Managing director Ron Sutton said: 'The problem is, we are struggling to make money as a stand-alone accident management company, and if we can't make money from it, no-one can. To stand alone in accident management is not possible - it has to be part of a one-stop-shop fleet management package.'

He added that competition from accident management companies backed by motor manufacturers, breakdown and recovery operators, or leasing and fleet management companies has made business untenable for independents. These companies lower the perceived value of accident management by offering it as a free or low cost service to customers, said Sutton.

Last week Drivemaster wrote to its repairers, informing them that its cash flow problems were making it difficult to meet payment due dates, and advising them to invoice fleets or insurers directly for any repair bills, rather than channel invoices via Drivemaster.