Accident management firm announces extension of banking facilities to 2014
Helphire’s troubles deepened today after it revealed a pre-tax loss of £6m for the six months to 31 December 2011.
The losses were far worse than the £700,000 posted by the accident management firm in the prior year period in 2010. That compared to a £4.8m profit the year before.
The Bath-based firm also revealed it had extended its banking facilities from 31 December 2012 to 31 December 2014. The financial results released today included the effects of the announcement in May last year that Helphire may have overvalued payments from debtors.
Chairman Avril Palmer-Baunack said: “It has been a challenging period for the group and the focus has continued to be towards delivering further working capital improvements, reducing debt from operating cash flow and improving group performance, customer service and our reputation in the marketplace.
“I am pleased to report that despite the recent difficulties, the group has maintained a leading position in the marketplace and has not only retained its existing important client base, but has also been successful in securing new business, as well as achieving a further reduction in debt.
“I am also pleased that agreement has now been reached with the group’s bankers for the extension of the expiry date of the existing committed banking facilities from 31 December 2012 to 31 December 2014.
“The existence of these newly extended, committed facilities better enables us to continue with our plans to stabilise and move the business forward.”
For full annual results coverage, visit our Results Special page.
Highlights:
- Adjusted* operating loss of £0.7m (2010: £4.8m** profit)
- Adjusted* loss before tax of £3.6m (2010: £1.1m** profit)
- Statutory loss before tax of £6.0m (2010: £0.7m loss**) inclusive of exceptional items
- Net cash inflow from operating activities £10.8m (2010: £14.8m)
- Debtor days reduced to 175 days (2010: 187** days)
- Net debt reduced by £1.3m since 30 June 2011 and £10.9m since 31 December 2010
- Unutilised fleet and working capital bank facilities of £14.0m at 31 December 2011
- Statutory diluted EPS 1.81p loss (2010: 0.09p** loss)
- Agreement reached with Group bankers to extend facilities up to 31 December 2014 Operational headlines
- Hire cases increased by 5.5% to 66,000 cases
- Open case count reduced by 15% to approximately 56,000 cases (2010: 66,000 cases)
- Cases >120 days reduced by 21% to approximately 33,000 cases (2010: 42,000 cases)
- Revenue generating fleet utilisation of 78% (2010: 78%)
- New accounts secured, including agreement with the BBC to run its fleet accident management programme and with Lookers plc to offer replacement vehicle services
* Adjusted measures exclude the impact of the items described as exceptional in Note 5 of the Interim Report and Accounts. ** The comparatives for the period to 31 December 2010 have been adjusted from those originally reported, to take into account the appropriate proportion of the prior year adjustment reported in Note 5 of the Audited Accounts for the year ended 30 June 2011 in relation to the overstatement of the valuation of ABI receivables.
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