Helphire, the Bath-based accident-claim handler, which reported losses of £34.1m in the year to June 30, said today that it has seen a small increase in referral volume and hires since the end of September "but hire length, which is a key driver of the group's performance, is substantively below historical levels and marginally below planned levels".
The company, which works with the insurance and motor industries to provide replacement vehicles to motorists involved in accidents, said in September that hire length – a key contributor to the company's profitability – had declined to an average of 18.7 days from 21.5 days in 2010. And today it warned that market conditions have remained challenging in the period from July 1 to November 17 and are unlikely to improve substantially in the near term.
The news sent Helphire shares spiralling down nearly 20%, or 0.47p, to 1.90p. A year ago they stood at 19.25p.
Meanwhile Avril Palmer-Baunack, who was appointed as non-executive chairman in September, was re-elected as a director at today's AGM which followed the interim management statement.
Miss Palmer-Baunack is chief executive officer of Autologic Holdings, the largest vehicle finished logistics company in the UK and Europe. She has worked in the automotive industry for 18 years with substantial experience of the vehicle salvage sector and previously served as a non-executive director at Helphire between April 2009 and December 2010.
Cenkos Securities plc has been appointed today to act as the Group's Financial Adviser and Broker.
