7th Aug 2007 07:01
Helphire Group PLC07 August 2007 For release at 07.00 Tuesday 7th August 2007 Helphire Group plc ('Helphire' or the "Company") Commercial Agreement with CS2 Lawyers Limited, acquisition of the CS2 Group of legal services companies and agreement of new banking facilities. Helphire today announces that it is growing its legal services and claimsmanagement operations by a commercial agreement with CS2 Lawyers Limited and theacquisition of a group of legal services businesses. Helphire has entered into a long-term commercial arrangement with CS2 LawyersLimited, which manages uninsured loss recovery (ULR) legal cases, and hasacquired CS2 Group of companies ('CS2 Group'), comprising Fleet Legal Limited, avehicle fleet accident manager, E-Claim Limited, a provider of legal expensesinsurance and Medirep Marketing Limited, a medico-legal reporting agency.Helphire's total investment in these new operations is £10.7million (£10m net ofcash balances) and is being financed out of the new banking facility describedbelow. The CS2 Group is based in Chesterfield in Derbyshire and has over 200 employees.CS2 Lawyers handled over 10,000 Uninsured Loss Recovery (ULR) motor claimslast year. Fleet Legal Limited provided accident management services to over60,000 vehicles. E-Claim provides before-the-event legal expense insurancepolicies to a policyholder base in excess of 100,000. Medirep is an in-housemedical reporting agency which arranges reports for injured victims of accidentswhose claims are being handled by CS2 Lawyers Limited. In the financial year to 31 March 2007, the CS2 Group had turnover of £8.4m andmade a profit before interest and tax of £1.9m. This investment in the legalservices market is anticipated to realise significant cost and revenue synergiesand strengthens the position of the Helphire Group as a market leader in motorclaims management. The Company also announces that it has entered into new banking facilities withits syndicate of banks. A £150m facility incorporating term loans and arevolving facility have been put in place from 1 August 2007 at a cost rangingfrom 0.95% to 1.4% above LIBOR dependant upon specific financial ratios. Enquiries: Mark Jackson, CEO Helphire Group 01225 321 205 Chris Steele, Adventis Financial PR 020 7034 4759 / 07979 604 687 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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