Frp Advisory Group Regulatory News (FRP)

6 Feb 2006 07:01

Debt Free Direct Group PLC06 February 2006 6 February 2006 DEBT FREE DIRECT GROUP PLC TRADING UPDATE PROFITS AHEAD OF MANAGEMENT EXPECTATIONS Debt Free Direct Group (DFD), the leading debt advice and solutions company,today releases a trading update following the third quarter ended 31 January2006. • Profits for the 9 months ended 31 January 2006 were ahead of management expectations, reflecting our continuing strong growth in new case run-rate and turnover as shown below. New IVAs average monthly case Actual monthly run-rate turnover Joint cases = 1 Joint cases = 2 £K January 2006 438 600 1,628January 2005 193 260 788 Average monthly turnover £K 3 months to January 2006 380 522 1,4793 months to January 2005 166 228 674 • The very strong post-Christmas response to our advertising was again, ahead of management expectations. • As a result of this strong growth in our ability to generate more IVAs, we are accelerating our plans to increase our IVA processing capacity. • We would anticipate that profits for the financial year ending 30 April 2006 will be closer to the top of the range rather than the consensus of analysts' current forecasts. Andrew Redmond, Chief Executive Officer, commented: "We are pleased to be ableto confirm that we continue to grow ahead of our expectations." 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 020 7831 3113 Ed Gascoigne-PeesDominick Peasley Notes The new IVA average monthly case run-rate has been calculated consistently withprevious announcements. An IVA is recognised on issue of a finalised IVAproposal to the debtor which, based on historic experience and case data, issubject to a provision for those cases that may not be approved by the meetingof creditors. In addition, the total includes referred IVA cases. 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