Booming vehicle replacement business Accident Exchange expects to nearly double its Midlands staffing levels to 700 by next April.

Chief executive Steve Evans told The Birmingham Post the Coleshill operation was launched in 2002 by a team of six with a turnover of £700,000.

It now employs 427 people in the Midlands, Warrington and Glasgow - and yesterday revealed turnover up to £53 million.

Mr Evans said: "We're dead chuffed with what we've managed to do."

The Aim-listed business is planning to join the main London Stock Exchange by the end of this calendar year.

The company has grown so rapidly that it was forced to split the operation into nine sites, all within a mile of each other.

It has now moved four parts of the business into a new main operation at Hams Hall and the remaining five will go on site in September.

The complex - known as Alpha 1 - is large enough to accommodate staffing levels up to 1,000.

Mr Evans said: "We anticipate employing 700 people there by next April so we are starting to get close."

It currently employs around 370 people in the Midlands.

Accident Exchange operates by developing relationships with franchise dealers, dealer groups and manufacturers.

They in turn introduce Accident Exchange to their customers who need a replacement vehicle following damage in an accident which was not their fault.

Mr Evans said: "There are four million accidents a year and we dealt with 50,000 claims, so the potential for growth is apparent."

The business said the announcement last week of an exclusive relationship with Audi UK was an example of how it had consolidated its position.

It yesterday reported a jump in pretax profit for the year to April 30 to £7.9 million from £6.7 million and said it was confident of a further year of strong performance ahead.

The group said the results reflected strong organic growth.

Turnover in the year was up 147 per cent to £53.5 million from £21.7 million.

Just after the end of the financial year, the company acquired Cheshire-based automotive software provider DCML for a maximum of £12 million.

Accident Exchange will pay an initial £8 million in cash and shares and an extra £4 million dependent on DCML meeting financial targets. The firm develops software used to manage courtesy car fleets and their insurance.

Accident Exchange also revealed yesterday that non-executive chairman Lord Young of Graffham was to retire at the forthcoming Annual General Meeting on July 20.

David Galloway will then assume the role of non-executive chairman, having joined the board nearly a year ago as deputy chairman.

Lord Young said the group had an excellent pipeline of potential new referral agreements with leading motor dealerships and car manufacturers and expects to strengthen relationships with insurance companies.

"The board is confident of achieving a further year of strong performance."