On Monday March 27, 2006, ClearDebt Group PLC announced its interim results for the six months to 31 December 2005. A Pdf file can be downloaded from this page, or for this and other financial information, please go to the ClearDebt Group PLC website

The following is an extract from the ClearDebt chief executive’s statement:

TRADING UPDATE

The Directors believe that ClearDebt has an identifiably different business model compared to that of its competitors. ClearDebt is predominantly web-based and mainly attracts its customers through that same medium by way of natural search, search engine optimisation, cost per click, recommendations and email newsletters, although it has begun a more active marketing campaign, as detailed below.

ClearDebt only recognises a case at the time an individual’s IVA is approved at the creditors meeting. ClearDebt also ensures that its customers are met by an independent, experienced insolvency practitioner (or by an experienced member of their staff), a step which complies with relevant current law and best practice. The directors believe this approach is important in ensuring that few cases fail at the initial creditors meeting and also facilitates the IVA continuing to its termination date.

Between April 2005 and 15 January 2006 the number of people completing ClearDebt’s on-line “Debt Analyser” was 7,533. On 16 January 2006, ClearDebt embarked on a media campaign to establish brand awareness and also to encourage more activity on the website, with the introduction of “Debt is a Monster – Tame it”. This campaign took the form of two thirty-second radio advertisements, full colour advertisements in certain national and local newspapers, and tube and tram cards. As at 15 March 2006, a further 5,150 people had completed the on-line “Debt Analyser” taking the total to over 12,600.

Since April 2005, this activity has resulted in the following number of IVAs:

Number of IVAs

Period ended 30 June 2005 7
Quarter to 30 September 2005 23
Quarter to 31 December 2005 35

As at 15 March 2006, information collated from financially impaired debtors using the ClearDebt system indicated that this advertising campaign had prompted a further 138 applications for which creditor meetings have either been held or are currently being arranged.

ClearDebt is also pleased to report that since April 2005 only 1 case has been rejected at a creditors’ meeting. Furthermore it has had to fail only 5 cases (because the relevant debtors failed to meet their monthly contributions).

A Pdf of the full RNS announcement can be downloaded from this page.