Salford’s Italian job revs sales to record high

SALFORD Van Hire, the family-owned car, van and truck hire group, has reported record financial figures on the back of continuing growth in Italy.

The business, which trades in the UK in Manchester and Leeds, was founded with one vehicle in 1965 by Italian Raffaello Bacci, who moved to Salford in the post-war years.

Mr Bacci and his daughters and son in law still run the business today. Based behind Manchester’s Strangeways Prison, Salford Van Hire employs nearly 200 people and has a fleet of around 7,000 vehicles.

In 2011 the Italian business based in Florence, Program Autonoleggio, saw sales grow 22% to £13.7m, compared with more modest UK growth of 1% to £45.3m.

Group turnover was up 4% to £58.6m and pre-tax profits by the same amount to £2.9m.  

Interest payable rose from £2.4m to £2.6m despite net debt falling from £67.7m to £61.8m.

In their business review Salford’s directors explained: “Finance charges increased by 8% despite the continued reduction in group net debt. This was due to an increase in the interest rates charged on the debt as a consequence of adopting a policy of taking out more fixed-rate finance agreements compared to variable rate agreements.

“This however gives the group more certainty over future interest payments.”

Looking forward it said it would continue to expand the Italian operation in the coming year, and that turnover will grow at a “steady rate”.