Helphire profits up, share price down

by David Masters

Story link: Helphire profits up, share price down

Bath-based Helphire has posted record results for the year ending 30th June 2008, with an increase in sales and pre-tax profit, yet bosses at the company say they are disappointed.

Pre-tax profits for the accident claim handler increased 3.9% to £46.8 million, whilst sales rose 39.5% to £404.9 million.

Despite the record result, Chairman Rodney Baker-Bates said the final figures were much lower than what the company had hoped for a year ago.

Baker-Bates said it had been a difficult 12 months for his company as it has been kept waiting too long by insurance firms who own the company money.

Helphire now charges insurance companies interest on claims that have not been paid within 90 days.

The company’s debt over the financial year surged to £362.3 million, compared to £222.6 million in 2007.

In July this year, the company raised an extra £45 million to reduce its reliance on debt finance. The money was raised by selling 40.8 million new ordinary shares at 110 pence per share.

Outgoing chief executive Mark Jackson said profits were dented by increased operating costs, rising fuel prices that have reduced the number of cars on the road, and rising interest rates.

Jackson announced his retirement over the summer, and will be replaced by the end of the year.

Shares in Helphire fell 4.35% following the announcement to 131 pence.

Shareholders will be paid a final dividend of 5.8p, unchanged from last year.