Acg Metals Regulatory News (ACG)

13 Dec 2007 14:34

Accuma Group PLC13 December 2007 Press Release 13 December 2007 Accuma Group Plc ("Accuma" or "the Group") Change of Year End Directorate Change Accuma Group Plc, a leading provider of consumer financial solutions, announcesthat the Group proposes to change its year end to 31 December 2007, shorteningthe current accounting period to 31 December 2007. The reasons for the changeare: • a December year end will more closely align the Group's year end with the inherent seasonality across the debt solutions industry: in particular, December and January are traditionally very quiet months which, with the current year end of 31 July, both fall into the first half of the financial year, thus distorting the Group's results towards the second half of the financial year; • the change of year end will also provide an opportunity for clarity in respect of both current trading, given the recent changes to the fee structure in the Group's IVA division and; • this will enable Accuma to bring in the final earn outs for Loan Line and Byrom Keeley, which will be completed by the end of July and December 2008 respectively, into the accounts for the year ending 31 December 2008. The Group has £3.8 million cash out of which £3 million is anticipated to be paid for 2007 earn out commitments in respect of Loan Line and Byrom Keeley. Ian Campbell will, by mutual consent, leave the Group on the 18 December 2007and will be replaced as Finance Director on 7 January 2008 by Edward ArmitageACA. Edward has held a number of senior roles including, most recently, therole of Finance Director and Company Secretary to Broker Assistance Limited. AtBroker Assistance Limited he was responsible for the design and implementationof a bespoke accounting system and played a key role in the successfulnegotiation and integration of a newly acquired company. The Board is pleased toannounce his appointment. The Group intends to make a further trading update towards the end of January2008, and to announce its preliminary results for the five month period ending31 December 2007 by 31 March 2008. The Group continues to process new IVA cases and remain one of the leadingvolume providers. The case bank of 6000 IVA cases provides £17.3 million offuture contracted revenue which is not shown on the Group's balance sheet butprovides highly visible cashflow. Accuma's accounting policy is conservative andonly accounts for case management fees on a monthly basis as they are received. Despite the turbulence of 2007 and the distractions of a number of unsolicitedapproaches for the business, none of which reflected the underlying value of thebusiness, the Group remains well positioned as a full platform solutionsprovider to take advantage of the current economic climate. Whilst managementbelieves that IVAs remain the most effective mechanism for dealing withsignificant debt problems, being able to provide a range of solutions will standthe Group in good stead particularly as consumers face increasing difficulty inre-financing following the credit crunch. In particular, Accuma is seeing anincreased demand for informal debt solutions through its subsidiary Byrom Keeleyand, as market conditions are expected to worsen in the year ahead, is confidentthat where an IVA is not deemed appropriate and where bankruptcy is not a viableoption, debt management will continue to serve as an effective tool forconsumers and creditors alike. Commenting on the announcement, Charles Howson, Chief Executive of Accuma Groupplc, said: "Whilst 2007 has been a difficult year for the Group, we move into2008 in a leaner, more efficient position with the uncertainty that has cloudedthe IVA market throughout 2007 removed. Moreover, I am confident that currenteconomic conditions will favour our full solutions platform and enable us todeliver sustainable growth and profitability in the future." The following information relating to Edward Armitage's appointment to the Boardis provided in accordance with Schedule 2 (g) of the AIM Rules. Previous Appointments Venture Hire Limited Broker Assistance Limited Broker Assistance Insurance Service Limited Assistance Services Limited Accident Care Limited TLA Group Limited There is no further information to disclose. - Ends - For further information:Accuma Group plcCharles Howson, Chief Executive Tel: +44 (0) 0161 751 6787charles.howson@accumagroup.com www.accumagroup.com Daniel Stewart & Company PlcLindsay Mair / Stewart Dick Tel: +44 (0) 20 7776 6550lindsay.mair@daniel.stewart.co.uk Media enquiries:AbchurchSarah Hollins / Chris Lane Tel: +44 (0) 20 7398 7700chris.lane@abchurch-group.com www.abchurch-group.com This information is provided by RNS The company news service from the London Stock Exchange