Key points:
- VMS (Fleet Management) entered administration on 20 October 2026.
- The firm managed around 6,570 vehicles across the UK.
- No buyer was found, so the business is being wound down.
- 136 employees were made redundant, and 24 staff were kept to help the administrators.
- In its last accounts, the company had turnover of £70.3 million but paid £7.7 million in interest.
No buyer, controlled wind-down
Jeremy Karr, Simon Killick and Joanne Louise Hammond of BTG Begbies Traynor were appointed as administrators on 20 October. The appointment followed a winding-up petition from Barclays, which holds a floating charge over the company, and a separate petition from HMRC lodged on 9 September.
The administrators tried to sell the business as a going concern, but no viable buyer came forward. Karr told the trade press that they now “begin a controlled wind down of the business”.
According to the administrators, the company managed around 6,570 vehicles nationwide. In total, 136 employees were made redundant, while 24 stayed on to help with the administration.
What the accounts show
VMS (Fleet Management) has been trading since 2002. It provided vehicles on contract hire, along with maintenance and refrigeration services, and its customers reportedly included the retailer Iceland.
Its latest accounts, for the year ended 31 May 2025, show:
- turnover: £70.3 million (2024: £72.5 million),
- operating profit: £8.3 million (2024: £8.2 million),
- interest payable: £7.7 million (2024: £6.8 million),
- pre-tax profit: £0.7 million (2024: £1.4 million),
- net current liabilities: £24.3 million.
In other words, almost all of the operating profit went on interest. The directors explained that higher borrowing rates had increased the cost of hire purchase and finance lease agreements.
The fleet shrank by 8%, or 570 vehicles, during the year. The company spent £18.5 million on new vehicles, and the fleet’s book value stood at £118.4 million. Demand for contract hire remained steady but under pressure on margins, while the short-term rental business declined again.
Warning signs
The directors also warned that funding would remain a challenge “as key providers withdraw from the asset finance market”. Even so, they said the company had secured new and increased banking facilities.
The accounts also show that the company had contracted receivables from customers of more than £91 million, which are not shown on the balance sheet. According to the directors, if the amounts due within 12 months had been included, the company would have shown net current assets of £4.9 million instead of net liabilities. At the end of May 2025, net assets stood at £6.3 million, and the company paid £600,000 in dividends during the year (2024: £1.92 million).
Several directors resigned from the company in June 2026, according to Companies House filings.
What it means for customers
For fleet operators, including hauliers and retailers with refrigerated vehicles, the collapse means finding new contract hire and maintenance agreements at short notice. Customers should contact the administrators about their vehicles and contracts.
The case shows how rising interest costs are squeezing asset-heavy businesses in UK transport. As trans.info has reported, insolvencies are also putting healthy logistics companies at risk, while UK hauliers are bracing for a wave of collapses.
