The collapse of insurance company Independent Insurance Group will cost UK rental company Baldwins Industrial Services £1m ($1.43m), the company has warned.
In a statement issued on 24 July, Baldwins said that the failure of Independent had necessitated it to put in place new insurance cover to replace certain policies which were held with Independent.
Baldwins faces the cost of the new policies, the cost of interim cover, outstanding and potentially uncovered claims, and the cost of raising the excess on the new policies to £250,000 from the £30,000 excess which related to the policies with Independent.
‘Taking all these factors into account, the board has estimated that the failure of Independent will have a negative impact on the Company’s results for the year to 31 March 2002 of approximately £1.0m,’ the company said.
In the year ending 31 March 2001 Baldwins reported sales of £76.5m ($107m), an operating profit of £11.4m ($16m), and EBITDA – earnings before interest, taxation, depreciation and amortisation – of £23.4m ($32.7m).
