Frp Advisory Group Regulatory News (FRP)

4 Sep 2006 07:00

Debt Free Direct Group PLC04 September 2006 4 September 2006 DEBT FREE DIRECT GROUP PLC TRADING UPDATE Debt Free Direct Group (DFD), the leading debt advice and solutions company,today releases a trading update, after 4 months of the current financial yearending 30 April 2007. Highlights • DFD has experienced a very strong trading performance in the first 4 months of the financial year ending 30 April 2007. • Average monthly new IVA case run-rate for the first quarter to 31 July 2006 was 551 cases per month (or 767 counting joint cases as 2). This represents an increase of 196 per cent compared to the same period last year. • Growth continued into August 2006, which was a new DFD record month for new IVA cases, with a total of 607 (841 counting joint cases as 2) new cases. • Average monthly new IVA case run-rate after 4 months is already ahead of brokers' average run-rate forecasts for the whole financial year ending 30 April 2007 and continues to increase. • We are now expecting that profits for the financial year ended 30 April 2007 will be at least 10% ahead of the current market consensus (of £9.8m Adjusted PBT), with an attendant uplift in future years. • We are delighted with the success of our Northern Ireland operation. This has already achieved its expected new case run-rate and we are now looking at how quickly its capacity can be expanded still further. • The relocation to our new operating facilities in Chorley is fully on track. We expect to be operational at that site by 8th October 2006 and have already commenced our recruitment drive in anticipation of the additional seating capacity that will provide. • Debt Free Direct Australia commenced trading operations during August 2006 and early indicators are positive. We continue to anticipate that it will be fully operational by the end of this calendar year. • On 3 August 2006 we issued a comment to the market, calling for regulatory change. We are encouraged, particularly from recent press coverage, that this view is shared by other interested parties in the industry. Andrew Redmond, CEO, commented: "Debt Free Direct strongly believes that its ethical approach to providing debtadvice and appropriate solutions is at the core of its success. We focus on providing the customer with best advice, whilst ensuring that thelenders' returns are maximised. We have always suspected that the DFD approachled to better returns for lenders than those generally achieved in the IVAmarket. A recent report published by PwC has, for the first time, enabled us toquantify that benefit to lenders. We are delighted that a DFD proposal offers a29 per cent higher return to lenders than the average achieved by the rest ofthe IVA market. This can only contribute positively to our market leadingposition. We remain confident that the combination of continued growth, together with ourfocus on ethics and quality, thereby maximising lenders' returns, will ensureeven greater rewards going forward." Enquiries: Debt Free Direct Group plc Andrew Redmond, Chief Executive Officer 01257 240599Paul Latham, Finance Director 01257 240529 Numis Securities Iain McDonald 020 7776 1500Lee Aston Financial Dynamics Ed 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