The forecast increase in based mainly on the extension of the company's client portfolio and a rise in the number of cars managed (now about 2,500). FBS reported a 130 percent rise in business in the first half of the year (H1)compared to H1 2006. "One year since the company's establishment - Q1 of 2006 - FMS began registering profits. Furthermore, the value of EBITDA [Earnings before Taxes, Depreciation and Amortization] reported for this year is 85 percent higher than last year," added Ivan. Fleet management activities represent 70 percent of total business, with long-term car rental representing making up the remaining 30 percent.
FMS investments for 2007, exceeding €100,000, include xopening three or four new offices in cities such as Constanta, Galati, Oradea and Craiova, employee training, and upgrading software applications (enterprise resource planning and electronic archive). By mid-2007 FMS debts amounted to some €1.5 million.
Fleet Management Services is the first professional car fleet management service provider on the Romanian market, and its main competitor is ALD Automotive, which manages 2,000 vehicles. Other players are Porsche Mobility, Sixt New Kopel, Dirent and Arval.
The Eastern Europe car fleet management outsourcing market is still young and services available in the sector are little known and viewed with some suspicion. "In Romania and neighboring countries, managers tend to handle all the company's activities to the detriment of the business. Elsewhere in Europe, companies rid themselves of ancillary activities, commissioning specialized service providers," explained Ivan. FMS services cover all aspects of vehicle management, from acquisition, funding, maintenance, and accident management to vehicle rental and the resale of used vehicles.
