Helphire reports £149m loss

by David Masters

Story link: Helphire reports £149m loss

Helphire has posted a full-year pre-tax loss of £149 million for the 12 months to 30 June.

Adjusted operating profit before tax fell 90% to £4.7 million, down from £55.4 million last year.

The company, which supplies replacement vehicles to drivers whose cars are being repaired following an accident, blamed the loss on non-cash exceptional charges.

In addition, the firm was hit by a difficult economic climate and the falling value of its vehicle fleet.

The loss is compared to a pre-tax profit of £43 million in 2007-08, and comes alongside a 9% fall in revenues, down to £368.5 million.

The number of drivers using Helphire services fell 2.5%, and average hire lengths decreased.

To deal with reduced demand, Helphire sold nearly 4,000 vehicles, contributing to one exceptional charge of £7.7 million.

The firm reduced its net debt by £122.8 million to £239.5 million.

Richard Rose, chairman, said his turnaround plan for the firm has reduced debt and improved cash recovery.

“Despite the economic situation, the underlying market for our service remains strong and, whilst insurers have historically resisted settling of cases, we are seeing more engagement with insurers in shaping a way forward that eliminates frictional costs”, he said.

Martin Ward, managing director, added that the turnaround plan is running ahead of schedule.

“We believe we have aligned Helphire properly within the marketplace and are ahead of our plans both in terms of timescale and quantum, having positioned it to operate profitably and cash positively as we embark upon the more forward-looking phases”, he said.

Adding: “The current year has started with trading in line with our expectation and we are continuing to generate operating cash.”