Helphire chief executive exits amid cash call

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails

Sign up to our free breaking news emails

Please enter a valid email address

Please enter a valid email address

SIGN UP

I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy

Helphire, the accident claim group, is launching a £50m rights issue to shore up its working capital and Mark Adams, the chief executive, is stepping down.

More than 151 million shares have been placed with institutional investors at an 11 per cent discount to the company's Wednesday closing price.

Richard Rose, the chairman, said: "Along with the rest of the new management team at Helphire, I am clear about the plan for improving the group's profitability and cash generation.

"Tough decisions are being made, implementation of the plan is well under way and the fundraising will provide us with the resources we need to complete it."

The group saw pre-tax profits plummet by 86 per cent in the six months to December and is implementing stringent cuts including more than 200 job cuts and the disposal of 2,000 vehicles from its fleet.

Helphire's banks relaxed its debt covenants in advance of the placing in expectation of the additional funding. The group now expects to exceed its annual £5m cost reduction target.