F&I Management & Training

The economic downturn has pushed credit hire and claims management group Accident Exchange into the red.In six months’ trading to November 1, the company swung to an £15.4m pre-tax loss, against £6.5m profit in the same period in 2007. Turnover grew 11% to £86m.Cash collections have improved and cost-saving measures are being implemented to re-balance the business to its forecast lower market activity levels.The group has been hit by the triple blow of a slowdown in referrals, often generated by franchised dealers as customers suffer a crash, shorter credit hire rental periods due to available capacity in bodyshops, and the severe drop in residual values of the prestige vehicles.

DATED: 02.01.09

FEED: AM