The Ellen Group posts an operating loss of just over £1m for the nine months ending December 31, 2000.

Last May the credit hire and accident management operator, which is listed on the Oftex share index, suffered after the House of Lords ruled in the test case Dimond vs Lovell that companies must charge the market rate for replacement cars.

The market rate is set by the Association of British Insurers.

Ellen said: “This has had a consequent adverse impact on company cash flows.”

The profits warning coincided with the resignation of finance director and company chairman Allan Hoole.

A provision of £1.7m has been made against trade debtors.