Helphire improves in 2009 half year

Credit hire firm Helpire has posted a statutory loss before tax of £0.4m (2008: £59.3m loss) for the six months ended 31 December 2009.

The group reported an adjusted operating profit increase of 12.4% to £10m (2008: £8.9m).

Helphire also reported a net debt reduction of £30.4m to £209.1m (2008: £347.7m) since 30 June 2009.

Adjusted profit before tax increased 90% to £5.7m (2008: £3m).

The group also reported a net operating cash inflow of £20.2m (2008: £2.9m outflow).

Unutilised fleet and working capital bank facilities were £44.6m at the end of 2009, with fleet utilisation averaging 85.7% in the six month period to 31 December 2009 (2008: 72.0%).

The group said of its £6m exceptional costs, £5.7m related to continued restructuring costs and were "in line with our previous estimates." Headcount in the six month period reduced by 453.

Group managing director Martin Ward, said: "The results at the interim stage show the emerging benefits of the turnaround plan put in place in the early part of 2009. The Group has achieved a significant ongoing reduction in its working capital requirements, improved operating profit and, after operating cash outflows and debt interest payments, seen a net positive inflow of cash.

"Net debt, including fleet, has decreased by a further £30.4m since June 2009. The cost base continues to be addressed with an annualised reduction of £44.0m since December 2008. Although there is more to be done to reach our desired state, these results should be seen as early signs of improvement in the business."