AAM Group grows turnover, repositions itself to cash positive and grows Car Subscription business
AAM Group’s car subscription company, Mycardirect, celebrates 2 year anniversary
AAM Group sales up 46% year on year
AAM Group subscription company profitability targets achieved 18 months ahead of schedule
Conceived during lock-down in March 2020 and born out of an in-depth knowledge of the sector through supplying the major players in the market, AAM Group’s car subscription business, Mycardirect, officially launched In September 2020. The success of the fledgling subscription company has been nothing short of remarkable and has proven vindication for the group’s decision to invest £6.5m in the project. As the business celebrates its two year anniversary, it is now profitable on a monthly basis, cash generative, and has robust systems and infrastructure. In addition, it has a strong and dedicated team that has expertise in putting the customer first.
Such has been the success that the car subscription company achieved profitability 18 months ahead of schedule, and business for both Mycardirect and the AAM Group as a whole has gone from strength to strength. The Mycardirect brand, along with the group’s other brands of Onwrd and BestCarFInder saw total sales increase by 46% to £23m in the 12 months to June 2022.
AAM Group Chairman, David Murray-Hundley, commented “Mycardirect has done a great team job as part of the revenue increase for AAM Group this year. This is particularly pleasing in a time of challenging new vehicle supply issues and a cost of living crisis which is putting pressure on consumers and businesses. We continue to focus on costs, customer service and the customer journey. I am proud of the whole team, who, collectively, have put the group into profit. Our focus must be to remain cash positive at a time when all businesses are experiencing challenges in the current economic climate. Mycardirect has grown significantly and we have also seen steady growth from group brands, Onwrd and BestCarFinder. After a challenging 2019 & 2020, we can look ahead with confidence and continue to invest in the business, in particular more digitalisation of the business and customer experience, while also using that digitalisation to create operational efficiencies and bring growth for our shareholders. I particularly want to call out the group board, Colin Mather, Natalie Bishop and Founder, Jeremy Lavallin, who have steered AAM through some very big challenges. What is clear is we have an amazing, loyal team in our business and we need to continue investment in them. Moving forward we will be looking to grow via further investment but at the same time making sure the group is facing less risk with world market challenges”
Speaking on the eve of the two year anniversary, Mycardirect CEO, Duncan Chumley said “I am very proud of what has been achieved in turning a start up company into a profitable business within 18 months. Mycardirect’s car subscription product appeals to both retail and business customers and that goes to the heart of our success. The flexibility we offer gives individuals and companies the confidence and peace of mind to choose a vehicle, safe in the knowledge that if circumstances change, they can switch vehicles or reduce, extend or cancel the contract to suit. I am confident that this excellent proposition will herald further growth over the next two years”.
With a fleet of over 3,000 vehicles available for subscription, EV growth has undoubtedly driven the business and the car subscription flexibility has given customers the confidence to choose an EV for the first time; so much so that EVs, including hybrids, now make up nearly 40% of the AAM Group fleet.
Looking ahead, AAM Group COO, Colin Mather said “the last two years have been hugely rewarding. The Board’s decision to put the group’s resources behind the Mycardirect investment and assist Duncan to develop such an effective team over such a short time has been well justified, but we have ambitious plans for further growth; growth that will see us actively developing the group’s Onwrd and BestCarFinder brands alongside the Mycardirect business. By leveraging technology and digitalisation across the whole group we can further enhance the customer experience and streamline the operations side of the business. We will also invest further in the backend of the business and in our amazing team, to improve operational efficiencies. In addition, we will continue to develop aftersales to add revenue streams and deliver a world class service to our customers. There are exciting times ahead”.
AAM Group(Previously Alliance Asset Management group). Established in 1997, AAM Group is a leading provider of bespoke MaaS, working with Car Subscription, Car Club, Accident Management and vehicle rental companies. Mycardirect Limited, was founded in 2020 to simplify people’s lives with an easier alternative to the expense of short-term rental, commitment of long-term leasing, and the complexity of car ownership. AAM Group secured backing from Pario Ventures.