Case Study: DTM (Direct Tyre Management)

Becoming a technology-led, environmentally considerate tyre management business

Direct Tyre Management (DTM) uses smart technology to predict and prevent potential roadside failures. It supports major fleet customers in reducing waste, increasing vehicle safety, and minimising costs while being considerate of the environment.

 Backing an entrepreneurial business with innovation at its heart

DTM (previously part of NRG Group) was established in 1996 in Widnes and is now the UK’s largest independent tyre management provider.

When we met the business in 2020, Steve and the rest of the management team had created a standout national fleet services business with innovative products and services. The company had seen impressive growth, and we saw an excellent opportunity to develop its services further and continue its buy-and-build strategy.

We invested £16.5m in September 2020, and Palatine Partner Andy Lees and Senior Investment Director Tom Wilding joined the board as Non-Executive Directors.

Going for growth with added value

Organic Growth – We invested in the sales function and expanded addressable fleet types from the core complex fleets to more mixed fleets with higher volumes. We also supported the sales team in leveraging technology for Revenue Operations, enabling enhanced sales prioritisation and conversion.

Margin Improvement—We connected the business with Burgin Partners, who reviewed DTM’s pricing strategies, resulting in a more dynamic pricing model that enables the company to react to cost inflation. The introduction of new data warehousing facilitated automated and enhanced operational reporting and analysis, which allowed the business to target margin opportunities. We also recruited a COO to optimise call centre performance and improve scalability.

Digital and Data – With CIL’s support, we developed a data strategy which led to investments in data warehousing architecture, facilitating more efficient customer onboarding, new customer reporting capability and additional revenue streams with enhanced pricing options. We also recruited a new CTO and expanded the Development Team to accelerate the tech and data roadmap, including modernisation of the tech stack supporting the TAMS platform.

De-merger—In October 2020, we acquired a majority stake in NRG Group. We then separated DTM from its former sister company, NRG Riverside, appointing new management teams that allowed both businesses to focus on delivering independent sales strategies, digital roadmaps, and operational efficiencies.

ESG – DTM implemented an award-winning business strategy titled ‘PACE’, which stands for people & culture, approved service network, customer focus, and environmental responsibility. The framework prioritises the material areas of ESG and creates direction for the business.

They also implemented several employee-focused initiatives, including ones centred on well-being and creating an inclusive company culture, which increased staff retention and satisfaction.

The head office has switched to renewable electricity, and the fleet is transitioning to hybrid vehicles.

The business’s commitment to ESG led to two prestigious award wins in 2024 – a Vision Award from investment organisation BVCA and being named Fleet Vision International’s 2024 Most Sustainable Fleet Management Team.

Results

We successfully exited in a secondary buy-out by Caledonia Private Capital, with turnover increasing from £30m to £60m in just two years.