Peter Vardy mulls offloading FlexAuto amid wider restructuring

Peter Vardy Global is understood to be exploring options for its vehicle leasing division FlexAuto including a sale, just weeks after unveiling a £250,000 investment in new IT infrastructure.

FlexAuto, launched in 2022, offers a flexible, month-to-month vehicle leasing model aimed at business customers, with access to cars and vans under a single monthly payment, and no long-term commitment.

AM understands staff have been informed of the possible divestment of FlexAuto which has been positioned as part of the group’s ‘Mobility for Everyone’ strategy, offering stock from Peter Vardy’s 15 Scottish dealerships, which included brands such as BMW, Mini, Jaguar Land Rover, and Porsche.

The business division was initially led by group operations director Derek Longmuir, with Karl Howkins - former MD of Citroen UK and launch CEO of Sogo - appointed managing director in November.

The potential sale comes amid broader restructuring at Peter Vardy Group. The company reported a £10.93 million loss for 2023, a sharp contrast to the £4.8m profit posted the previous year.

Turnover fell 6.6% to £551.3m, driven by strategic changes including the closure of its Carz used car supermarket sites and a shift towards luxury brands.

The closure of the Carz sites which was triggered by a supply shortage of sub-five-year-old used cars following pandemic-era production stoppages cost the company £15m, according to its financial accounts.

In December 2024, it further streamlined operations by selling much of its franchised dealership business to Park’s Motor Group.

Despite this FlexAuto saw growth, with a fleet of 1,000 vehicles servicing around 75 SME businesses.

“This represents the first step in our plan to create a scalable business, which we expect will continue to require significant investment in FY 2024 as we prepare for exponential growth over the next five years. We also see strong potential for overseas franchising in this business,” said chief executive Peter Vardy.