Helphire, which supplies replacement vehicles to crash victims as well as providing cars on long-term corporate deals, has seen demand fall in the last four months by 22.5% compared to the same period in 2008.

It also saw hire days fall almost 30%, although it said in its interim management statement this morning that these lower volumes were in line with management’s expectations.

The length of hire has stabilised with an increase of 0.8 of a day compared to June 2009, reversing a recent trend.

Following the removal of 4,600 vehicles from its credit hire business, the company has seen fleet utilisation rise to 84.3% from 71.6%.

These vehicles are now supplied on a long-term corporate rental contract until next year when they will be returned for disposal.

Some 900 employees have also been made redundant, with a further 350 following before next year.

The length of time it takes its debtors to pay has been a major issue for the company.

It has worked hard to reduce debtor days, which now stand at 249 compared to 266 days this time last year.

Earlier this year, Helphire lost one of its largest referrers when Acromas, which owns AA and Saga insurance, brought its credit hire business in house.