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Tough conditions blamed as Helphire warns of declining performance

Helphire has warned investors this morning it won't meet their full-year market forecasts and it expects to post a drop in sales and gross profit.

It blames adverse market conditions and lower accident rates for the decline in its credit hire and accident management business.

However it hopes the coming winter and two new contracts will give the business a lift.

"Overall, the group anticipates revenues and gross profit to be below the prior year however, as a result of the overhead reductions delivered by the restructuring programme, adjusted operating and pre tax profit for the year to 30 June 2011 are anticipated to be broadly comparable to the prior year," said its statement.

 

The Group expects to comply fully with its banking covenants and has continued to reduce its total net indebtedness as a result of cash generation and paying down its fleet finance leases.

 

Martin Ward, group managing director, said: "Prevailing market conditions have not helped in supporting the activity levels we had expected to see and the lower accident frequency has dampened our expectations.

"Helphire is in much better shape following the turnaround plan and despite the lower expectations the Group has continued to strengthen its overall position."

 

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