Birmingham car crash support firm Accident Exchange has revealed it is planning more cuts to its fleet as it continues a legal battle over inflating insurance costs.

The Coleshill-based company, which has reduced staff numbers by 275 to 458 and cut the fleet size from 4,658 vehicles to 3,240, told investors it now plans a further reduction of around 700 vehicles in the next three months.

In a statement, the group said it had strengthened working capital management over recent months and cash at bank has improved to £4.9 million from £2.9 million in four months.

Meanwhile, the firm is continuing proceedings against Autofocus in the High Court after alleging “deceit, conspiracy to cause harm by unlawful means and conspiracy to cause harm to our business” in October last year.

However, Autofocus made an application to the High Court to have the claim struck out because, it argued, it was protected by the principle of witness immunity.

In its statement, Accident Exchange quoted a Mr Justice Mackie as saying: “If the facts alleged by the claimant [Accident Exchange Limited] are true, as I must assume for the purpose of this application, it has sustained financial loss as a result of disgraceful and dishonest conduct by the employees or agents of the defendant [Autofocus].”

The case against Autofocus was listed to be next heard before the High Court on March 31.

Meanwhile, Accident Exchange also revealed vehicle finance debt had decreased by 37 per cent, to £34.1 million, compared to £54.2 million as at October 31, 2009.