Exclusive: FMG looks for fresh private equity backers

The fast-growing company saw turnover rise to 75m last year following major contract wins with the Highways Agency and Lloyds TSB Autolease.

Managing director Mark Scanlon said Spirit Capital, the private equity house which invested 7m in a partial management buyout in early 2008, is "happy to take its money now" as the company gears up for the next phase of growth.

He said FMG Support is targeting expansion in the massive insurance market – among other areas – and plans to build a new 10m headquarters to consolidate its operations and 420 staff in Huddersfield.

Mr Scanlon said: "We want to embark on a significant project and we want to have people alongside who can fuel our growth."

The company has appointed the Leeds office of KPMG to advise on the investment process, which has resulted in a number of expressions of interest from potential new backers.

The company wants investors which can give it "energy and firepower" in new areas, including the insurance industry, said the MD.

He added: "We have a competitive advantage on entering the insurance market. Insurance is adjacant to our incident management business and it is a big market.

"What we can offer our customers in fleet, we can offer to insurance in the wider market, which is 10 times bigger."

Chief executive Nick Brown, who took full control of the business in 2001, has transformed the firm over the last decade into a leading player in the fleet accident management market.

He now owns 40 per cent of the business.

A partial management buyout took place in early 2008 which saw Spirit Capital take a 40 per cent stake. The management team holds the remaining 20 per cent.

The company has invested millions of pounds into developing its own IT systems which are used as the platform for strong customer service, added Mr Scanlon.

He said the company works very hard to foster good relations with its employees, which "translates directly into bottom line improvement for us".

FMG Support's fast growth has been propelled by some major contracts over the last two years.

Mr Scanlon said: "In 2008 and 2009 the whole world went into tilt. There was a reduction in activity in business at large. We saw a reduction – there were less accidents and less miles driven.

"But because we have had contract wins and because we run the business professionally, we have had growth on the bottom line."

Turnover for the year ending September 30 2009 was around 75m, with earnings before depreciation interest, tax and amortisation of 4.6m.

Last September, the company won a contract to handle accident management for almost 9,000 vehicles for ING Car Lease.

A year ago, the company won a three-year contract to provide accident management for Lloyds TSB Autolease, one of the UK's largest fleet funding and management companies.

The Highways Agency appointed FMG Support as the first ever National Vehicle Recovery Manager in October 2008.

The three-year contract gives the company responsibility for recovering vehicles following abandonments, breakdowns and crashes on 5,000 miles of roads across England.

Snowstorms blow in work

FMG Support experienced one of its busiest ever periods as snow brought treacherous conditions to the country's road network.

The company had planned for 1,200 calls on the busiest day – but it received 2,500 in a record level of demand.

All employees managed to make it to work, said Mark Scanlon, the managing director, including one man who walked five miles from his snowed-in home.

Those with 4x4s, including Mr Scanlon, operated a taxi service for staff who couldn't drive to work.

"We had a full complement of staff. This is where employee engagement comes back to pay you," said the MD.