ASSET FINANCE 50 March 2016 Sponsored by Published by CHP CONSULTING CHP Consulting has been delivering systems and user interface, easy deployment and transactional consultancy services to the global asset finance industry transparency. currently serving since 1990. We know that no one project is like another. Gaining a 5 of the top 10 Our best practice methodologies and specialised knowledge competitive advantage in the modern marketplace demands of asset finance mean that we deliver the largest system fresh innovation every time. We work to understand in the AF50 implementations and most complex business change your business completely, then align our implementation projects. With an excellent delivery history over our 26 years methodology with your business practices. We work with you in the industry, CHP’s track record is unrivalled. to shape the solution that fills all the gaps. ALFA Systems, our class-leading software solution, is Our people are only the most talented graduates and used by many of the world’s top equipment finance and professionals. All our consultants operate in all areas of the automotive finance companies for full-lifecycle management business, from preliminary client contact and requirements of portfolios, ranging from the most complex structured definition right through to manning the support desk. This loans to high-volume flow transactions. ALFA is a fully ensures all our staff develop and maintain excellent all-round scalable, enterprise-wide solution that provides end-to-end expertise. integration and workflow automation. Setting the standard With over 40 clients in 18 countries, CHP has offices in for operational excellence, ALFA makes next-generation London, Paris, Detroit, and Sydney. For more information, technologies available today; with an intuitive, web-based visit chpconsulting.com. ACKNOWLEDGEMENTS Data and table compilation: Julian Rose, founder, Asset Finance Policy Viewpoint contributors: George Ashworth, Director of SME, Virgin Money; John Bennett, independent leasing consultant; Carl D’Ammassa, Group Managing Director – Business Finance at Aldermore; Mike Randall, Chief Executive Officer, Close Brothers Asset Finance; Lindsay Town, Chief Executive, IAA-Advisory; Gavin Wraith-Carter, General Manager, Hitachi Capital Business Finance. ASSET FINANCE INTERNATIONAL The Definitive Platform for Asset Finance Publisher: Edward Peck 39 Manor Way, Editor: Brian Rogerson London SE3 9XG ALFA Systems from CHP Consulting Author: Nigel Carn UNITED KINGDOM Asset Finance International Ltd. Telephone: +44 (0) 207 617 7830 http://www.assetfinanceinternational.com ALFA Systems is the software platform of choice for © Asset Finance International, 2016, All rights reserved No part of this publication may be reproduced or used in any form leading asset finance providers worldwide. or by any means – graphic; electronic; or mechanical, including photocopying, recording, taping or information storage and retrieval systems – without the written permission from the publishers. ALFA is 100% web-based, features full end-to-end support, and is able to handle the most demanding of operations. Whatever type of equipment you finance, ALFA will take your business to the next level. www.chpconsulting.com/alfa 20160302_CHP_AF50_FullPg_210x297mm.indd 1 02/03/2016 16:08 4 ASSET FINANCE 50 MARCH 2016 ASSET FINANCE 50 MARCH 2016 5 Contents Foreword Foreword 5 Welcome to Asset Finance 50. It’s my great pleasure to sponsor this important piece of research from Asset Finance International Introduction 7 and Asset Finance Policy, which not only fills a key informational gap but also represents an opportunity to celebrate the Who’s in and who’s out 8 importance of our industry to the UK economy. How we measure firm size 8 Alongside the all-important rankings, we are given some insight Limitations 9 and context by a number of the leading lights of the industry – such as Gavin Wraith-Carter, Lindsay Town and John Bennett – Asset Finance 50 (Banking groups version) 10 as well as some revealing analysis from the publishers. Key results (Banking groups version) 12 We are all keen to promote asset finance, both within our own organisations and to external investors, while those outside the Top 10Competitive lessors (Bankingasset finance groups operators version) are 12 Competitive asset finance operators are constantly innovating, delivering more value industry want to better understand the market and its importance. constantly innovating, delivering more value Viewpointto customers The andcontinuing using fewer dominance resources. of the major banks 13 By setting out who the key players are, Asset Finance 50 helps to customers and using fewer resources. everyone to do just that. Achieve More ‘Non-legacy’CHP’s ALFA leasing Systems enables forward-thinking 15 Achieve More CHP’s ALFA Systems enables forward-thinking businesses to meet and exceed the most businesses to meet and exceed the most with ALFA Systems. Assetdemanding Finance of challenges. 