TIDMCLEA
RNS Number : 7925B
Cleardebt Group PLC
25 February 2011
ClearDebt Group plc
("ClearDebt" or "the Group")
Unaudited Interim Results for the six months ended 31 December
2010
ClearDebt, the AIM quoted personal debt resolution adviser is
pleased to announce its Interim Results for the six months ended 31
December 2010. The period saw significant growth in EBITDA and
revenues, driven by a strong growth in the provision of Individual
Voluntary Arrangements ("IVAs"). The Directors expect continued
growth to the year-end and for the foreseeable future on the basis
of the much-publicised expected ongoing levels of personal debt in
the UK. The Group is expected to benefit from this as it continues
to demonstrate the strong operational success it has enjoyed since
its inception.
Financial Highlights:
0 Revenues increased to GBP3.97m (2009: GBP2.27m) up 75%
0 EBITDA of GBP1,156,849 (2009: GBP438,097) up 164%
Operational Highlights
0 Significant increase in number of IVAs passed:
761 agreed in period, more than 100% increase (2009: 350)
Month 2010/11 2009/10 Month 2010/11 2009/10
July 102 65 Oct 110 68
Aug 114 59 Nov 166 55
Sep 138 52 Dec 131 51
Total 354 176 Total 407 174
0 Alternative cash flow/business diversity continues to be
provided by Abacus, the Group's debt management arm which now has
6,345 debt management plans providing income.
Outlook
0 Continued organic growth to drive increased profits; potential
growth from acquisitions
0 Number of IVAs passed continues to increase and future looks
highly positive
Month 2010/11 2009/10
Jan 77 20
0 Pipeline of new business suggests strong continued growth
through to the year-end
0 Current economic environment continues to create increasing
demand for personal debt resolution and will continue for the
foreseeable future.
0 Negotiations ongoing with new referral partners to provide an
increased level of IVA referrals.
0 The IVA and debt management industry provides many
opportunities for a consolidator to drive growth from
acquisitions
David Mond, CEO of ClearDebt commented:
"ClearDebt has now successfully integrated the Relax acquisition
and is ready to benefit by virtue of our strong operational
performance. Whilst the combination of the nation's addiction to
personal credit and the continued tough economic outlook have
created personal tragedies for many, ClearDebt continues to provide
a manageable and compassionate solution to personal debt.
This situation does not look likely to change any time soon. Our
continued operational strength is largely down to our unparalleled
kaizen based system that has allowed us to grow from processing 10
IVAs a month 4 years ago to 150+ now. We are confident that we will
be able to provide not only further organic growth, building on our
genuine success, but also take on IVAs set up by other providers
which are not as well organised as ClearDebt and which may be
looking to exit an overcrowded market."
25 February 2011
For further information, please contact:
ClearDebt Group plc David Mond, Chief Executive Officer
Tel No: 0161 968 6805
Seymour Pierce Limited John Cowie/Guy Peters (Corporate
(Broker and Nominated Adviser) Finance)
David Banks/Katie Ratner (Corporate
Broking)
Tel No: 020 7107 8000
Chairman's Statement
I am pleased to present our Interim results for the 6 months
ended 31 December 2010.
The period saw considerable operational success with a
more-than-doubling in earnings before interest, tax, depreciation
and amortisation to GBP1,156,849 (2009: GBP438,097). Our business
has continued to generate substantial cash flow at the operating
level: at the period end cash in hand was GBP517,302 (2009:
GBP378,241). It is worth noting that cash could have been higher,
but for the strategic choice to spend GBP278,364 acquiring debt
management back books that will provide increased income for a
considerable period - well in excess of the acquisition cost.
