Capital Reduction and Resumption of Dividends

Helphire Group plc Issue date: 20 June 2013 Helphire Group plc ('Helphire' or the 'Company') Capital Reduction and Resumption of Dividends Highlights * Court approval to resume dividend payments granted * Improvement in trading results has continued * Cash generation has improved again with further working capital enhancement * Special dividend of 0.165 pence per share declared today Capital Reduction The Board is pleased to announce that the High Court of Justice ChanceryDivision has yesterday granted an Order confirming the cancellation of thedeferred shares and the share premium account of the Company resolved on andeffected by a special resolution passed at the general meeting of the Companyheld on 22 May 2013. This Order has now also been filed at Companies House and as a consequence theCompany is now in a position to resume the payment of dividends. Dividend Policy As stated in the prospectus dated 28 February 2013 the board intends to managethe Company so as to maximise its profit and cash generation and, in theabsence of unforeseen circumstances, or other requirements or commitments towhich the Directors should have regard, to distribute as much of the profits byway of dividend as it reasonably and legitimately can, provided sufficient cashis available to pay such dividends. Trading Update Whilst national accident rates have continued to fall the Group's tradingresults through to 31 May 2013 continue to show a considerable improvement overthe corresponding period last year. Furthermore the board is pleased to announce that as at 31 May 2013 debtor dayshad been further reduced to 127 days and that net debt (including fleet relateddebt and cash balances) has been reduced to £1.1m. Payment of Dividend As the Group approaches the end of its financial year the Board is confidentthat trading for the year will meet its expectations and that cash generationwill exceed its expectations. The Board is therefore pleased to announce thepayment of a special dividend of 0.165 pence per ordinary share (£2.5m inaggregate) which will be paid on Thursday 25 July 2013 to shareholders on theregister on Friday 12 July 2013. As the refinancing that removed the majority of the Group's debt completed on27 March 2013, the Group's results for the year ending 30 June 2013 will onlybenefit from the associated interest cost reduction for approximately threemonths of the current financial year. For this reason, under the terms of theExecutive Management Incentive Scheme, whilst management have been set anoperating profit target in respect of the year ended 30 June 2013 of £7.5m(excluding exceptional costs) the corresponding dividend target is £2.5m. Thisdividend target will be satisfied by the payment declared today. The Board will make a decision in relation to the payment of a final dividend,if any, in respect of the year ending 30 June 2013 at the time of the Company'sannouncement of its results for the year ended on that date, which is expectedto be in September 2013. Thereafter the Board would expect to adopt a typicaldividend calendar. For further information, contact: Helphire Group plc 01225 304501Martin Ward, Chief Executive OfficerStephen Oakley, Chief Financial Officer Cenkos Securities plc 020 7397 8900Ian SoanesMax Hartley Square1 Consulting 020 7929 5599David BickMark Longson Notes to Editors About Helphire Group plc Helphire Group plc is a market leader in the provision of accident managementassistance to drivers involved in road accidents that were not their fault.Working with the UK's top insurance companies, its services include provisionof like for like replacement vehicles, financing of vehicle repairs, legalexpenses and the management of personal accident claims.