6th Nov 2012 07:00
6 November 2012 Helphire Group Plc (`Group') Interim Management Statement
Helphire Group plc is today issuing an update on current trading and prospects of the business in respect of the period from 1 July to 6 November 2012. Unless otherwise stated, the financial and operational data, where identified, relates to the 3 month period that ended on 30 September 2012.
Current Trading
Although the market remains challenging the Group's financial year has begun well and the first three months show a continuing improvement with the Group recording a trading profit against a significant trading loss during the corresponding period last year. Early indications are that this trend has continued in October. However, the coming winter months have a significant weighting in respect of the Group's trading so whilst the early indications have been encouraging there is still much to deliver.
Cash generation has been relatively strong and debtor days at 30 September 2012 have been further reduced to 156 days (30 June 2012: 165 days) and compare to 180 days at 30 September 2011. Total net debt has continued to decrease and at 30 September 2012 was £106.2m (30 June 2012: £110.8m).
Autofocus
Since the making of the agreed court order on 26 June 2012, the Group has been engaged in an ongoing process involving solicitors acting for the Autofocus Liquidators and the intervening insurers, RBSi and RSA, to agree the process to extract the information required by the Group, and permitted under that order, which will enable the Group to determine the appropriate level of damages suffered as a result of the unreliable evidence offered by Autofocus and then to seek recovery of those losses from defendant insurers. This exercise is close to completion and the approved intermediaries should soon be able to commence the process to extract and provide the Group with the permitted information. Once started it will take some time to conclude the process and therefore it is still too early to quantify the value or timing of any possible settlements that may be obtained.
Where possible, it remains the Group's intention to make good its losses through negotiated settlements. A number of insurers have indicated that they would wish to enter into dialogue with the Group in this respect.
Prospects
The Group's markets are competitive and remain subject to regulatory scrutiny but recent results demonstrate that the Group has achieved a degree of stability and the Board continues to view future months with cautious optimism.
For further information, contact:
Helphire Group plc 01225 321134Avril Palmer-Baunack, ChairmanMartin Ward, Chief Executive OfficerStephen Oakley, Chief Financial OfficerSquare1 Consulting 020 7929 5599David BickMark Longson
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