6 Aug 2008 07:00
| FOR IMMEDIATE RELEASE | 6 August 2008 |
Accident Exchange Group Plc
("Accident Exchange" or the "Company")
ANNUAL GENERAL MEETING AND INTERIM MANAGEMENT STATEMENT
The Board of Accident Exchange is today releasing its Annual General Meeting and Interim Management Statement for the trading period from 1 May 2008 to 31 July 2008.
The following statement will be read by the Chairman at the Annual General Meeting of the Company being held today at 11:00 am at the offices of DLA Piper UK LLP, Victoria Square House, Victoria Square, Birmingham, B2 4DL. The result of the voting on all resolutions will be announced later today.
"Trading in the first quarter of the year has been in line with management's expectations. Rental days in the first quarter increased to 307,000 compared to 251,000 for the same period last year and were little changed from 311,000 in the seasonally strong preceding quarter. Utilisation for the first quarter of the year has improved to 65% from 61% in the comparative period last year and 64% in the preceding quarter. The proportion of prestige vehicle revenue has also recovered to 82% in the first quarter from 80% in the preceding quarter and 81% in the comparative period last year. Margins have benefited from these operational improvements and also from the effect of improved hire rates with effect from 1 June 2008 as a result of the agreed 3.5% increase in rental day rates under the ABI General Terms of Agreement.
"Working capital headroom at 31 July 2008 remains strong at £28.9 million with an incremental £0.6m vehicle disposal proceeds due at the quarter end. The Board continues to expect further improvement in cash collection rates and is seeing the benefits of the litigation strategy which was initiated in January 2008. Collections carried out internally were £33.0m in the first quarter compared to £26.8m in the comparative period last year and £33.2m recorded in the preceding quarter. Cash collected from our litigation panel was £6.6m in the first quarter compared to £1.4m in the comparative period last year and £4.8m recorded in the preceding quarter."
ENDS
CONTACTS:
| Accident Exchange Group Plc | |
| Steve Evans, Chief Executive | 08700-116 719 |
| Martin Andrews, Group Finance Director | 08700-053 649 |
| Landsbanki Securities (UK) Ltd | 020-7426-9000 |
| Shaun Dobson or Tom Hulme | |
| Bankside | |
| Steve Liebmann or Simon Bloomfield | 020-7367-8888 |
About Accident Exchange
Based in Coleshill, West Midlands, Accident Exchange delivers accident management and other solutions to automotive and insurance related sectors. Fully listed, the stock code is LSE: ACE. For further information on Accident Exchange, please visit the company's website: www.accidentexchange.com.