More than two years after the company went into administration, creditors of accident management business ARMS has received an interim payment of just 13p per pound owed.

In total, bodyshops were owed more than £500,000.

A spokesperson for KPMG, the administrators, said: “There will be a further dividend, but the liquidator cannot comment on the size or timing of it at this stage.”

Following the collapse of ARMS in April 2005, the company’s director Sandra Hunter-Coulson claimed it was still owed money by Endsleigh, its sole work provider, from as far back as 1996.

KPMG has pursued this money for more than a year. A spokesperson told AM: “The matter regarding Endsleigh Insurance is still being actively dealt with by the liquidator.”

Chris Oliver, MD of AJC Wilson and member of the creditor’s committee, said: “A lot of hard work has been done behind the scenes to get us to this position. The current situation is far from satisfactory but we are hoping ongoing activities will bear fruit in the next four to six weeks.”