the project”.

Aimed at both retail and business customers, Mycardirect achieved profitability 18 months ahead of schedule.

Mycardirect CEO Duncan Chumley said the fact that the car subscription product appeals to both market sectors was at the heart of its success.

“The flexibility we offer gives individuals and companies the confidence and peace of mind to choose a vehicle, safe in the knowledge that if circumstances change, they can switch vehicles or reduce, extend or cancel the contract to suit,” he added. “I am confident that this excellent proposition will herald further growth over the next two years.”

EV growth has also undoubtedly driven the business; EVs, including hybrids, now make up nearly 40% of the AAM Group fleet, which totals over 3,000 vehicles. And Chumley noted that the flexibility of car subscription had given customers the confidence to choose an EV for the first time.

AAM Group chairman David Murray-Hundley said Mycardirect had “done a great team job” as part of the revenue increase the group this year.

He continued: “This is particularly pleasing in a time of challenging new vehicle supply issues and a cost-of-living crisis which is putting pressure on consumers and businesses. We continue to focus on costs, customer service and the customer journey. I am proud of the whole team, who, collectively, have put the group into profit.”

Murray-Hundley said the results enabled the group to look ahead with confidence and continue to invest in the business, in particular more digitalisation of the business and customer experience, along with a focus on operational efficiencies.

He added: “What is clear is we have an amazing, loyal team in our business and we need to continue investment in them. Moving forward we will be looking to grow via further investment but at the same time making sure the group is facing less risk with world market challenges.”