Information  X 
Enter a valid email address

Accident Exchange (~268)

  Print      Mail a friend       Annual reports

Thursday 28 April, 2005

Accident Exchange

Pre-close trading update

Accident Exchange Group PLC
28 April 2005

28 April 2005

        Accident Exchange Group Plc ('Accident Exchange' or 'the Group')

                            Pre-Close Trading Update

The Board of Accident Exchange is pleased to provide the following update on
trading in advance of its preliminary results for the twelve months ending 30
April 2005.

In the past 12 months the rate of growth enjoyed by the Group has been
significant in every key metric. The Board is pleased to announce that it
expects full year results to meet market expectations.

We attribute much of our growth to the strategic initiative which we implemented
during the first half of the year. This was intended to increase the
effectiveness of our sales resource and help them identify and win targeted new
accounts whilst also developing the skills and focus of our business support
team to retain and strengthen relationships with those accounts whom we already
provide with service.

A year ago the Group operated a fleet of just 225 vehicles and management had an
initial budget expectation of attaining a fleet size of 397 vehicles by the end
of April 2005.  In November 2004 as a direct result of business levels being far
better than forecast in the first half of the year, the Group reported a fleet
size of 586 vehicles against an already revised year end expectation of 690
vehicles.  In December, a further upward revision was made with an expectation
that the rental fleet would reach a figure between 800 and 850 vehicles by the
year end.

During this period, we were pleased to welcome Martin Andrews to the Board as
Finance Director bringing significant experience to the Group in this period of
rapid growth.

We are delighted to report that our fleet now stands at 926 vehicles and that
the operational utilisation of the fleet has remained in line with management
expectations throughout the year.

We are encouraged to report that the introduction of a tracking system to
monitor vehicle movements has helped improved fleet utilisation by 8.86%

Trading during the second half of the year has continued to prove robust with
the total number of hire starts some 175% higher in the second half than the
first. The Group has reported a number of key contract wins during the year and
we are in advanced stages of discussions with a number of other dealer groups.
We hope to report further progress soon but the Directors remain confident that
the growth outlook for the Group in 2006 remains positive.

Finally, we are also pleased to announce that during April 2005 we have been
honoured by the prestigious 'Institute of Transport Managers' with the award for
'Accident Management Specialist of the Year.' Not only is this recognition of
the hard work and effort of our employees, but is also confirmation and praise
for the unique and distinct service offering we deliver to our customers.

Steve Evans, Chief Executive of Accident Exchange said:
'As we enter our second financial year of trading on AIM we are optimistic about
the Company's prospects. Given the quality of our people and the strength of our
products and service and our current level of trading, together with our healthy
pipeline of new business prospects and the level of organic growth we have
demonstrated that we can generate from our account base, we look forward to 2006
with confidence of delivering another year of significant growth.'


For more information please contact:

Steve Evans, Chief Executive, Accident Exchange Group plc
Tel:  08700 116719

Martin Andrews, Finance Director, Accident Exchange Group plc
Tel: 08700 053649

Jonathon Brill/Billy Clegg, Financial Dynamics
Tel: 020 7831 3113

Notes to Editors

About Accident Exchange

Accident Exchange was formed in 2001 to provide ABI (Association of British
Insurers) approved car hire on credit to motorists of prestige cars involved in
non-fault accidents.

Having listed on AIM in April 2004, the Company has grown its car rental fleet
rapidly from 250 to over 800.  The Company reported maiden interim results for
the period ended 31st October 2004. Turnover increased significantly to £7.670
million (2003: £1.136 million, profit before taxation was up to £2.133 million
(2003: £0.303 million, profit before taxation and goodwill amortisation was up
to £2.461 million (2003: £0.303 million), with earnings per share up to 2.3p
(2003: 0.4p). The Company recommended its first interim dividend of 0.5p (2003:

                      This information is provided by RNS
            The company news service from the London Stock Exchange