50 (Bank subsidiaries version) 16 with ALFA Systems. demanding of challenges. Key results (Bank subsidiaries version) 18 THE RIGHT FIRST TIME SERIES THE RIGHT FIRST TIME SERIES How to Transform an Asset Finance Company ThroughTop Systems 10 lessors Implementation (Bank subsidiaries version) 18 How to Transform an Asset Finance Company Through Systems Implementation Download the series today from chpconsulting.com/rft Download the series today from chpconsulting.com/rft VIEWPOINT Growth sectors and individual success stories 19 Fleet lessors 20 Top five fleet operators 21 Manufacturer lessors 21 Top five manufacturer lessors 21 ANDREW DENTON Chief Operating Officer VIEWPOINT Changing industry dynamics 22 CHP Consulting Breakdown of the market by type of lender 24 AF50 Banks vs Non-Banks 24 Ten at the top 24 ‘Up and coming’ firms likely to be in the table next year 24 Viewpoint Market evolution and the future composition of the AF50 25 Your input 26 from from The definitive platform for asset finance. The definitive platform for asset finance. CHP Consulting CHP Consulting www.chpconsulting.com Powerful systems, latest technology, assured delivery. www.chpconsulting.com Powerful systems, latest technology, assured delivery. ASSET FINANCE 50 MARCH 2016 7 Competitive asset finance operators are constantly innovating, delivering more value Introduction to customers and using fewer resources. Achieve More CHP’s ALFA Systems enables forward-thinking businesses to meet and exceed the most Welcome to the first edition of the Asset Finance 50 (AF50) with ALFA Systems. demanding of challenges. rankings survey published by Asset Finance Policy and Asset Finance International. THE RIGHT FIRST TIME SERIES The AF50 is intended to become the UK’s primary annual survey How to Transform an Asset Finance Company Through Systems Implementation of business equipment and fleet lessors. Download the series today from chpconsulting.com/rft The survey is based on audited and publicly available accounts to ensure it is compliant with competition law and regulations. We have used the latest information filed online as at February 2016. As far as we know this is the first reliable asset finance industry ranking survey since the 1997 publication, Equipment Leasing in the UK. It is important to use the data with care. There are inevitably limitations to the survey and we list all those we are aware of. We will update the tables online if any errors or omissions are pointed out to us. from The definitive platform for asset finance. CHP Consulting www.chpconsulting.com Powerful systems, latest technology, assured delivery. 8 ASSET FINANCE 50 MARCH 2016 ASSET FINANCE 50 MARCH 2016 9 Who’s in and who’s out Limitations We aim to include the top 50 UK business equipment and fleet Considerable effort has been made to ensure the accuracy of the lessors, based on their accounts that are filed at Companies rankings, but some problems are inevitable, particularly in the first House. Some firms are missing: edition. Possible issues include: llNew entrants may not yet have filed any accounts (see ‘Up and llDifferent lessors have different accounting year-ends and coming’ box). some may be late in filing data at Companies House. For most lessors, this edition is based on the year to December 2014. llSome automotive lessors (for example Ford Credit, Volkswagen Financial Services) show combined figures for consumer and However, the year-ends used actually range from December business finance, so we’ve been unable to include them as we 2013 (in one case only) to March 2015. have no basis for making a simple estimate. llLessors reporting under international accounting standards show the discounted value of their finance lease receivables. llSome lessors (for example HP and Dell) don’t publish separate UK accounts for their financial services arms. Those reporting under UK rules show the undiscounted value. We have not attempted to adjust for this or for other differences llWe may also have completely missed lessors unintentionally between IFRS and UK GAAP. andCompetitive we’d beasset happy finance tooperators hear are from such firms and add them to Competitive asset finance operators are theconstantly tables. innovating, delivering more value llSome lessors might have securitised parts of their leasing constantly innovating, delivering more value to customers and using fewer resources. books, possibly resulting in the receivables no longer to customers and using fewer resources. appearing on their balance sheet (although we