Safer roads hit firm's profits

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Fewer collisions on the roads and an associated fall in car insurance claims have left vehicle crash repair firm Just Car Clinics facing financial difficulty.

The company, which employs 620 staff at 23 locations, said its pre-tax profits had fallen 13% to £563,000, blaming the recession for a change in the willingness of drivers to make insurance claims and pay higher premiums. Like-for-like turnover also fell by four per cent.

The company sought to minimise any damage by offering light repair and cosmetic work to its customers and by raising revenue 1.9% to £21.6m through its acquisitions programme. It also reduced operating costs from 39.1 per cent of sales to 38.4%.

Chairman David Hickey said: "Mandatory vehicle insurance means that the accident repair market is broadly insulated from the wider economic climate.

"However, reduced road usage has resulted in fewer collisions and this together with reluctance by retail customers to incur insurance excess payments, has adversely affected volumes across the industry."

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