Municipal Hire Services, founded in 1840, had a fleet of only 245 vehicles in 1998 but after the management staged a buyout, backed by venture-capital firm 3i, it now hires out more than 3,500 vehicles for periods up to 15 years.
The performance has earned it 67th position in the Sunday Times PriceWaterhouseCoopers Profit Track 100 league. The league ranks the UK's fastest growing medium-sized companies by profit growth. MHS profits increased by 42.6% a year, from 2 million in 1998 to 5.8 million in 2001. The company was one of only 25 companies to make the list for two years in a row.
Ian Handley, managing director of MHS, said the company is pleased to receive the recognition and plans to continue its dramatic profit increases. He said: “MHS has ambitious plans for further growth, but ultimately, our position among the best performing business in the UK is a testament to the hard work and dedication of staff.”
About 80% of the company's customers are local authorities. MHS has recently successfully gained contracts, both “Best Value and private-public-partnerships, with the borough and district councils of Weymouth and Portland, North Cornwall, South Cambridgeshire and Tewkesbury.
Mr Handley said: “Our high service standards have earned us an unparalleled reputation as a customer-focused operator in the municipal sector. This has led to a surge in enquires and a host of major new contract wins, including the first large-scale recycling contract for MHS' new refuse division with Lichfield district council, which is now used by other local authorities as a model to their recycling collection programmes on.”
MHS was the only company in its sector in the list and the sixth fastest growing company in the south west. It profits are forecast to increase further this year.
European Metal Recyclers, EMR, also made the list. They were ranked 37th, with a profit increase of 57% a year, from 7.3m in 1998 to 28.2m in 2001.
Subscribe for free