Rivus Fleet Solutions, a Birmingham-based company, has been acquired by the Metropolitan Police Service following administration.
- The acquisition ensures the continuation of 165 jobs and services previously offered by Rivus Fleet Solutions.
- Rivus faced financial difficulties after losing a major client that contributed to 70% of its revenue.
- The firm executed a restructuring plan to address financial challenges, including closing 48 garages and securing a significant contract with the Met Police.
- Despite efforts, Rivus Fleet Solutions went into administration, but a rapid sale safeguarded its operations and workforce.
The recent acquisition of Rivus Fleet Solutions by the Metropolitan Police Service marks a pivotal moment for the Birmingham-based firm, which had recently faced significant financial turmoil. After entering administration, Rivus was swiftly purchased by its largest client, the Met Police, ensuring that its crucial services, as well as 165 jobs, would be preserved.
Rivus faced a challenging financial year, exacerbated by the loss of a major client in July 2023, which accounted for approximately 70% of the company’s revenue. This unforeseen loss necessitated a comprehensive restructuring of its light commercial vehicle operations, leading to the closure of 48 garages in an effort to cut down on labour and rental costs.
In the midst of these challenges, Rivus successfully negotiated a major fleet management contract with the Metropolitan Police in November, which came to represent 85% of Rivus’s business. Despite these strategic moves, the financial pressures proved insurmountable, leading the company to appoint joint administrators in June 2024.
A statement from the administrators detailed the transaction, indicating that the majority of Rivus’s assets were sold to the Metropolitan Police Service. This acquisition safeguards significant aspects of the operation and workforce, while ensuring the continuation of services critical to the Met Police.
Additionally, it was noted that Rivus’s sister company, Pullman Fleet Solutions Limited, remains unaffected by Rivus’s administration and sale. Pullman continues to operate as Rivus HGV, sustaining its business without disruption.
In the face of its recent challenges, Rivus Fleet Solutions had reported an increase in turnover, rising to £192 million for the year ending December 2022. This was accompanied by a more than doubled pre-tax profit of £4.8 million, illustrating a firm that was striving to improve its financial standing prior to the administration.
The acquisition by the Metropolitan Police Service not only preserves jobs but also ensures the continuity of essential fleet management services.
