Addison Lee returns to profitability for first time since 2020 takeover
Addison Lee announced today it has returned to profitability for the first time since its March 2020 takeover.
In the financial year ending 31 August, the London-based private taxi provider achieved an adjusted EBITDA of £7.9m on a £164m turnover.
Following the end of travel restrictions in the UK, the firm reported a 47 per cent increase in passenger revenues, while earnings before interest and tax went up 53 per cent compared with February 2021.
For the January – March period, passenger car volumes were up by 29 per cent year-on-year, while revenue hiked by 70 per cent.
“By focussing on our core strengths, our expert management team have successfully managed to offset the difficult financial situation that we inherited in 2020, all while launching new initiatives to support Londoners and keep the capital moving during the pandemic,” said Addison Lee’s chief executive Liam Griffin.
“And with travel now returning to levels seen in 2019, we are confident that this is the start of a return to significant growth for the business.”
Addison Lee over the last couple of years faced a series of challenges, including being saved from collapse by a group of eight banks after its owner of seven years struggled to sell it.
The bank’s consortium vowed to inject £45m investment into the company, refinancing £100m of Addison Lee’s £250m debt.
The owners reinstated Liam Griffin, the son of Addison Lee’s founder John Griffin, as chief executive.
To ensure the company could go back to being profitable, Addison Lee focused on prioritising London operations, dropping loss-making international businesses and investing on its workforce and new ventures.
To retain its existing workforce and attract new recruits, the group introduced benefits such as sick pay and maternity leave, guaranteeing £5,000 gross for the first month of work.
In June Addison Lee signed a contract with black cab taxi service ComCab, becoming London’s largest operator, while also announcing its plan to become carbon-neutral by the end of next year.
“Since we’ve come back into the business, we’ve doubled down on our commitment to our drivers, and with the continuing support from our investors and several new ventures underway, there’s much more to come,” Griffin continued.
“We are confident that as London gets back on its feet, we’ll continue to grow and be here to support the city that we love and have called home for over 45 years.”