Article published by SmallCapNews Tuesday, October 02, 2007
ClearDebt, the AIM quoted company that sets up Individual Voluntary Arrangements (IVAs) for people in debt posted losses of Â£1 million in the year to 30 June as turmoil in the market impacted on the companyâ€™s growth strategy.
Despite the problems, the ClearDebt completed the acquisition of Abacus (Financial Consultants) Ltd for Â£6.2 million, and raised Â£1.9 million in debt and equity to fund the acquisition.
Chief executive David Mond said: â€œIt has been a highly eventful year. On a corporate basis we have been successful, acquiring Abacus and concluding our agreement with The Money Helper will eventually increase our IVA pipeline, but also diversified our product range into a synergistic and potentially lucrative suite.â€
Mond noted that falling levels of IVA completions had hampered the market. â€œInitial impressive success which proves ClearDebt’s ability to drive the business forward has been pulled back by the turmoil created by the major creditors’ attitude to many IVA providers and has effectively capped the industry’s capabilities,â€ he said.
â€œHowever, following negotiations, both individually and collectively through the Debt Resolution Forum, we believe that there is light at the end of the tunnel. We also believe that our low cost IVA, where income must be recognised throughout the life of the IVA, will become the industry standard and allow us to compete for market share on an effective basis – punching well above our weight.â€
Related links: ClearDebt Group plc