THE BUSINESS
Vehicle rental

ACCIDENT group Helphire rents courtesy vehicles to people who have been in traffic accidents but are not to blame. The bill is paid by the insurance company of the driver who is liable. Its success has led the firm to expand rapidly. In 2007 the size of its car fleet was doubled to 20,000 vehicles, though this meant taking on more debt. Helphire missed profit forecasts at the end of February and its shares have since fallen 64% as the market has become concerned about debt levels.

THE CHIEF EXECUTIVE
Mark Jackson

EXPANSION led to a doubling of debt last year to nearly £350m. The company has had to wait up to 18 months for some customers to pay. Helphire has said debt levels are manageable, but last week it warned the market would slow. It then abruptly announced it would raise £45m in a rights issue. Chief executive Mark Jackson also said he would step down. About 20% of the stock is with short-sellers who are betting the shares will fall further.

THE ISSUE
Financial stability

HELPHIRE’s cash-raising removes the uncertainty over its financial position for the time being, but it is likely to come at the expense of growth.

The company will now refocus its efforts on operational efficiency and collecting cash from customers. This will be largely reliant on the ability of new financial director Mark Adams. If he makes progress on these issues, the financial position should become more stable.

THE BOARD
Chairman: Rodney Baker-Bates

HELPHIRE chairman Rodney Baker-Bates was recently made chairman of Britannia building society. He was previously chief executive of Prudential Financial Services and a BBC financial director. Nonexecutive director Roger Taylor is the longest-serving board member since his arrival in 2000. He is also chairman of the insurer Amlin. Reiner Hagemann, a former executive with the German insurer Allianz, was appointed in April.

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