The credit hire giant Helphire, which has undergone major restructuring, has published its interim results that show the positive impact of its ongoing turnaround programme.

The company has managed to cut its debt by £30.4m since June 2009 and £153.2m since its restructuring programme began in early 2009.

As a result, its adjusted operating profit increased by 12.4% to £10.0m (2008: £8.9m).

Despite the improving situation, the Group Managing Director Martin Ward, said there is still more to be done.

“The results at the interim stage show the emerging benefits of the turnaround plan put in place in the early part of 2009.

"The Group has achieved a significant ongoing reduction in its working capital requirements, improved operating profit and, after operating cash outflows and debt interest payments, seen a net positive inflow of cash.

"Net debt, including fleet, has decreased by a further £30.4m since June 2009. The cost base continues to be addressed with an annualised reduction of £44.0m since December 2008.

"Although there is more to be done to reach our desired state, these results should be seen as early signs of improvement in the business.”

 

The company, which supplies replacement cars to crash victims, has been tackling one of its most significant burdens - the time it takes insurance companies to settle these credit hire bills.

It appears to be making headway, with debtor days reduced by 11.7% to 234 days (2008: 265 days).

The company has also reduced its fleet of rental cars and is better utilising its remaining vehicles. As a result, fleet utilisation has increased to 85.7% (from 72% in the same period last year).

 

It has also introduced new fixed price services with current claims market and promises more details of these when the pilot trials have ended.