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Falling crash numbers hit car firm

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A vehicle crash repair firm has said revenues have come under pressure as fewer drivers use the roads as a result of the recession, meaning less collisions are taking place.

Just Car Clinics added that fewer people are claiming for accident damage in a bid to avoid paying car insurance excesses.

The firm announced a 4% drop in the interim like-for-like turnover, and revealed pre-tax profits fell by 13% to £563,000. Total revenues rose 1.9% to £21.6 million as a result of acquisitions.

Chairman David Hickey said the vehicle insurance industry is "broadly insulated from the wider economic climate".

But he added: "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."

The company sought to offset pressure by extending its offering to include light cosmetic repairs, tyre fitting and car servicing.

© Press Association 2009