Helphire struggles as RTAs decline
Helphire Group, the motor accident assistance company, has warned that profit for the current financial year will be substantially below expectations because of a fall in road traffic accidents (RTAs).
The company provides replacement vehicles to innocent parties in car accidents and it would seem that higher petrol prices have impacted on average mileage and consequently the number of accidents on UK roads.
In addition, motor repair shops are less busy, reducing the period for which accident victims need replacement vehicles.
The Bath-based firm, which employs 1,100 staff, says it is looking to cut its annual costs by around £5 million.
The group expects the downward trend in business to continue during the recession and is therefore reducing in the size of its fleet, which currently comprises around 17,000 vehicles.
It will also take steps to reduce administrative costs and job losses are expected.
Through its subsidiary companies, the group provides a range of services to the insurance and motor industries including the provision of legal expenses, theft policies, claims handling facilities and accident management solutions.
Category: Car Insurance News, Employment News, Financials, Insurance News
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