RED Driving School - Update

The structure at RED has changed, surprisingly David Cowan has resigned as director and on 11th February 2015 this position was taken by Philip Weston.  Mr Weston was a director at Kelso Place Asset Management until 2006, of course with Kelso having so many different limited companies, Philip is still director for some..  As companies go the holding body is quite changeable in comparison to other driving schools. Whether this is good or bad news for RED is yet to be seen.

Philip Weston is also a director of I2S Group Ltd, accounts filed up to date, and the company is a green light one. Which is effectively good news. I2S Group Ltd has also changed it's name four times. As a management company their role is much the same as Kelso's had been.

Philip Weston is director of 22 limited companies of which 21 are active. The combined deficit for these companies amounts to 17,441,738, although there is over £1m in the bank for the combined cash available, it does pose a question for this company who are under their management control.

I have of course bought up the subject of RED several times, mainly because it is the least stable of the major players of driving schools.  With the AA now answerable to share holders, and more offers available for potential pupils but a higher overall hourly rate, may put them in the running for a potential take over bid.

Is there a future for large schools or are small cooperatives or franchises the future.  Driver education is frequently offered by smaller companies and in the corporate field is welcome more often even by major businesses. In the past RED made a conscious effort to raise it's profile, attract new blood into driver training and to revive it's media position.  This has recently stumbled and that is a shame as all competition is healthy.

Excessive claims by the company on TV were muted as the start of it's downfall but really it was how it was presented.  If the business had been packaged in a different way then it would not be the focus for discussion now. So really an announcement of future plans would be worthwhile to everyone involved.