YORKSHIRE-based FMG has secured new business following its acquisition by the accident management and legal services group Redde.
Redde agreed to buy the fleet accident management group FMG for around £43.2m earlier this year.
The FMG Group, which is based in Huddersfield, was acquired from its management and a number of funds managed by Leeds-based Endless.
Yesterday, the board of Redde announced that the group’s strong start to the year had continued into December, with increasing trading volumes.
In a statement, Redde said: “The board is also pleased to note that the FMG group has traded well since acquisition, with a good pipeline of new business opportunities.
“As a result of these factors, trading profits for the six months to December 31, 2015 are now likely to exceed our earlier expectations and will be materially ahead of the corresponding period last year.”
Martin Ward, the chief executive of Redde, said: “The successively strong performances of the group delivered under our growth, profitability and sustainability strategy is generating good returns for our shareholders.
“The acquisition of FMG, which completed in October 2015, has enabled us to broaden our reach into new and related markets and diversify our earnings. The outlook for the remainder of the financial year is positive and we continue to examine opportunities to augment our sustainable growth plan.”
FMG was established in 1986 in Huddersfield, and it remains one of the major private employers in the town.
FMG, which employs around 290 staff, specialises in providing outsourced incident management services for a range of clients, including insurance companies, corporates with large car fleets and vehicle-leasing companies.
It also provides specialist roadside recovery services for the Highways Agency along with a number of police forces and local councils.
Earlier this week, FMG was awarded a “significant” vehicle recovery contract by North Wales Police. The contract, which starts in January 2016, also includes Lancashire Constabulary, Cumbria Constabulary and Lincolnshire Police, and has been awarded for an initial three-year period with the option to extend up to a maximum of five years.
FMG will take responsibility for managing the recovery, storage and disposal of vehicles that have been abandoned, stolen, involved in collisions, or crime, and the recovery and roadside repair of police vehicles.
According to FMG, this will amount to around 22,000 new recovery requests per year for the company, which is continuing its “strong organic growth” in the incident management marketplace.