The Company provides replacement vehicles on a credit hire basis to drivers of prestige motor cars involved in a non-fault accident whilst their own vehicle is being repaired, with the hire charge concerned being recovered from the responsible party’s insurer.
The Company was incorporated on 5 November 1998 and listed on the Alternative Investment Market of the London Stock Exchange on 25 September 2003.
Aim Quotation Cancellation:
On 24 September 2007, it was annoinced that the difficult trading conditions mentioned in the 2006 annual report have continued into the first half of 2007. In the annual statement it mentioned the fact that Bristol & London had incurred substantial costs in increasing the number of exotic vehicles in their fleet such as Aston Martin, Rolls Royce, Bentley, Ferrari and Lamborghini in anticipation of a significant level of new business with a major UK motor insurance company. Despite initial revenues being below expectations, the board was confident that this arrangement would eventually generate significant income. However a formal contract did not materialise and it became apparent that this business was not going to grow as
In order to reduce costs, the decision was made to dispose of a number of these vehicles, which had been considerably under-utilised, resulting in continuing losses. This decision was vindicated when in July, they were informed that the arrangement to supply exotic vehicles would be terminated with effect from April 2008.
In view of the position that the Company now finds itself in, the Directors are of the opinion, following consultation with their advisers that it would be in the Company’s best interest for it to cancel the AIM quotation and to offer existing shareholders the opportunity to sell their shares back to the Company.
The share buy back will be subject to shareholder approval and is expected to be conducted at a price per share which is the average mid-market price per share for the three months prior to the date of the circular.
The background to the proposal is the substantial reduction in the price at which the Company’s shares have been trading on AIM, which has occurred since the announcement in August 2006 that the company’s profits for the year ended January 2007 would not reach market expectations. Since that announcement, there have been further announcements concerning difficulties which the Company has encountered, including the failure to enter into arrangements with the major UK insurance company outlined above. The Board has formed the view that the
market has lost confidence in the Company and that, accordingly, any recovery which may occur in the Company’s financial performance is unlikely to be properly reflected in the price at which the Company’s shares trade on AIM.
The market in the Company’s shares is illiquid and the Company’s share price has fallen to an all time low of 8.5p. Additionally, The Board has reached the conclusion that the advantages which attach to the facility to trade the Company’s shares on AIM do not outweigh the costs and other disadvantages.
The Board are confident that the prospects for the Company remain strong and believe that the business will have greater opportunity in the longer term to develop and expand away from a publicly quoted environment.
Bristol & London announced that at its EGM held on 17 December 2007 the special resolutions to approve the Company’s share buy back and to cancel Bristol & London’s admission to the AIM market of the London Stock Exchange plc were passed.
Cancellation of admission of the Company’s ordinary shares to trading on AIM became effective on 28 December 2007.
Bristol & London Plc, formerly known as Bristol & London Accident Management Plc, is engaged in the provision of replacement vehicles to drivers of prestige cars involved in non-fault accidents. These services are offered under credit hire agreements where hire charges are met by the insurer. The company, with registered office in Portishead, United Kingdom, was incorporated in November 1998. It is publicly traded on the London Stock Exchange under the trading symbol BTL.
Bristol & London is the UK’s leading provider of prestige car replacements and the leading specialist prestige motor credit hire company in the country. The company owns and manages an extensive fleet of quality vehicles, including the latest models from Aston Martin, Audi, Bentley BMW, Ferrari, Jaguar, Land Rover, Mercedes-Benz, and Porsche. The company’s customers include some of the largest UK insurance companies, motor groups and accident repairers.
In May 2006, the company signed an exclusive two-year contract to provide accident management services to TVR drivers through TVR’s fifteen dealer outlets and eight approved repair centers. The company also has entered into an agreement with Eastern Western Motor Group to supply Accident Management Programme. The Accident Management Programme aims to alleviate some of the stress and anxiety experienced by drivers following an accident.
Group or Branch:
CARSTAR ACCIDENT MANAGEMENT LIMITED
Harbour Court BS20 7GB, PORTISHEAD, UNITED KINGDOM
+44 1275 84 11 11
+44 1275 84 00 11