During the period the Group made a profit before taxation of
GBP37,274 (2009: GBP425,185). This was after substantially higher
amortisation costs of GBP814,297 (2009: GBP154,834) and higher
interest charges of GBP264,402 (2009: GBP63,300) following the
Relax acquisition and the subsequent convertible loan issue. The
high amortisation charge in the first half reflects the continued
amortisation of the intangible back books of both IVA and DMP
assets purchased from Relax. The DMP back books have now been fully
amortised which will lead to a lower amortisation charge in the
second half - although I am pleased to say that we are still
generating significant income from them.
The Board sees this as a period of financial consolidation and
we are confident that the Group will generate profits more in
keeping with our strong EBITDA in future periods.
Existing businesses
ClearDebt - IVAs
The Insolvency Service personal insolvency statistics showed the
number of new IVAs peaked in June 2010 at just under 13,500 and
have since fallen back slightly quarter on quarter but remain at
historically high levels in excess of 12,500 in the quarter to
December 2010. These figures can be seen as a reflection of
society's addiction to personal credit. That ClearDebt provides a
necessary service that will allow thousands of customers to retain
financial independence and responsibility is without doubt.
I am delighted to report that we continued to gain market share
with the number of Individual Voluntary Arrangements (IVAs)
approved in the six months ended 31 December 2010 more than
doubling to 761 (2009: 350) when compared to the same period last
year.
1(st) Quarter 2(nd) Quarter
2010/11 2009/10 2010/11 2009/10
July 102 65 Oct 110 68
Aug 114 59 Nov 166 55
Sep 138 52 Dec 131 51
Total 354 176 Total 407 174
In January 2011 (the third quarter of our 2010-11 financial
year) we were pleased to have passed 77 IVAs (2010: 20) in a
traditionally quieter month as there are fewer working days in
December to book meetings for approval of IVAs in January.
Furthermore the disruption caused by the snow in December closed
the Staveley office for 3 days.
We have recently started to transfer new cases to the Staveley
office to utilise spare staffing capacity that is coming available
as the Relax cases are gradually completed and closed. ClearDebt
continues to benefit from its low overhead, high quality model,
which allows the company's cost base to be kept to a minimum level
whilst still providing high levels of service.
We continue to experience an increasing proportion of our
prospective clients taking up IVAs rather than debt management
plans. In the majority of cases this is the most appropriate
solution for the heavily indebted clients we continue to advise who
would otherwise, in a debt management plan, take substantially more
than the 5 years of a typical IVA to clear their debts in full.
The profitability of the IVA division continues to increase
despite the increased financing and amortisation charges related to
the Relax purchase as evidenced by an increase in EBITDA of the
division to GBP957,186
(2009: GBP231,157). This reflects not only the increased numbers
of new cases being passed each month, but also shows the benefit of
the substantial income for the ongoing management of the IVAs that
is now being realised as a result of our conservative income
recognition policy on the passing of a case.
Abacus - DMPs
The Abacus debt management division had a more difficult first
half with total client numbers declining as new client numbers were
insufficient to offset the normal attrition rates of clients
completing or defaulting on plans for a book of our current size.
In addition we are seeing many clients transferring onto our IVA
product.
During the period a book of DMP clients was purchased for
approximately GBP280,000 and we continue to actively seek to
acquire further books. Recent well publicised enforcement of
regulations by the Office of Fair Trading has increased the number
of companies seeking to sell their DMP books as companies exit the
business or seek cash to implement the necessary and costly checks
and balances required to become compliant.
Turnover in the 6 months to 31 December 2010 increased to
GBP1.55m (2009:GBP1.33m) with EBITDA declining marginally to
GBP199,663 (2009:GBP206,940). Overall the division made a pre-tax
loss of GBP299,232 (2009: profit GBP86,108) after amortisation
charges relating mainly to Relax of GBP420,746 (2009:GBP73,194).
The Relax back book has now been fully amortised although it
continues to generate significant income each month.
Abacus as at 31 December 2010 had a total of 6,345 DMPs (2009:
6,793) generating income.
We continue to look to leverage the growing database of clients
that we have, and to expand the products and services we can offer
to clients thus boosting the ancillary streams of income we
currently enjoy.
