Helphire hit by the cost of petrol

The group, which provides cars and handles claims for blameless drivers involved in accidents, said current year expectations could be hit if it fails to see a pick-up in its busier winter period.

Its cautious outlook comes despite annual results revealing a marked turnaround in the year to June 30, when it swung back into profit by 392,000 against losses of 149m last time.

Helphire has been hit in recent years by the loss of major accounts, as well as a trend amid the recession for fewer road miles to be driven, which in turn means less road traffic accidents.

The Bath-based group has been leading a revival plan to slash costs, pulling out of less-profitable contracts, axing 1,200 staff since 2008 and increasing recovery rates of money owed.

In April last year, the firm moved to ease the short-term funding pressure on the business through a 50m share placing, and its chief executive stepped down.

It said yesterday it was considering targeted expansion again as it reaches the end of its recovery plan, while the group is also signing up a major financial services brand as a new client.

However, it warned "conditions are not favourable" as the economic recovery has failed to see a marked rise in the numbers of cars on the road, compounded by price hikes on the petrol forecourts.