After having no choice but to issue a profit warning recently, the wheels may be falling off Helphire, an accident claim handling firm.
The company, based in Bath, has declared that both its full-year profits and its revenues will face significant losses. The announcement sent its shares into a tailspin, resulting in a closing figure of £21.50. The total loss was a 28 per cent drop.
The company mostly pointed to a combination of good weather and high petrol garage prices, which have led to fewer crashes being suffered by motorists.
Providing services for road accident claims, Helphire supplies so-called ‘blameless’ motorists involved in an accident with interim cars while it handles the repairs on any pranged autos. Helphire additionally offers legal help for preparing any personal injury claims that may have been incurred during the accident.
However this is not the first time the firm has been in hot water. At the height of the credit crisis two years ago, the company nearly shuttered as it reeled from the loss of its largest customer, Saga and AA owner Acromas.Saga.
Since that date, 1,200 employees have been made redundant, two instances of rescue fundraising efforts have been attempted, and two chief executive officers have come and gone as well.
Despite successes related to the firm’s efforts to undergo major overhauls earlier in the year, business has still been bleak for the traffic accident claim help provider. Recently company head Martin Ward stated that he had hopes that business would become more brisk, as the seasons turn to the winter, which traditionally has been a period of the year when crashes tend to happen more often. Pre-tax profits for the firm however are estimated to be approximately £13.9 million, which compares unfavorably to the £21 million predictions made by analysts.