ClearDebt Group plc six month interim results December 2010

ClearDebt Group plc (“ClearDebt” or “the Group”) Unaudited Interim Results for the six months ended 31 December 2010

ClearDebt, the AIM quoted personal debt resolution adviser is pleased to announce its Interim Results for the six months ended 31 December 2010. The period saw significant growth in EBITDA and revenues, driven by a strong growth in the provision of Individual Voluntary Arrangements (“IVAs”). The Directors expect continued growth to the year-end and for the foreseeable future on the basis of the much-publicised expected ongoing levels of personal debt in the UK. The Group is expected to benefit from this as it continues to demonstrate the strong operational success it has enjoyed since its inception.

Financial Highlights:

  • Revenues increased to £3.97m (2009: £2.27m) up 75%
  • EBITDA of £1,156,849 (2009: £438,097) up 164%

Operational Highlights:

  • Significant increase in number of IVAs passed:

761 agreed in period, more than 100% increase (2009: 350)

  • Alternative cash flow/business diversity continues to be provided by Abacus, the Group’s debt management arm which now has 6,345 debt management plans providing income.

Outlook

  • Continued organic growth to drive increased profits; potential growth from acquisitions
  • Number of IVAs passed continues to increase and future looks highly positive

  • Pipeline of new business suggests strong continued growth through to the year-end
  • Current economic environment continues to create increasing demand for personal debt resolution and will continue for the foreseeable future.
  • Negotiations ongoing with new referral partners to provide an increased level of IVA referrals.
  • The IVA and debt management industry provides many opportunities for a consolidator to drive growth from acquisitions

David Mond, CEO of ClearDebt commented:

ClearDebt has now successfully integrated the Relax acquisition and is ready to benefit by virtue of our strong operational performance. Whilst the combination of the nation’s addiction to personal credit and the continued tough economic outlook have created personal tragedies for many, ClearDebt continues to provide a manageable and compassionate solution to personal debt.

This situation does not look likely to change any time soon. Our continued operational strength is largely down to our unparalleled kaizen based system that has allowed us to grow from processing 10 IVAs a month 4 years ago to 150+ now. We are confident that we will be able to provide not only further organic growth, building on our genuine success, but also take on IVAs set up by other providers which are not as well organised as ClearDebt and which may be looking to exit an overcrowded market.

Please see pdf link for full Interim results:
ClearDebt Group six month Interim results December 2010

For further information, please contact:
ClearDebt Group plc
David Mond, Chief Executive Officer
Tel No: 0161 968 6805

Seymour Pierce Limited
(Broker and Nominated Adviser)
John Cowie or Guy Peters, David Banks or Katie Ratner
Tel No: 020 7107 8000

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