Frp Advisory Group Regulatory News (FRP)

30 Nov 2006 07:01

Debt Free Direct Group PLC30 November 2006 30 November 2006 DEBT FREE DIRECT GROUP PLC FSA APPROVAL GRANTED FOR DFD MORTGAGES LIMITED Debt Free Direct Group (DFD), the leading debt advice and solutions company,today releases an update with regard to further progress for DFD's re-mortgagingbusiness, DFD Mortgages Limited. Increasing profitability from the DFD re-mortgage broking business We are delighted to announce that FSA approval has been granted to take ourre-mortgage broking business in-house over the coming months, and expect that itwill be fully operational by January 2007. In the year ended 30 April 2006, our existing advertising activity generatedover 3,500 re-mortgage leads, from which we derived referral income and profits before tax of almost £1 million. Our current business model is expected to generate an income stream and profitsbefore tax of approximately £1.5 million in the year ending 30 April 2007.However, we have been considering how we might otherwise maximise the value ofthis business, whilst continuing to provide solutions that are appropriate forcustomer needs. As a result, we have decided to establish DFD Mortgages Limited ("DFDMortgages"), a 100% subsidiary of Debt Free Direct Group Plc. The business willbe both a broker and packager of re-mortgages and secured loans and will bemanaged day to day by Nicola Hackney as Director of Operations. Nicola has over 11 years of management experience in the mortgage arena. She isfully qualified, having attained the Cemap and MAQ qualifications. Her previousroles with The TSB, Midland Bank and Abbey National have given her a wealth ofexperience and she brings the ethics and values that we believe are fundamentalto achieving sustainable growth in this industry. We believe that profits to be generated in the year ending 30 April 2007 fromthis new business model will not be incremental to the existing anticipatedlevel of approximately £1.5 million before tax. However, we are confident thatimproved conversions from existing lead generation will provide incrementalprofit growth in subsequent years. Andrew Redmond, CEO, commented: "We are delighted to announce that DFD Mortgages has been granted FSA approval.This development enhances our existing re-mortgage business and means that weare well placed to cement our position as a consumer champion, by ensuring thatour customers continue to receive appropriate advice and are offered the rightproduct at the best rate available. Moreover, we will be maximising our income from those leads where an IVA wouldnot be the appropriate solution, either for the consumer or the lender. This business continues to be built organically without incurring acquisitioncosts." Enquiries: Debt Free Direct Group plc Andrew Redmond, Chief Executive Officer 0845 296 0100Paul Latham, Finance Director 0845 296 0200 Numis SecuritiesIain McDonald 020 7776 1500Lee Aston Financial DynamicsEd Gascoigne-Pees 020 7269 7132Nick Henderson 020 7269 7114 Notes Debt Free Direct helps individuals find the best solution to their debtproblems, based upon an analysis of their particular financial circumstances.Financial information on an individual is processed through a computer model(the Best Advice Model) developed by Debt Free Direct in order to recommend asolution suitable for that individual's particular financial circumstances. Thesolutions offered range from basic advice, such as simply destroying creditcards and curbing unnecessary expenditure, to the following solutions: • consolidation loan • re-mortgage • informal arrangement • individual voluntary arrangement (IVA) • bankruptcy Debt Free Direct is unique in the marketplace in that, unlike most of itscompetitors who sell specific products, Debt Free Direct looks to provide thebest advice to the consumer and recommends them the most appropriate service. Debt Free Direct is based in Chorley, Lancashire, and was admitted to AIM inDecember 2002. This information is provided by RNS The company news service from the London Stock Exchange