Frp Advisory Group Regulatory News (FRP)

2 Nov 2006 07:01

Debt Free Direct Group PLC02 November 2006 2 November 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 ahead of its interim results announcement, whichwill be made on 20 November 2006. Highlights • DFD has experienced a very strong trading performance in the 6 months ended 31 October 2006. • Average monthly new IVA case run-rate for the period was 536 cases per month (or 746 counting joint cases as 2). This represents an increase of 101% compared to the same period last year. • Turnover has increased by 91% to £12.2m for the six months ended 31 October 2006, compared to £6.4m for the same period last year. • Turnover includes commissions from re-mortgage leads, which generated income and profits of almost £700K in the period. We would expect this income stream to continue to grow in the rest of the financial year. • In October 2006 the relocation to our new 40,000 sq. ft operating facilities in Chorley was completed successfully. These now provide considerable space for continued growth of the business in the months ahead. • Profits for the six months ended 31 October 2006 will be significantly more than double the profits achieved in the same period last year. • Anticipated profits for the financial year ended 30 April 2007 will comfortably meet market expectations. Andrew Redmond, CEO, commented: "We are very happy to announce that on all fronts trading performance hasimproved significantly compared to the same period last year and in particular,we are delighted with our increased profitability. Debt Free Direct has, from its inception, built its business model to be"Regulation Ready". We are delighted that our proposals for "audit andaccreditation" of debt advice companies continue to be very well received bylenders and industry commentators. We anticipate that our forthcoming debtconference on 9 November will provide another important step in the educationprocess. "Audit and accreditation" would be very good news for the debt solution industryand high quality solution providers. We will continue our long term strategy ofproviding both the debtor and their lenders with "appropriate advice". Ultimately, the anticipated industry shift towards "accredited advisors",combined with the growth potential that our relocation brings, means that weview the next stage of our development with both confidence and excitement." There will be an analyst presentation to discuss the interim results at 9.30amon 20 November 2006 at Financial Dynamics, Holborn Gate, 26 SouthamptonBuildings, London WC2A 1PB. 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