Helphire results take a dip

Helphire Group has issued a trading update following results that were less than expected.

A spokesman for Helphire said the group had been affected by poor market conditions such as high petrol prices and fewer road miles being driven, but were hopeful for the future.

The spokesman said: "These market conditions have continued, and as a consequence the group now considers that its results for the year to 30 June 2011 will be below current market expectations."

The spokesman said Helphire management anticipated that the group's results for the year to 30 June 2011 would be weighted towards the second half as it included new contracts and the seasonal winter peak.

The spokesman added: "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.

"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."