Edwards Coaches boosts fleet following job saving acquisition

Pontypridd-based Edwards Coaches has utilised a £1.3 million hire purchase facility from Lloyds TSB Commercial Finance to purchase nine new coaches.

The business, which has been a Lloyds TSB Commercial Finance customer for 15 years, has secured this latest round of funding after buying Swansea-based coach business Diamonds Holidays out of administration.

Edwards Coaches, a family run firm which was established in 1925, currently employs 240 people and has a 140-strong fleet of coaches. The company will operate Diamond Holidays alongside its existing business, with 8 employees retained in the Swansea office.

To service its expanded customer base, Edwards Coaches found it required an increased number of vehicles.

The business approached its long-term funding partner, Lloyds TSB Commercial Finance, which provided a £1.3 million hire purchase facility to fund this outlay.

This enabled the firm to buy nine Diamond-branded coaches. The hire purchase’s scheduled payments simplify cash flow forecasting and ensure that the outright purchase of expensive vehicles does not put pressure on the business’ liquidity.

Jason Edwards, commercial director and the fifth generation of the family to head up the firm, said: “We have always concentrated on evolving and expanding the company, so when the opportunity arose to purchase Diamond, we were keen to progress.

“As a result of the acquisition, we have expanded further into Swansea and our customer base, some of which overlapped with Diamond Holidays, has also dramatically increased.

“Our turnover also rocketed by over 50 per cent in two weeks and we needed a funding facility to purchase the new coaches without paying cash up front.

“We have used hire purchase from Lloyds TSB Commercial Finance in the past to fund vehicles and the facility is ideal for us as it means we can invest in top of the line coaches without committing working capital which would impact our cash flow.

“We are now putting in place our plans for next year and we expect to see a massive influx of tourism ahead of 2012. We are therefore stepping up our marketing efforts to capitalise on this increased demand.”

Lesley Williams, regional manager at Lloyds TSB Commercial Finance, said: “We have worked with Edwards since 1996 and it is great to see a family-run business with such heritage go from strength to strength.

“The acquisition of Diamonds has allowed Jason and the team to extend their reach across West Wales and ensured that Diamonds’ workforce was retained.

“In the transport market, it is essential for companies to keep on top of technological advances and maintain an up-to-date fleet of vehicles. Hire purchase has been intrinsic to Edwards Coaches’ growth and allowed it to purchase new coaches as and when required.”