HHR26 Feb 2014 12:58
Helphire Group provides accident assistance and management services to non-fault motorists (in partnership with insurance companies, brokers and other motoring organisations such as car dealerships, motor manufacturers and repair centres) ensuring they remain mobile until their own vehicles are repaired or they are provided with a replacement. Helphire employs over 1,250 people across its head office in Bath, operational sites and a national network of 25 branches. The Group also operates through subsidiaries, including Total Accident Management, Principia Law, Albany Assistance, Cab Aid and Suitable Marques. It has a fleet of approximately 7,000 vehicles.
Helphire is expecting to receive financial compensation from insurers who benefitted financially from the alleged criminal activity of Autofocus employees who reportedly falsified hire rate evidence in their submission to Insurers and the Courts. Several insurers have indicated they will enter into negotiated settlements with Helphire. Data was handed to HHR's intermediaries in late June 2013, for the start of analysis. A favourable Court of Appeal judgement for similar company Accident Exchange on 4/2/2013 (who have already recovered more than £13m and are seeking another £130m damages from insurers) should help Helphire to recover substantial damages, potentially running into tens of millions of pounds.
Debts of £362 million in 2008 have been gradually payed down and eliminated in 2013, and in the same year the company returned to profit and resumed dividends. Cash settlements from insurers arising from the Autofocus debacle are expected to be returned to shareholders, potentially commencing in 2014.
I think were are seeing one of those investment opportunities where a company with a battered share price starts to turn around. Recent company announcements suggest the turnaround may have begun.
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