Neil Woodford leads board overhaul at Helphire

Invesco, which controls 29.81pc of Helphire's shares, is understood to have lost patience with the company's management team following a series of heavy losses.

Mr Woodford is thought to have been backed by other leading shareholders in the group including Schroders and Aviva Investors. Shareholder discontent led to the resignations of Richard Rose as chairman as well as two non-executive directors – including former Conservative Party leader Michael Howard.

Shares in the company closed up 0.48 – or 19.28pc – at 3.11p following the changes. Helphire has appointed Avril Palmer-Baunack to replace Mr Rose. She will lead a strategic review, with the results expected to be announced over the next three to four months.

News of the overhaul came as Helphire reported a £34.1 pre-tax loss in the year to June 30. Martin Ward, group managing director, admitted it had been a "challenging year" for the group.

In June, Helphire admitted it had found a £27m shortfall on its balance sheet and made fresh writedowns on parts of its business following an investigation by KPMG auditors.

Helphire rents replacement vehicles to motorists while their own cars are repaired or replaced following accidents. Having rented out the replacement vehicle, it recovers the cost from the insurance of the driver deemed to be at fault. The company has suffered as insurers resist paying for the hire cars.