Helphire is the company that was set up to offer cars to motorists involved in accidents that were not their fault, but the financial crisis appears to have taken its toll on the company as higher fuel prices mean fewer cars on the roads and fewer accidents.
Also the stock of cars that Helphire offer to clients have been hit by the falling value of second hand car prices, cutting the residual values on the balance sheet. The company has also warned investors that it has been hit with £82million of exceptional charges for the first six months of 2009.
The most recent development sees the company losing its biggest contract with Arcomas the owner of AA and Saga, which accounts for a fifth of the Helphire business.
Helphire say that they have re-signed two big customers who will replace about a third of the Arcomas business for the next three years. The company says that talks with Acromas are continuing and they expect to do other business with AA and Saga.
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