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Accident Exchange calls for investment after profits dip

Accident Exchange has reported pre tax profits of £6.5 million for the six months ended October 31, 2007 compared to £7.9m over the same period in 2006.

The company has requested £50m of investment in the form of convertible notes (a type of coupon paying debt security that converts to the issuer’s ordinary shares at maturity) in order to offset its total debts of £125.3m. The firm said it intends to make the £50m offering to international institutional investors, with the proceeds also used to repay £5m of its existing secured facility and for additional working capital.

Adjusted pre tax profits before amortisation of acquired intangible assets, costs of share based payments and exceptional items was £8.6m compared to £9.4m in 2007.

Despite the dip in profits, revenues increased by 47% to £77.4m, compared to £52.7m in 2006.

David Galloway, Accident Exchange non-executive chairman, said: “The board believes the group will have the necessary financial resources in place to robustly pursue its aim of developing further a proven and profitable business model in a high growth market place.

“With the legal certainty, infrastructure and financial resources in place, Accident Exchange can resume its aim of developing am expanding, profitable business.”

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