UPDATE 2-Helphire posts FY loss; sees turnaround on cost-cuts

* Says current year trading in line with its view

* Says to benefit from restructuring plan

* Says to cut 700 more jobs

* Lowers net debt to 239.5 mln stg from 362.3 mln stg

* Shares rise 2.3 pct (Recasts; adds MD, analyst comments, updates share price)

By Kumar Alagappan

BANGALORE, Oct 2 (Reuters) - British accident-claim handler Helphire Group Plc (HHR.L) posted a full-year pretax loss mainly due to non-cash exceptional charges and scrapped its dividend this year, but said it expected to benefit from its turnaround plan.

Shares of the company opened up 2.3 percent, before paring some gains to trade up 1.1 percent at 44.5 pence on Friday on the London Stock Exchange.

"It isn't a pretty picture at the moment but there is clear and decisive action from management with visible evidence of success," Shore Capital Stockbrokers analyst Eamonn Flanagan told Reuters in an email.

Helphire, which works with the insurance and motor industries to provide vehicles to motorists involved in accidents until their own vehicles are repaired or replaced, said the current year's trading was in line with its expectations and it was continuing to generate operating cash.

Helphire sees lower operating expenses year-on-year, while its fleet utilisation is expected to improve to 80 percent from 70 percent, Managing Director Martin Ward told Reuters by phone.

"This is a turnaround position where we are stripping substantial costs out of the business and getting synergy from that," he said.

Helphire, which shed about 750 jobs in the current calendar year until August, is planning to cut another 700 jobs, reducing its total employee strength to about 1,500, he said.

"We have currently 700 further positions under notice of redundancy in the organisation, of which we expect 400 to leave the business during this calendar year," Ward said.

He said revenue in the current financial year ending June 2010 will be down from last year due to the loss of "one or two customers", but higher margins and lower operating costs will more than offset the drop in revenue.

POSTS FY PRETAX LOSS

Helphire, which competes with Accident Exchange (ACEX.L), reported a full-year pretax loss of 149 million pounds, compared with a pretax profit of 43 million pounds last year.

Adjusted operating profit before tax dropped to 4.7 million pounds from 55.4 million pounds a year earlier.

The company, which paid a dividend of 12.3 pence per share for the year ended June 30, 2008, said exceptional charges soared to 143.8 million pounds from 3.6 million pounds, partly due to a revised estimate of settlement of receivables.

The company reduced its net debt to 239.5 million pounds ($381.2 million) from 362.3 million pounds at the end of the previous year.

($1=.6282 Pound) (Reporting by Kumar Alagappan in Bangalore; Editing by Vinu Pilakkott, Anne Pallivathuckal)