Ai says credit hire margins cut

Ai Claims Solutions has announced half yearly turnover up 25% but says margins are being squeezed by insurers.

Highlights:

• Revenue increased by 25% to £24.0m (2007: £19.2m).
• EBITDA before re-structuring costs increased by 14.4%.
• Adjusted PBT reduced by 13.5% to £713k - before IFRS 2 charges (2007: £824k).
• Gross margin of 30.5% (2007: 31.8%).
• Total net borrowings of £6.1m (30 June 2008: £2.9m).
• Debtor days of 91 days (30 June 2008: 82 days).
• Interim dividend of 0.26p per share (2007: 0.26p).

Steve Broughton, chairman, said: “The economic climate remains challenging to consumers and to the insurance market generally; and looks set to remain so for the foreseeable future. All the large insurers have now adopted Credit Hire as a solution to the provision of 'like for like' replacement vehicles to their 'not at fault' customers. Insurers are seeing credit hire as a means of securing revenue to mitigate the increase in third party costs. Across the market, business has been secured at lower margins than historically witnessed in the sector, and our efficient operational and financial platform is critical to competing successfully.”