Valuation: REG TRANSFERS LIMITED

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The group's principal trading activity, conducted through its subsidiary Registration Transfers Limited, is the sale of cherished (personalised) number plates in the UK. Revenue is largely transactional, earned on brokering and facilitating the transfer of registration marks between buyers and sellers via DVLA processes. The model is commission or margin based, generating high gross margins without holding physical inventory.

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The UK personalised number plate market sits within the broader automotive aftermarket and collectibles sectors. Market size is estimated at £150m to £200m annually, though precise data is scarce; growth has historically tracked low single digits, roughly 1 to 3% per year, buoyed by plate scarcity and status appeal but constrained by vehicle sales cycles and discretionary spending.

Demand is driven by individual consumers seeking unique plates for personal or investment reasons, with some corporate gift and branding purchases. The market is mature and fragmented, with several well established intermediaries and a long tail of smaller dealers, though the sector remains dominated by a handful of online platforms including DVLA's own sales channel. Consolidation has been limited; no major private equity roll up has occurred, leaving room for organic growth and M&A for scale seekers.

Over the next three to five years, growth will likely stay modest unless DVLA policy expands transferable formats or secondary market regulation tightens. The principal structural risk is regulatory: any move by DVLA to restrict transfers or claim more of the economics would compress margins industry wide.

For a seller today, the window is favourable. There are few scaled, profitable platforms available, so a trade buyer or investor seeking market leadership would pay for scarcity. Timing is good while margins remain strong and regulation is stable.

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• Regtransfers.co.uk / Regtransfers (likely same group or closely related brand, dominant online presence)
• National Numbers (long established broker with similar online model)
• Speedy Reg (mid tier broker competing on price)
• Primo Registrations (premium plate specialist)
• DVLA direct sales (government channel, competes for new issue plates)

These competitors are inferred from general market knowledge; the filed accounts do not name rivals.

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Most recent filed accounts: FY2025, made up to 28 February 2025. This is approximately six months old, within the acceptable recency window, so no roll forward is required.

Reconstructed profit and loss, GBP, figures marked (est.) are derived

• EBITDA
• Additional gross profit
• Cost of sales to total revenue

£56.7m

£11.2m

£55.6m

£11m

£60.4m

£11.9m

£61.7m

£11m

FY2022 (est.)

GP £20.5m · EBITDA £11.2m

108 employees

FY2023 (est.)

GP £19.9m · EBITDA £11m

121 employees

FY2024

GP £21.3m · EBITDA £11.9m

122 employees

FY2025

GP £20.9m · EBITDA £11m

131 employees

Basis: Revenue, gross profit and headcount taken directly from audited consolidated group accounts filed at Companies House. EBITDA for FY2025 calculated as operating profit £10.9m plus depreciation and amortisation £91k. EBITDA for FY2024 calculated as operating profit £11.8m plus D&A £103k. FY2023 and FY2022 EBITDA estimated using operating profit plus D&A from prior filings (group accounts under FRS 102). Accounts are full audited group accounts.

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The business is debt free with no disclosed bank borrowings or creditors falling due after more than one year. Cash of £43.2m represents roughly four years of EBITDA, an exceptionally strong position; the filing confirms net current assets of £50.0m supporting going concern. Debtors are estimated as current assets minus cash. Working capital is relatively light for revenue scale, consistent with a brokerage model. The only debt like items are provisions of £50k and a modest related party balance of £18k owed to the director's rental company. There is no property on the balance sheet; rent is paid to Mr Brown personally, which may be renegotiated or capitalised on sale. Surplus cash above a normalised working capital buffer, perhaps £35m or more, would likely be treated as cash free at completion, significantly reducing the equity consideration versus enterprise value.

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Multiple range: Asset light, high margin niche consumer platforms in the UK typically trade at 5.0x to 7.0x EBITDA. This business commands strong margins (EBITDA margin c. 18%) and stable revenue, but operates in a slow growth, regulation dependent niche with limited comparable M&A activity.

Precedent transaction: No directly comparable UK number plate broker transaction is publicly documented. The closest parallel is the 2021 acquisition of CarReg.co.uk assets by Registration Transfers itself; terms were not disclosed. In the broader online automotive services sector, Cinch's 2021 roll up of used car platforms occurred at reported multiples around 1.5x revenue for high growth targets, but those were loss making growth plays rather than profit machines. Given the absence of a clean comp, the multiple range is anchored on general UK SME platform transactions.

Operator scales applied: On our assumption of 0 to 3% industry growth, 0 to 3% company growth, stable revenue quality (±5% swings, c. 60% recurring), 25%+ EBITDA margin and sub 1% capex intensity, the business sits firmly mid range. The exceptional margin and asset lightness pull toward the upper end; the modest growth and regulatory dependence pull toward the lower end.

EBITDA for valuation: £11.0m (FY2025 filed, audited).

Indicative enterprise value: £55m to £72m, applying 5.0x to 6.5x to £11.0m EBITDA. Given surplus cash of approximately £35m, equity value to the seller could exceed £85m on a cash free, debt free basis if excess cash is retained.

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These bars are calibrated for UK SMEs and do not apply to midcap or larger businesses, where the thresholds are very different.

The metric most limiting the multiple today is revenue growth; low single digit expansion caps buyer enthusiasm despite the strong scale and margin.

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The single highest return action is building out a recurring revenue stream (storage, alerts, valuations) because it transforms the multiple conversation from "transactional broker" to "platform with embedded customers".

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The top ranked route is a trade sale or private equity process run in parallel. At this scale, both buyer types will engage competitively. A trade acquirer, likely a larger automotive marketplace, finance house or registrations competitor, would pay for market share and margin. A private equity buyer would back Mr Brown or a successor team to consolidate the fragmented market. Realistically, the owner should expect a 6 to 12 month process, with competitive tension driving price toward the upper end of the range. Given Mr Brown's age (65) and apparent sole control, succession planning will be central to any negotiation; buyers will want clarity on transition and may structure earnout or consultancy arrangements. The surplus cash position gives flexibility, and a clean exit at strong value is achievable within 12 to 18 months with the right preparation.

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At your size expect a structured, competitive auction run by a larger corporate finance house, with full workstream due diligence and international buyers likely on the list. Allow around nine to fifteen months from starting properly to money in the bank.

At this size, process discipline is the value driver. A well run timetable with several credible bidders reaching binding offers on the same day is what produces a premium.