Future of Claims Direct is in doubt

The future of Claims Direct has been thrown into doubt after its shares were suspended in the City.

The Telford-based group's shares were frozen on the stock market at 3¼p pending "clarification of the company's financial position".

A spokesman says he's unable to comment ahead of a statement later today and refuses to say whether the company is on the brink of receivership.

Last week, Claims Direct warned it needed further cash to secure its future despite selling three subsidiaries for £2.9 million after costs.

It is already expected to report pre-tax losses of around £22 million for the recent financial year to March 31, up from £20 million a year ago.

The company has suffered from lower than expected numbers of new compensation cases and delays in arranging new insurance cover for clients.