Helphire shares plunge 42% after profit warning
by David Masters
Story link: Helphire shares plunge 42% after profit warning
Accident claim handler Helphire saw its shares plummet 42% following a profit warning.
The group released its profit projections for the first half, which were significantly lower than a year ago due to a decline in accident frequency and hire durations.
However, the company said it is confident of improved performance in the seasonally strong second half, when it will have had time to cut costs and improve profits.
The credit crunch has led to lower vehicle usage, reducing accidents and hiring, and speeding up repair times, market analyst Stephen Thomas told Reuters.
In addition, motorists are driving at slower speeds to conserve fuel, and delaying ‘cosmetic’ repairs.
Helphire said its pre-tax profit for the six months ending 31st December 2008 will be in the region of £3 million, down from £21.8 million for the same period last year.
In a statement, the company said: “Whilst market conditions remain challenging, the board is confident of an improved performance in the second half of the year as the company’s action plan to restore profitability and improve cash generation is implemented.”