ClearCash card
Steady progress continues to be made with our Pre-Paid
MasterCard ClearCash. In the period we launched an additional new
version of the card which has no monthly fee but rather levies
charges each time a card is used. This has significantly increased
the rate of new card signings and as at 31 December 2010 there were
3,159 cards that have been issued (2009:540).
We see the ClearCash card as an integral service offering to our
clients. It is in both their and our interests that our clients'
personal financial management is stable throughout the life of
their IVA or DMP.
Outlook
I continue to be optimistic about the Group's prospects for the
remainder of the financial year to 30 June 2011 with the number of
IVAs expected to be accepted continuing to outpace the market as a
whole. Increasingly we are seeing clients accept that an IVA is the
most appropriate debt resolution product for them and we expect the
IVA division to be the main engine of growth.
We are also launching new initiatives to expand existing
referrals as well as generating new referrers and would if
successful significantly increase the numbers of IVAs being
proposed. We would expect any progress with these initiatives to
take a number of months to come to fruition in terms of new cases
given the lead times to progress from lead to approval of an
IVA.
Cash flow generation remains strong and we continue to look for
consolidation opportunities and back books to purchase from our
existing resources.
I believe that the Group is well positioned to continue its
growth through three main drivers. Firstly, there are the
continuing levels of unserviceable personal debt in the UK that
will drive organic growth. Secondly our efforts to increase our
network of referral partners will be profitable and drive further
organic growth. Finally, there are groups in our market who will be
looking to exit as they lack our fundamental structure and
financial discipline. We therefore look forward to the potential
benefits from any consolidation opportunities which may occur in
our industry.
Gerald Carey FCIB
25 February 2011
ClearDebt Group plc 6 Months 6 Months Year
Consolidated Income Statement ended ended ended
31 December 2010 31 December 2009 30 June 2010
Unaudited Unaudited Audited
Note GBP GBP GBP
Revenue
- ongoing 3,915,692 2,265,316 6,633,995
- acquisitions 55,042 - -
__________ __________ __________
4 3,970,734 2,265,316 6,633,995
Cost of sales (1,928,818) (1,430,828) (3,333,307)
__________ __________ __________
Gross profit 2,041,916 834,488 3,300,688
Administrative expenses (779,977) (381,564) (1,293,371)
Administrative expenses -Separately
disclosable items 8 (74,278) - (449,473)
Share based payment (30,812) (14,827) (42,573)
__________ __________ __________
Profit before interest, tax,
depreciation and amortisation 1,156,849 438,097 1,515,271
Depreciation (64,009) (48,675) (102,875)
Amortisation (814,297) (154,834) (993,980)
Separately disclosable items 8
Gain on bargain purchase 21,338 252,914 252,914
_________ __________ __________
Profit from operations 299,881 487,502 671,330
Finance costs (264,402) (63,300) (128,314)
Finance costs - separately disclosable items - (78,346)
Finance income 1,795 983 1,039
_________ __________ __________
Profit before taxation 37,274 425,185 465,709
Taxation 6 (6,514) (119,052) (123,474)
_________ __________ __________
Profit after taxation for period 30,760 306,133 342,235
_________ __________ __________
Earnings per ordinary share -
basic (pence) 5 0.01p 0.10p 0.11p
Earnings per ordinary share -
diluted (pence) 5 0.01p 0.10p 0.11p
The results for the period are derived from continuing
activities.
