Accident Exchange warns of H1 loss

And the firm says it needs to refinance as insurers continue to defer payments.

It said cash collection and settlement levels may be lower than expected, which could mean it breaches its loan covenants and existing facilities.

The group now intends to refocus activities on its higher margin prestige automotive and manufacturer referral partners, historically the mainstay of operations.

It said: "Over the next few months we will therefore reduce the size of our mainstream fleet further, thereby commencing materially fewer lower margin mainstream hire starts and reducing the working capital requirements of the business."

It says annualised reductions in fleet and employment related costs of around 24m are targeted to be attained by the end of the current financial year.

Story provided by Business Financial Newswire