Aston Rothbury Factors Limited’s latest financial statement, for the year ended 31 March 2002, attributed the company’s decrease in profit to a provision made against debts arising within the credit hire sector, which one of Aston Rothbury’s clients operates within. The company reported a decrease in profit before tax to Ј64,351 for the 12 months ended 31 March 2002 compared with Ј218,300 for the 15 months ended 31 March 2001.
Companies involved in the credit hire sector offer hire cars, often through an accident management specialist, to car accident victims until their own vehicle is repaired or the insurer supplies a substitute vehicle. The third-party insurer is subsequently asked to pay for the hire of the vehicle.
Aston Rothbury has made a provision for bad debt because of the problems with the third-party insurance companies paying for the hire of vehicles. Third-party insurers normally pay for the car hire, but are currently disputing hire agreements...
