Member Info for Frankys

The winter months have always been much better for this company for obvious reasons. It changed its reporting dates a number of years back to even up the two halves better. I have a fair number of HHR shares, and would buy more, but the Drive Assist failure has made me nervous of investing more. I believe that it was 'insurer friendly', and still went down. I think Enterprise Rentacar is scooping up a lot of contracts and might be partly behind the failure of DA? I think that probably Enterprise has overtaken HHR as market leader, and we have Quindell also now competing for insurer work. I can't see how HHR can continue to compete effectively unless it can improve its margins (maybe by a link under ABS with a solicitors firm?) or by somehow shrinking its debt. However, it has very substantial revenues, and probably a good reputation. But it somehow needs to sort out its borrowing costs and net margin. I note in today's papers that Neil Woodford at Invesco has engineered the appointment of Avril Palmer-Baunack (Helphire Chairman) as Executive Chairman at Stobart Group, against 'best corporate governance practice' I read into this that he must like what she has done/is doing at Helphire. Invesco owns 29% of Helphire. I just don't understand though why no directors have bought shares (which they could have done at a fraction of today's price), if everything is hunky dory. Could a close period really last this long if something is whirring away in the background?

You say that The Court of Appeal handed down its decision re: Accident Exchange and Autofocus today Wednesday. What was the decision please?

Under the ABI GTA protocol an insurer has 90 days to pay a claim at a lower rate, after 90 days the rate rises. The trouble is, that even if an insurer wants to pay within 90 days, some of them are so inefficient that their administration does not allow it. (unless things have improved in the last few years which I very much doubt) Insurers tend to be so inefficient that they need to sub-contract claims services to companies like HHR, who (historically at any rate) have the systems to stitch together a good service to the customer. So I would not hope for too much improvement in debtor days, although additional insurer specific protocols might be helping a bit.

I think Enterprise has now overtaken helphire as market leader in credit hire (again please correct me if I am wrong) It has the advantage of massive scale, and has even nicked an RSA contract from Ai(Quindell). It might be Enterprise that Helphire described as the aggressive financial bidder against it, and partly responsible for Helphire's woes. A combined Quindell with Ai and Helphire might have the business model and scale to take Enterprise on? Leaving two major competitors in the market, which could work fairly cooperatively and ethically with the insurance paymasters?

There is an interesting post on iii which likens HHR with the 'Zombie' companies described in an article in today's FT. A 'zombie company' is one which 'benefits' from a bank's forbearance, but that can only manage to pay the interest on its loans. It therefore stagnates. It occurs to me that IF a company such as Quindell (which shares house broker Cenkos with Helphire) could persuade Invesco to part with its 29% stake in return for Quindell shares, that the combined entity might transform Helphire's fortunes (as a subsidiary of Quindell Portfolio) I read a Cenkos note on Quindell. It can borrrow at 2.5% above base and enjoys 25% margins. It is doing what Helphire aspired to doing before it (arguably?) became a 'zombie' I am quite prepared to be persuaded that this is a fanciful idea, so please tell me why. I don't think Quindell will do anything until it gets ABS status, and any offer might be peanuts. But until the Helphire balance sheet is relieved of debt, I fear that Helphire is stuck in treacle. A massive Autofocus compensation cheque might help, but there is no sign of that anytime soon. But the prospect of this might interest a bidder along with the tax reliefs that Helphire now ought to enjoy having written off so much? The poster on iii thinks that there might be a possibility of the banks writing off some debt if shareholders stump up. But they have been burned so many times, I wonder.

Hi KNIGELK any chance you can copy me in with AGM summary? Many thanks francissaunders1@gmail.com

I am still pretty convinced that the spike was due to rumours during the Accident Exchange AXA Court of Appeal hearing, concerning Accident Exchange pursuing a much bigger claim. I hope there is corporate action imminent, but personally I doubt it. I also doubt that things will become any clearer tomorrow, and that this will be a squeaky a$*e holding job as institutions sell down. I still think that there is a good chance in the medium term though, that this gamble will pay off. P.S. I don't think Helphire wants to battle the insurers in the courts as aggressively as Accident Exchange, becuase it relies heavily on insurance companies for referrals, whereas AX has a heavy dealership and manufacturer base (I think) So even if AX pursues and makes further recoveries, how far will HHR realistically take it?

Maybe HHR not immediately placing ABI GTA debts with solicitors to litigate straight away (after 90 days - the GTA protocol limit) might be due to a more concilliatory relationship, whereby they negotiate under additional protocols insurer by insurer?

I just had a look at the debt on the balance sheet when Quindell took over Ai Solutions (ACS) as was. In June 2011 it had revenues maybe half of Helphire's and net debt of £19 million. Isn't some £40 million of HHR's debt fleet related? So although Helphire has a bit more debt relative to revenue, it is not very out of kilter with ASC. Quindell took out ASC, so is the prospect of a takeover by some entity for HHR so fanciful? Helphire has fleet management expertise, and many years of successful claims management expertise. I would have thought that Enterprise Rentacar, or any number of suitors might be having a little look at acquiring this market leader now it is leaner? Correct me if I am wrong.

'personal matter' pretty bloody obvious, and pretty damning

Given that The Board still hasn't even agreed with third parties HOW to access the dodgy disc more than four months after they agreed the court order, maybe we shouldn't hold our breaths for any settlement soon? I just don't understand why Accident Exchange has managed to gain access and has substantial claims, whilst our board is fannying about taking months having to agree how to find out how it was so badly defrauded. Unbelievable.

It doesn't look good when the directors don't want the shares (what did IR tell you about that KNIGELK?) and the institutions don't want them. Like I said earlier, are we mad or brilliant? I just can't overcome my belief that there is value here at these prices, and another company shafted by the insurance industry (Accident Exchange) seems to be making progress getting some of its money back. Quite apart from the fact that the need for accident victims hire cars, and their legal right to them has not gone away. Debt will always be high because Helphire provides CREDIT, which is why it is called credit hire, and over £40 mill of the debt is fleet finance.

Well I think this scotches the idea that the recent spike up was due to a cessation of institutional selling! Further confirmation that it was due to Accident Exchange raising the spectre of a further claim for £135 million when it was in The Court of Appeal on 30th Oct.

I scooped up a few more too at 2.02p. Are we friggin mad or brilliant?

I am pretty sure it is Henderson Global Investors

HHR does not have access to the disk like Accident Exchange has. See ADVFN. It looks like it should try to do this. Don't know if it is possible though. Or maybe HHR is snuggling up to the insurers? Maybe the insurance industry has finally tamed the credit hirers. This would be bad for consumers though, as I doubt insurers would cut premiums, and non-fault victims would not be so well taken care of.

Unfortunately I already have the Helphire tattoo from the first ascent.

The issue below endorses my theory for the rise in volume and price at the end of October. The issue of the extra damages was brought up in the Court of Appeal, which said that it would have to be decided by a different court at a different trial. But it may well be this that excited the market at the time.

Just seen this article online, makes very interesting reading! http://www.am-online.com/news/2012/11/12/accident-exchange-prepared-for-next-stage-of-autofocus-dispute/31944/ I am sure that this £135 mill is what they lost, but the problem will be proving it, and making it stick in court. Hopefully Accident Exchange's trailblazing will eventually assist Helphire in recovering money defrauded from it.

links on here to The Insurance Post will not work without subscription. But if you go to Google home page and click news, then search 'accident exchange' it should throw up links that work and give you access