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Helphire posts profit as continues to clear debts

Accident management group Helphire has posted a pre-tax profit of £3.6m after adjustments as it continues along its recovery plan.

That figure, for the last six months of 2010, is down on the £5.7m posted from the comparable period in 2009.

Adjusted revenues were £126.5m (2009: £152.5m).

The embattled business has cut £204.4m of debt since it instigated its turnaround plan in December 2008.

But it still had £143.3m of borrowings left on its books at the end of December.

Martin Ward, group managing director, said: "It is pleasing to report at the interim stage that the recovery plan continues to deliver significant ongoing benefits.

"A further net debt reduction of £18.7m since 30 June 2010 and a total reduction of £204.4m since the instigation of the recovery plan from December 2008, has considerably improved the financial position of the group."

"A doubling in net cash flow to £6.3m (2009: £3.1m) together with improvement in fleet utilisation to 78.4%, have also been positive factors. The number of new and legacy cases being passed to litigation appears to have peaked and this too will have a future positive effect on financial performance."

Ward said the restructuring and consolidation projects across the group have been broadly completed and Helphire is now a smaller, more efficient and more tightly managed business, well placed to deliver profitable business and generate positive net operating cash flow.

"Following the slower start to the financial year, trading remains in line with our expectations and the second half is generally a stronger period. The macro environment remains challenging however, it is clear that Helphire is now much better positioned to remain a leading player in its core marketplace."

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