Whitehouse Group & Genesis Capital

The Whitehouse Group is one of the largest privately owned dealer groups in the UK and has been operating in South East London and Kent for over 30 years. In the last 8 years revenues have grown from £50m to £350m and the company now owns over thirty sites, mainly specialising in prestige marques. With over 1,000 employees, the group aims to sell over 20,000 new and used vehicles this year.

Whilst the Whitehouse Group has achieved significant growth, the motor industry has also seen increased competition over the last few years. With new car retailing rules and increasing numbers of on-line importers and car supermarkets, vehicle margins have been under pressure across the UK. Greater competition has forced manufacturers and retailers alike to devise creative strategies to stay ahead of the market. The Whitehouse Group believes it can gain competitive advantage through cutting-edge technology and has chosen Genesis Capital to finance the upgrade of its Kerridge Autoline DMS. The Whitehouse Group initially approached other potential financing partners, but felt that Genesis Capital offered the best facility, structure and pricing. "We found Genesis Capital listened to our specific needs and responded accordingly", said Mike Smith, Whitehouse Group's finance director. Genesis Capital has agreed to provide over £750K in financing for them to upgrade and expand their current systems, with the goal of improving management information and customer service across the group.

The Whitehouse Group views its IT strategy as a rolling investment. The company firmly believes that state-of-the-art technology is key to enhancing employee productivity. "We recognised as far back as 1995 that our growth requirements could only be met if we employed a standard DMS across all operations. Kerridge was selected after a great deal of research, mainly because it is a marketing-driven system and is the recognised market leader. All dealerships, except BMW, were upgraded before year 2000 and we expect to complete the BMW upgrade by the end of this year. Kerridge provides us with the real-time daily management information we require. Working with Genesis Capital will help us to continue to expand our business. Our relationship with Genesis Capital enables us to get what we want when we want it, not when market conditions dictate. Kerridge products and services are paid for as they are used - rather than at the outset when up-front costs can be high and returns low", said Mike Smith.

The benefits of the Genesis Capital arrangement go beyond the DMS upgrade. "This deal gives us the financing to continue the development of the business - such as opening and refurbishing sites instead of tying up money in short life assets", explained Mike Smith. The Whitehouse Group aims to continue to improve its profitability and increase market share substantially over the years ahead and acknowledges Genesis Capital's role in this goal. The relationship will enable them to expand their investment with Kerridge as it enhances existing dealerships and opens more retail outlets. Mike Smith concluded, "We are extremely satisfied. Genesis Capital is a flexible and dynamic organisation. We'll be working together as we continue to build the Whitehouse Group business."

Jeremy Hartill, sales and marketing director of Genesis Capital added ,"Today's manufacturers and independent retailers, large and small alike, are opting to finance rather than purchasing outright. Organisations that engage a financing partner early on in the supply cycle are far more likely to achieve greater economies of scale. In the process, they're enhancing the benefits of their investment with Kerridge, while simultaneously managing risk."

About Genesis Capital Plc

The Kerridge finance programme is authorised by Kerridge Computer Company Limited and managed by Genesis Capital Plc. Staffed by professionals with extensive experience in both the finance and software industries, Genesis Capital are uniquely qualified to make informed suggestions on a broad range of products and services designed to meet the genuine commercial funding requirements of Kerridge customers. More about Genesis Capital and Kerridge.

May 2003