DF Capital helps motorcycle distributor bring BSA Gold Star back to the UK
DF Capital has been working with Lukas Distribution throughout 2022 to provide a variety of working capital solutions to enable it to import and distribute the iconic BSA Gold Star motorcycle in the UK once again.
About Lukas Distribution
Lukas Distribution became the exclusive distribution partner for BSA Motorcycles in the UK and Ireland in 2022 and now manages UK logistics for the Indian-owned brand. Headquartered in Coventry, Lukas Distribution is owned by Luke Gregory, a well-known personality in the bike trade. Gregory has worked across a number of dealer and brand networks over the past 20 years, including former BSA dealership Lloyd Cooper Motorcycles in Watford, Colchester Kawasaki and Global Moto.
What did Lukas Distribution need?
BSA, owned by Indian billionaire Anand Mahindra, has built a modern take on the seminal Gold Star motorcycle. This UK relaunch has meant that dealers in the UK have been clamouring for stock due to heightened customer demand.
As part of the revival, BSA agreed a new import deal with Lukas Distribution earlier this year. The heritage vehicles will be available from the start of 2023 and to enable this, Lukas Distribution approached DF Capital to see if it could help provide support from a financial perspective and help take the business to its next level of growth.
How did DF Capital help?
DF Capital has provided a six figure floorplan facility to Lukas’ UK dealer network.
Results
The floorplan facility has meant that DF Capital can make upfront payments to Lukas Distribution on the dealer’s behalf, when the vehicles are delivered. The dealers will then pay DF Capital when the assets were sold. This helps maintains the dealers’ cashflow position and focus on sales.
Luke Gregory, managing director of Lukas Distribution, commented: “DF Capital has supported our growth over the past six months and this, in part, has contributed to the high sales we are seeing. We’ve sold a considerable number of units already – in advance of them being available and our high-quality dealers can use the flexible facility to make sure they have the right amount of funding at the right time. We’re expecting to sell over 1500 motorcycles in 2023 from our dedicated site so it’s important to have the right financial infrastructure in place to do this. It’s been a pleasure working with the DF Capital team – they’re knowledgeable, helpful and, most importantly, no one over-complicates things. We chose DF Capital over and above other banks because it is able to act quickly and the IT capabilities are first rate.”
Alexa Lemzaouni, programme manager – powersports at DF Capital commented: “This is a big signing for both Lukas Distribution and DF Capital. It’s an absolute privilege to be involved with bringing one of the most exciting motorcycle brands in the world back to the UK and helping increase sales for both Lukas Distribution and its network of dealers. It wanted a flexible financier that could provide an alternative solution to traditional lending. We could see the potential in the business, so we quickly made the decision that we could definitely support the business’ growth and operations. We look forward to seeing where the company goes from here.”
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