The deal accounts for about 50,000 vehicles - 40 per cent of the 125,000 cars it scraps every year. After the announcement, Universal Salvage shares dived by 55.13 per cent to 215p - the previous year low was 461p.
“We're confident of replacing the business over the next six to nine months,” says Universal Salvage. The firm hopes to announce profits of £7.2m for the year to April 27, 2002 before exceptional charges of £665,000 relating to cost reduction measures and an abortive site acquisition in Scotland. Last year, pre-tax profits were £6.6m.