Novuna Vehicle Solutions and MHC Mobility have grown their combined fleet by 8% to 155,000 vehicles, aiding Mitsubishi HC Capital UK Plc to post a pre-tax profit of £126m.

Jon Lawes, managing director for Novuna Vehicle Solutions and MHC Mobility

Newly reported figures for FY23/24 reveal Novuna Vehicle Solutions increased new business volumes by 20.2%, with revenues climbing 17.7% over last year’s figures.

With a fleet valued at £1.9bn, up 11% year on year, Novuna increased its standing as one of the UK’s largest leasing companies.

Although the used market weakened, resulting in lower disposal profits per unit, it says the market remained strong compared to pre-Covid 19 levels.

Novuna has also secured new contracts with some of the UK’s largest corporate fleets as the business continues to invest heavily in its end-to-end decarbonisation solutions for businesses. Its Electric Vehicle charging forecourt opened in September at its Trowbridge premises and Novuna also expanded investment into alternative fuel solutions for the heavy transport sector. It’s working to support the first large-scale deployment of fuel cell electric HGVs in the UK, including through its work as the selected leasing partner within the Tees Valley Hydrogen Vehicle Ecosystem Consortium.

Increased penetration of the specialist assets sector enabled the business to expand its operating fleet by 5.7% to over 109,000 vehicles, cementing the company’s position as one of the UK’s leading vehicle leasing providers.

On the European side, the MHC Mobility vehicle leasing operation grew its fleet size by 13% with a record 35% increase in new business. MHC, which operates across Austria, Belgium, Czechia, Germany, Hungary, the Netherlands, Poland and Slovakia, said the rise reflected improved new vehicle delivery times and robust demand for its suite of mobility solutions.

Disposal rates contributed to the results, with the European second-hand car market remaining strong for most of the year. Arrears remained well under control, with bad debt charges below 0.1% of total assets, demonstrating “the company’s strong risk management practices and resilience”.

Jon Lawes, managing director for Novuna Vehicle Solutions and MHC Mobility, said: “Our unique capability to build, fund and manage the in-life maintenance across all vehicle types fuelled our performance this year.

“Driven by our customer-centric approach and end-to end decarbonisation expertise, we continue to secure contracts with some of the largest fleet operators as the business continues to lead the transition to net zero.

“Following the integration of MHC Mobility, we are focused on continuing to build on our reputation as a trusted partner for every vehicle and every business in the UK and across Europe.”

At group level, pre-tax profit for Mitsubishi HC Capital UK Plc reached £126m in FY 2023/24. Accounting for a one-time gain in FY 2022/23 related to the group’s investment in Gridserve, pre-tax profits rose by 8% year on year. New business volumes increased 1% to £4.5bn, as the group said it navigated challenging economic conditions which impacted consumers, SMEs and corporate clients.

The group’s commercial and customer-facing business divisions prioritised rigorous credit underwriting, continuous improvements to affordability assessments and enhanced customer servicing to build a sustainable platform for growth. These investments saw Novuna maintain its track record for low bad debt, achieving a ratio of just 0.30% for the year despite economic headwinds.

Robert Gordon, CEO of Mitsubishi HC Capital UK Plc, said: “At the heart of our success is our commitment to invest in our people and the technology to support our customers. Building long-term sustainable relationships that can withstand challenging market environments, whilst maintaining a high-quality portfolio.”

Mitsubishi HC Capital UK PLC’s full annual report for FY 23/24 can be found here.