Accident Exchange warning

Accident Exchange Group has issued an interim statement warning of cuts in its business.

IT said: “Rental starts for the four months ended 28 February 2009 were 3% down on the comparative period at 12,800 of which 52% were prestige (comparative period: 13,200, of which 54% were prestige).

“In common with the industry, rental lengths continue to be reduced by improved efficiency in the speed of vehicle repairs arising from greater available capacity within the repair industry, which itself has arisen from reduced accident volumes. Consequently, rental days for the four months ended 28 February 2009 were 7% down on the comparative period at 367,000, 50% of which were prestige (comparative period: 397,000; 58% were prestige).

But the company said: “Referral volumes from a significant new insurance based account win in March 2009 are expected to counter any reduction in seasonal volumes that would ordinarily arise at this time of year as the winter months come to an end. The account is already generating claims at a run rate in excess of 1,000 per month. This account win will further increase the proportion of mainstream rental days.

The company has reduced its fleet size.