Iris system blossoms for rental vehicle brokers

The Leeds-based company, which underwent an 11m buyin management buyout two years ago this month, has built a successful and growing business on its online trading system.

The system allows Nexus to offer its business customers a guarantee that it can provide a car within two hours anywhere in the UK.

Iris, which was developed in-house, can quickly search through the company's large supply chain of providers for a suitable vehicle.

Nexus kept its guarantee throughout January when extreme weather conditions brought much of the country to a standstill.

"Most regular companies were sold out but we were able to keep going because we have such a big supply chain," said Neil McCrossan, the chief executive.

"We are the middle men. We add value in the middle."

Nexus has expanded its supply chain in the last two years to include more than 80 companies, including major rental firms and independent and specialist providers.

Its customers include a wide range of end-user businesses from major blue chips to SMEs to government departments.

The customer base grew significantly towards the end of 2008 when the company bought the vehicle rental management arm of Huddersfield-based FMG Support in a deal worth 4.4m.

The deal was backed by Isis Equity Partners, which supported the original buyout in February 2008.

Nexus is now gearing up for its next stage of growth and is looking to increase staff numbers from around 35 to 40.

Mr McCrossan told the Yorkshire Post: "We are keen to do acquisitions. One of the advantages is we are now by far the biggest at what we do. We are looking at new business areas and new products in the vehicle rental market."

This week, Nexus launched a new product – an online mileage allowance calculator, which allows users to work out environmental benefits and cost savings when comparing own-car usage versus a rental alternative when travelling on business.

Another new product is software which allows insurers and rental companies to keep track of important paperwork following claims.

Leadership team driving success

Nexus is led by a veteran of the rental vehicle industry and a high-flying economics graduate from Manchester University.

Neil McCrossan, who previously held senior posts at National Car Rental, said: "I have been in rental companies for 30 years and Iris is the best rental management system I have seen anywhere in the world which is why I bought the business with the private equity house."

He added: "The recession has been difficult but we have grown very well because we have been launching new products and winning new customers and adding new suppliers. It has not happened by accident."

Mr McCrossan praised the vision of operations director John Ellis, an economics graduate who joined the business shortly after its launch in 2000, for being the driving force behind Iris.