Wales’s largest independent accident repair business is on the road to major expansion following a £600,000 investment.
The Business Plan for Cardiff-based 1St Choice Accident Repair Centre predicts turnover growing from the present £5 million to £8 million, and the workforce increasing by a third to more than 50.
The investment, a mix of equity and debt, is from Tata Steel subsidiary UKSE, and has enabled a transformation of the company’s management and ownership structures as it consolidates its strong market position in Wales working for insurers, OEMs and private clients.
1St Choice Director Matt Willecome says growth will come from new clients including one of the UK’s largest leasing firms, as well as a leading Japanese car manufacturer. The expanding electric vehicle sector is another area that 1st Choice is targeting for new business.
“We are finding fresh markets and new clients which will drive our growth, and expect that a significant part of this will be from electric vehicles. As we increase activity we will of course be keeping a very close eye on costs, which, everyone knows, are a huge issue across all sectors in the UK these days,” he said.
The firm’s second MBO in eight years sees a larger Board designed to bring fresh ideas and approaches, as well as a revised shareholding. Executive Chairman Mervyn Ham describes the new arrangements as innovative and bold. “This is a hybrid deal which seeks to combine the best features of employee ownership with commercial equity,” he said.
“I am confident it is the best structure to deliver growth as well as value and we are excited to have our new equity partner, UKSE, on board and are looking forward to partnering with them to deliver our ambitious Business Plan.”
Investment and skills training in this demanding industry are a high priority for the new Board. New spray booth technology has boosted efficiency and is helping reduce the carbon footprint. “We have an excellent record of 94% customer satisfaction rating in feedback from our clients and we are extremely proud of this,” added Mr Willecome.
UKSE Area Manager in Wales Michelle Noble said she was delighted to have been able to support this MBO. “The new Board and ownership structure is the ideal platform for growth and creation of skilled jobs and we have every confidence that 1St Choice will achieve its goals. The firm is the largest of its kind in Wales and in the top 20 in the UK, and clearly has enormous potential.
“UKSE is keen to promote the benefits of equity investment as an efficient way of speeding up expansion plans, and we pride ourselves on being flexible and supportive partners. “
