ACE.L Regulatory News (ACE)

21 Aug 2007 07:00

Accident Exchange Group PLC21 August 2007 FOR IMMEDIATE RELEASE 21 August 2007 Accident Exchange Group Plc ANNUAL GENERAL MEETING AND INTERIM MANAGEMENT STATEMENT Accident Exchange Group Plc ("Accident Exchange" or the "Group") is holding itsAnnual General Meeting at 11.00 am today and is publishing the Group's InterimManagement Statement for the period from 1 May to 31 July 2007 as required bythe UK Listing Authority's Disclosure and Transparency Rules. Accident Exchange is a leading provider of accident management and othersolutions to the automotive and insurance related sectors. Cash flow and legal challenge update On 15 June 2007 the Group announced that new banking facilities of £45.0 millionhad been agreed with Morgan Stanley Bank International Limited. As at 31 July2007 £35.0 million of this facility had been drawn down, offset by cash in handon the same date of £6.8 million hence aggregating to total facility headroom of£16.8 million which excludes the expected receipt of the £9.5 million bulksettlement referred to below. Although cash collections were slightly behind the Board's expectations for thequarter ended 31 July 2007, during August 2007 the Group has reached agreementwith a major UK based insurer for a block settlement of approximately £9.5million. On receipt of this settlement, which is expected by the end of thismonth, cash collections for the first four months are forecast to be ahead ofthe Board's expectations for the period. Negotiations with other insurers inrespect of bulk settlements continue. In line with its stated intention the Group continues to litigate claims againstthose insurers who do not remit payment within acceptable time periods. At 31July 2007 we had 7,532 files with solicitors compared to 6,891 at 30 June 2007.This process is designed to further improve expected cash settlements. In relation to the legal challenge reported in the Annual Report and Accountsfor the year ended 31 April 2007, two cases have now been heard to conclusionand we expect judgement in both cases in the very near future. Based on theopinion of our legal team, we remain confident of the outcome. Trading Trading has been broadly in line with the Board's expectations for the quarterended 31 July 2007. The Group delivered 251,000 rental days, up 87% on thecomparative period (quarter ended 31 July 2006: 134,000 rental days) and up 13%on the previous quarter (quarter ended 30 April 2007: 222,000 rental days). The mix of business in the period represents a continuation of the trend in theprevious quarter while measures to re-balance the revenue mix take effect.Accordingly, prestige rental days comprised 55% of the total compared to 56% inthe quarter ended 30 April 2007 and 70% in the comparative quarter ended 31 July2006. Management's focus remains on improving this ratio. The Rentable fleet at 31 July 2007 stood at 4,433 (30 April 2007: 4,033) withfleet utilisation in the quarter ranging from 55% to 76% across the variousprimary vehicle bandings (previous quarter 58% to 76%). Outlook David Galloway, Non-Executive Chairman stated: "The financial year has started broadly in line with our expectations and weremain confident of continued growth in the business during the current year.Focus remains on revenue mix and margin improvement; cash collections continueto improve and we look forward to the successful resolution of the legalchallenge. Whilst this is awaited, the Board continues to monitor and review theappropriateness of the Group's financial structure." CONTACTS: Accident Exchange Group PlcSteve Evans, Chief Executive 08700-116 719Martin Andrews, Group Finance Director 08700-053 649 Numis Securities Ltd 020-7260-1000Charles Farquhar, Corporate Broking BanksideSteve Liebmann or Simon Bloomfield 020-7367-8888 About Accident Exchange Based in Coleshill, West Midlands, Accident Exchange delivers accidentmanagement and other solutions to automotive and insurance related sectors. Fully listed, the stock code is LSE: ACE. This Interim Management Statement may contain "forward-looking statements". Bytheir nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances. Many of these risks anduncertainties relate to factors beyond Accident Exchange's control or whichcannot be estimated precisely, such as future market conditions and thebehaviour of other market participants. Actual outcomes and results maytherefore differ materially from any outcomes or results expressed or implied byany such forward-looking statements. Nothing in this Interim Management Statement is intended to be a profitforecast. This information is provided by RNS The company news service from the London Stock Exchange