£59.3m loss for accident firm Helphire

Insurers are keeping a close eye on Helphire, Britain’s largest accident management company, after it posted a £59.3m pre-tax loss for the second half of 2008.

The firm blamed declining fleet value, restructuring costs and goodwill writedowns. Pre-tax profit for that period in 2007 was £19.4m.

Helphire plans to renegotiate its banking arrangements and raise £50m through a share issue.

The Bath-based company told insurers it would claw back money from outstanding claims through increased litigation.

Chairman Richard Rose said: “The group had expanded infrastructure in anticipation of higher business volumes than materialised.”

Last month Helphire revealed plans to axe 130 of its 1,100 jobs.

Graham Gibson, claims director at Allianz, said: “When you have a writedown of that level, you have to be mindful of the impact.”