Miller Fisher calls it a day

INSURANCE services group Miller Fisher has given up its long fight for survival, telling its banks to appoint a receiver following their refusal to lend the company more money.

Miller has been involved in takeover talks and negotiations over further lines of credit for over a year. However, failure to strike a deal on either front has seen its shares fall from 89p in early 2002 to just 3 1/2p today, valuing the company at £5.7m.

The company made a £16.7m pre-tax loss last year from turnover of £45m, blaming the takeover speculation for its failure to win and retain business. Total debt at 31 December stood at £13.25m. Bank of Scotland injected £13.25m into Miller at the end of last year, taking preference shares which could be converted into a 49% stake in the group.

Miller also underwent a board restructuring in which Kevin Kenny was replaced by Malcolm Hughes as chief executive and Sir Timothy Kitson quit as chairman. Miller warned in April that its prospects were 'challenging' and its efforts to rebuild were hampered by the long lead time between winning new business and translating it into profits.