And the CHC announces acquisition of legal firm New Law

Credit hire company (CHC) Helphire has reported profit before tax of £4.2m for 2013, up from £0.5m in 2012.

However, the number of hire cases managed by Helphire reduced by 17.4% to 54,500, with 7,400 of the lost cases from the direct hire business.

Credit hire cases were down 7.9%.

Despite the increase in profit, revenues were down 16% to £92.3m (2012: £109.9m), which the CHC attributed mainly to the ban on referral fees. This ban represented an £11.4m drop in revenues.

The CHC has also completed the acquisition of law firm New Law in a £24.5m deal.

New Law specialises in road traffic incident (RTA) personal injury, wills and probate.

The wider New Law Group also includes medical reporting, costs drafting and employment law advice.

Last year New Law achieved profits of £7m on sales of £29.4m.

Helphire chief executive Martin Ward said: “After working with New Law for many years, we are delighted to have secured a first class and well-established legal services business together with its management team. This addition to the Helphire group supports our strategic direction to broaden the scope of services we offer in related markets and we look forward to building on our more recent success”.

New Law chief executive Helen Molyneux said: “We chose Helphire as a partner because it has established quality credentials, the right approach to business, both strategically and culturally, and a shared vision of the future. The legal services market has undergone enormous change over the last two years which has opened up new opportunities for different businesses to work together in this sector.

“The combination of Helphire and New Law represents a rewarding and exciting opportunity for the combined businesses.”