UPDATE 1-Helphire fleet utilisation improves, cuts debt

* Says net debt at year-end fell to 99.9 mln stg

* Says case volume levels stabilised in the last 2 months * Says trading conditions remain challenging

* Shares rise 6.5 pct (Adds details)

July 15 (Reuters) - British accident claim handler Helphire Group Plc (HHR.L) said on Wednesday its fleet utilisation improved in the fourth quarter and that it reduced its net debt, excluding fleet-related funding, at the end of the financial year, sending its shares up 6.5 percent.

The company said its fleet utilisation improved to 80.1 percent in June from 63.6 percent in March.

"Whilst trading conditions remain challenging, particularly in the area of credit hire rental length, solid progress has been made in the key areas of focus making a positive difference to the business," the company said.

Net debt fell to 99.9 million pounds ($163.1 million) in the year ended June 30, from 151.2 million pounds on Dec. 31.

Helphire said it generated an operating cash flow of 44.5 million pounds in the second half, compared with 24.9 million pounds a year earlier.

The company said its working capital needs had reduced since its May 6 trading update, and that case volume levels and hire duration had stabilised, although at relatively lower levels compared to those achieved historically.