1. Rocialle Inhealth Limited
Problem
Rocialle deliver medical equipment to NHS hospitals and also into the private sector.
Deliveries are time critical and vehicle downtime is disastrous to the business, the
surgeon and the patient! They have grown organically and this put a strain on the
transport function. They needed to focus on core activity and were looking to outsource.
Step 1 – Having reviewed the fleet, numbering 28 vehicles weighted from 3500kg vans
to 32,000kg tractors I proposed that Alltruck immediately assume the maintenance
responsibility and ownership of the fleet by way of a sale and leaseback arrangement.
Vehicles were aged between 2 to 6 years old. This would release £900k tied up in
vehicles and deliver immediate benefits in terms of service back up.
Step 2 – Current Book Values were obtained from Rocialle and agreement was reached
to purchase all vehicles so a “tax neutral” position was achieved.
Step 3 – Takeover inspections were completed and two solutions were proposed. 1.
Very old vehicles to be replaced with rental vehicles. 2. Newer vehicles to be run on until
replacement were due. Any defects uncovered during the inspections would be repaired
by Alltruck, capitalized and amortized over the remaining lease period.
Step 4 – All three Rocialle locations, Sheffield, Sawston and Mountain Ash were visited
to establish a revised specification for new vehicles to replace the rental vehicles
supplied for the older units.
Step 5 – Local repair agents were visited and terms agreed to service Rocialle vehicles
on Alltruck’s behalf. Existing relationships were allowed to continue where appropriate.
Step 6 – An invoice was raised and funds released and title transferred to Alltruck. 28
vehicles were taken over at once and orders for 5 new vehicles were secured to replace
the older vehicles. In addition I was able to supply 4 trailers on a long term rental basis in
Mountain Ash.
This solution was not based on a desire to raise cash, but a need to improve efficiency
with immediate effect. It was a innovative solution and not previously considered by
Rocialle. In view of the variety of vehicles and their age and repair needs, and varying
specifications, price was never an issue. Added value income was also secured through
digital tachograph training, O license auditing and trailer rental income.