Helphire cuts 400 more jobs

Accident claims handler Help-hire revealed a further 400 job losses yesterday as it reported a 37 per cent plunge in half-year profits.

The company, which provides cars and handles claims for blameless drivers involved in accidents, said underlying pre-tax profits slid to 3.6 million in the final six months of 2010, from 5.7m a year earlier.

The group hopes for a stronger second half, but has warned of challenges as record petrol prices and economic pressures keep drivers off the road and lead to lower accident rates.

The firm has also been hit by the loss of major accounts in recent years that forced it into a revival plan to slash costs.

Helphire has halved its workforce by cutting just over 1,600 jobs since launching the cost-cutting drive in 2008, with further "small reductions" planned.

Chief executive Martin Ward said the group was now a "smaller, more efficient and more tightly managed business".

Helphire's shares last night closed down 18 per cent or 3.1p at 14.25p.