Fleet management, salary packaging and asset finance company McMillan Shakespeare has cut back on its United Kingdom operations, citing COVID-19 impacts. It has stopped originating finance on its balance sheet and has put its book into run-off.

The company said it would restructure the UK business, concentrating on fleet management and continuing with some off-balance sheet financing.

The UK business generated $63.9 million of revenue in 2018/19 – 11 per cent of total revenue.

It said the Australian and New Zealand asset finance operations are “subdued” but there has been minimal impact on receivables.

The company also reported that it has been able to extend its debt facilities. It has $320 million of senior debt facilities that partly fund its asset finance operations in Australia, New Zealand and the UK.

The facilities were due to expire in March next year but two-thirds of the facilities in Australia and New Zealand have been extended to March 2022, while the balance has been extended to 2023 and 2024.

The UK facility has been extended for one year to allow for the wind-up of the asset on-balance sheet asset financing business.