Wilsons Auctions gets deal to help Royal Mail sell vans

Post by **TrueBlueTerrier** » 07 Dec 2016, 12:44

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Northern Ireland firm Wilsons Auctions has won a UK-wide deal with Royal Mail to help dispose of its vehicles. The Mallusk-based family firm will be remarketing and selling unwanted motors from the fleet across the UK.

It will also store the vehicles ahead of an auction taking place.

It's the company's thirteenth contract win so far this year.

The value of the latest, two-year deal has not been disclosed, but it is understood to be a multimillion-pound contract.

Wilsons Auctions, which recently marked its 80th birthday, processes around £250m worth of goods every year through its auctions.

The company has a large number of UK-wide contracts, including a multi-agency arrangement for the sale of assets seized by police forces around the UK, including South Wales Police, Gwent Police, Dyfed Powys Police, the PSNI and the Northern Ireland Environment Agency.

Peter Johnston, Wilsons Auctions group operations director, said: "Wilsons Auctions is delighted to be working with Royal Mail, assisting with the disposal of its vehicles which will be supported by our branches across the UK.

"We have had a very successful year so far, winning a significant number of contracts, and are proud to work with a number of agencies in the asset recovery and disposal of items across the UK and Ireland.

"In recent months we have returned in excess of £80m to the public purse and have an enviable reputation for maximising asset realisation while minimising costs, making the asset recovery process as stress-free as possible for our clients."

The company collects, values, stores, remarkets and auctions off assets for its clients.

It also uses the online auction facility, LiveBid, which opens up its business and products to a world-wide audience.

Wilsons has premises in Belfast, Portadown and Dublin, as well as locations in Great Britain including Dalry, Telford, Queensferry, Newcastle-Upon-Tyne and Maidstone.

It holds a large number of auctions to dispose of the proceeds of crime, ranging from helicopters to jewellery and PCs.

Wilsons currently employs 325 people across the UK and Ireland after starting out 80 years ago with just 12 staff.

Earlier this year, the company bought auction businesses in Newcastle-Upon-Tyne and Maidstone in Kent, where it purchased premises which formerly belonged to surveyors Lambert and Foster.

Its site in Dalry, outside Glasgow, was the business's first opening in Great Britain.

The firm recently opened an office in Spain for the sale of international property for government clients.

Wilsons was formed in 1936 by William J Wilson. It is now directed by his son, Ian. Turnover at the company last year was £11.1m, up from £10.9m in 2014. Pre-tax profits, meanwhile, more than doubled from £292,827 to £768,023.

Police work aside, the core of the business remains its regular vehicle auctions.

It sells off vehicles on behalf of car giant Lookers plc and its subsidiary, Charles Hurst, in Northern Ireland.

Nigel1505 · Post by **Nigel1505** » 07 Dec 2016, 15:32

That's fantastic news............. Please start with the Combo's.

Post by **Lounge Lizard** » 07 Dec 2016, 19:25

What we are not told is how much Royal Mail pays Northern Ireland firm Wilsons Auctions to take the clapped out old combos off their hands.

rubberbond · Post by **rubberbond** » 09 Dec 2016, 17:10

I was under the impression all these vans were leased. Obviously not.

rubberbond · Post by **rubberbond** » 09 Dec 2016, 17:12

Lounge Lizard wrote:What we are not told is how much Royal Mail pays Northern Ireland firm Wilsons Auctions to take the clapped out old combos off their hands.

By the time we've finished with them, they won't be worth anything.

The_Wax_Man · Post by **The_Wax_Man** » 09 Dec 2016, 22:16

rubberbond wrote:I was under the impression all these vans were leased. Obviously not.

They are on a finance lease agreement I'd imagine.

RM agrees to purchase at negotiated cost with manufacturer.

Finance company is then involved to finance the cost - i.e leased back to RM

Lease works on a timescale with monthly depreciation cost i.e 5 years.

After a set period of time, the vans are fully depreciated and have zero costs on them. ( Although Maintenance and servicing costs increase on older vehicles) - At that point if RM decide to sell, then if even for £1, its a profit.

The way of lease buyback purchase is so that RM can run the fleet without have the asset cost on the Balance sheet. All maintenance, tyes etc and servicing costs are also placed on a monthly depreciation cost.

Its the main reason why vans cannot just be added to the fleet at peak times, its normally an annual fleet churn and planned acquisition process dependent on future business growth.

:)

datasaint · Post by **datasaint** » 10 Dec 2016, 20:10

The_Wax_Man wrote: Its the main reason why vans cannot just be added to the fleet at peak times, its normally an annual fleet churn and planned acquisition process dependent on future business growth.

:)

Can you explain why we have around fifteen 66 plate vans sat at our MC doing nothing but fleet won't authorise them for use at local DOs that need them at xmas?

The_Wax_Man · Post by **The_Wax_Man** » 11 Dec 2016, 00:03

norm wrote:
The_Wax_Man wrote: Its the main reason why vans cannot just be added to the fleet at peak times, its normally an annual fleet churn and planned acquisition process dependent on future business growth.

:)
Can you explain why we have around fifteen 66 plate vans sat at our MC doing nothing but fleet won't authorise them for use at local DOs that need them at xmas?

On an assumption based upon how negotiated, volume fleet purchases work

In order for RM to achieve the purchase contract with the manufacturer, a monthly acquisition plan gets put into place. - If RM don't take the vans, as per volume agreement, each month then potentially they could negate on the contract and affect the discount % pre agreed.

It could be that the vans are in place ready to replace exsiting ones on the fleet that have yet to run a course - it could be RM has something special lined up for them - Or it could be that 'fleet' are not very good at monitoring fleet locations, geographics, stock whereabouts, M.I.D inclusions or even understanding DO utilisation - It could be a hundred reasons.

But if they don't take the vans, at the time they say, it could be breach of contract with the vehicle manufacturer. - Its RM's decision whether to use or not the immediate time they are placed into the fleet network.