Cyclescheme sold
Posted on 23 Mar 2010
ActSmart has been tracking the sale of Cyclescheme since last Autumn, when news of disposal plans reached our offices. Approaches to Richard Grigsby confirmed that the new arrangement with the Grass Roots Group would be good for IBD partners.Cyclescheme, which last year reported sales of £22.7m has joined the Grass Roots Group PLC, with a reported total turnover of £265m and offices across 16 different countries. In 2009 the Grass Roots Group UK Ltd reported profitable sales in excess of £100m.
Grass Roots UK's principal activities are the provision of marketing, research and HR services. The company has a broad employee benefits offering, incorporating: care-4 - Innovative childcare voucher scheme; bike4work - Bike to Work Scheme to promote healthy commuting; phoneSimple - Employer and employee benefits available on mobile phones; flexSimple - Bespoke employee benefits.
It is not clear at this stage whether ‘bike4work' will be accommodated within the Cyclescheme operation or will continue to operate independently.
Richard Grigsby told ActSmart that the merger would be good for Cyclescheme's IBD participants, facilitating greater opportunities, allowing Cyclescheme to better compete with its main rivals for employee schemes.
The business will remain in Bath with Richard Grigsby and Gary Cooper continuing as Directors, but with increased time available to develop the business within the new structure. Grass Roots UK Managing Director, Andy Lister and Paul Bartlett, Head of Employee Benefits, will join the Cyclescheme board.
Grass Roots Chairman and CEO David Evans stated "This is a first class business with great scope for future development."
Richard Grigsby was equally delighted with the opportunity "Gary and I felt the time was right to become part of a larger business, providing we could find one which shared a similar ethos. We have known Grass Roots since our conception and they know us, and our marketplace, very well. David and his senior team also enjoy a great reputation for looking after their people. We feel very comfortable with our decision to join them and hugely optimistic for the future of our business".
It's an interesting time for the Cycle to Work initiative with numerous third party providers entering the market and rumours circulating about other providers seeking to sell. As some new entrants see opportunities others are seeking to consolidate.
No changes to the structure of the scheme are expected in tomorrow's Budget.
