Novuna Vehicle Solutions has posted record pre-tax profits of £54m, contributing to record profits of £130.1m for the group, despite the semiconductor shortage.  

Jon Lawes, managing director at Novuna

Its newly released annual results show that latest customer acquisitions helped the business defy the general industry downward trend, and its fleet is now valued at £1.5bn, up 21% year on year. This in turn consolidates its position as the seventh largest leasing company in the UK.  

The success was attributed to increased revenues from an 8% expansion in its contract hire fleet, with the addition of over 6,000 vehicles to its operating fleet of over 98,000 assets. It’s also gained from the strong demand and rising prices in the used car market, as well as lower bad debt charges.  

The company also said its heavy investment in a bold decarbonisation strategy had driven the results. Novuna recently pledged to electrify 100% of its car and small van fleet (3.5 tonnes and under) and 50% of its funded van fleet (vehicles over 3.5 tonnes) by 2030.  

Across its funded customer fleet, alternative fuel vehicles have increased from 11% to 19% across all asset types, with the overall pure EV fleet increasing by 173% year on year.  Its investment in end-to-end decarbonisation solutions for businesses includes an ultra-low emission vehicle salary sacrifice scheme.  

The division’s personal leasing offering has also grown, up 12% year-on-year and now covering over 43,000 vehicles.   

In the last few months, the business has also rebranded from Hitachi Capital Vehicle Solutions to Novuna Vehicle Solutions, following the merger in 2021 of its parent company, making it part of Mitsubishi HC Capital Inc.  

Jon Lawes, managing director at Novuna, said: “Over the course of the year, we have continued to carve out a reputation as sector leaders in decarbonisation and we are continuing to help drivers, businesses and fleets throughout their journey to electrification.  

“As leading proponents of zero-emission vehicles, we are developing our own proprietary end-to-end decarbonisation solution for fleets of all sizes, and our goal to electrify our entire car and small van fleet by 2030 remains firmly in reach.”