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Helphire warns profits will not meet expectations

Helphire has issued a profits warning after a period of weaker than expected trading.

The accident management and credit hire group says financial performance has been below expectations and it expects to report profits "significantly below market expectations".

It's a further blow for the group, which has been restructuring its business since 2009 to reduce costs.

Helphire also informs investors that it may have overstated its debtors carried by 15% or £25m, and it has appointed KPMG to investigate.

"The matter does not affect the settlement of claims, which are negotiated on a claim by claim basis, nor the group's cash position. The group remains profitable and cash generative," said its stock market statement.

Net debt has been reduced by £6.7 million, from £145.8 million to £139.1 million, in the four months to April.

 

"In response to the lower trading activity, the group has not chased market share by lowering the quality of risk acceptance on referrals to gain short term volume.

"The group's partner base has remained resilient, and in addition to the two new contracts which commenced in October 2010 and January 2011 the group has also renewed both of its top five accounts which have fallen due in the period," it added.

 

 

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