ClearDebt Group plc 6 Months 6 Months Year
Consolidated Statement of ended ended ended
Comprehensive Income 31 December 2010 31 December 2009 30 June
2010
Unaudited Unaudited Audited
GBP GBP GBP
Profit for the period 30,760 306,133 342,235
Other comprehensive income net of tax - - -
_________ __________ __________
Total comprehensive profit for the period 30,760 306,133
342,235
_________ __________ __________
Attributable to:
Owners of the parent 30,760 306,133 342,235
_________ __________ __________
As at As at As at
ClearDebt Group plc Consolidated 31 December 31 December 30 June
Statement of Financial Position 2010 2009 2010
Unaudited Unaudited Audited
GBP GBP GBP
Assets
Non-current assets
Intangible assets 6,284,102 7,516,756 6,765,047
Property, plant and equipment 245,063 222,758 227,992
Deferred taxation 158,706 328,098 163,720
------------- ------------- ------------
6,687,871 8,067,612 7,156,759
Current assets
Trade receivables 1,120,706 662,131 1,005,163
Corporation tax receivables 8,372 - 8,372
Other receivables 248,750 120,350 148,063
Cash and cash equivalents 517,302 378,241 541,504
------------- ------------- ------------
1,895,130 1,160,722 1,703,102
Total assets 8,583,001 9,228,334 8,859,861
============= ============= ============
Equity and liabilities
Issued capital 6,166,812 6,166,812 6,166,812
Share premium account 279,948 279,948 279,948
Share based compensation 171,199 112,641 140,387
Other reserves 96,495 - 96,495
Retained losses (1,636,261) (1,703,123) (1,667,021)
Total equity 5,078,193 4,856,278 5,016,621
Current liabilities
Trade and other payables 549,215 3,066,216 1,009,151
Corporation tax payables - - -
------------- ------------- ------------
549,215 3,066,216 1,009,151
Non-current liabilities
Financial liabilities 2,877,057 1,200,000 2,765,350
Deferred taxation 78,536 105,840 68,739
------------- ------------- ------------
2,955,593 1,305,840 2,834,089
------------- ------------- ------------
Total liabilities 3,504,808 4,372,056 3,843,240
------------- ------------- ------------
Total equity and liabilities 8,583,001 9,228,334 8,859,861
============= ============= ============
6 Months 6 Months Year
ClearDebt Group plc ended ended ended
Consolidated Statement of 31 December 31 December 30 June
Cashflows 2010 2009 2010
Unaudited Unaudited Audited
GBP GBP GBP
Cash flow from continuing
operating activities
Profit before taxation 37,274 425,185 465,709
Depreciation of property, plant
and equipment 64,009 48,675 102,875
Amortisation of intangible
assets 814,297 154,834 993,980
Gain on bargain purchase (21,338) (252,914) (252,914)
Share based payment 30,812 14,827 42,573
Increase in trade and other
receivables (216,230) (53,171) (423,916)
Finance costs 264,402 63,300 206,660
Finance income (1,795) (983) (1,039)
(Increase)/decrease in trade and
other payables (450,951) (66,182) 332,252
Cash generated by operations 520,480 333,571 1,466,180
Corporation tax refund - 10,317 10,317
------------- ------------- ------------
Net cash generated by operating
activities 520,480 343,888 1,476,497
Investing activities
Acquisition of business and
assets (278,364) (350,000) (2,700,000)
Acquisition of intangibles (25,351) (56,290) (143,728)
Acquisition of property, plant
and equipment (81,082) (81,633) (144,251)
Finance income 1,795 983 1,039
Sale of property, plant and
equipment - - 3,184
Net cash used in investing
activities (383,002) (486,940) (2,983,756)
Financing activities
Proceeds from issue of
convertible loan notes - - 1,800,000
Issue costs - - (184,379)
Interest on loans (161,680) (63,300) (151,451)
Cash generated by/(used) in
financing activities (161,680) (63,300) 1,464,170
------------- ------------- ------------
Decrease in cash and cash
equivalents (24,202) (206,352) (43,089)
Opening cash and cash equivalents 541,504 584,593 584,593
------------- ------------- ------------
Closing cash and cash equivalents 517,302 378,241 541,504
============= ============= ============
ClearDebt
Group plc
Consolidated
Statement of Share
Changes in Issued premium Share based Other Retained
Equity Capital account compensation Reserves losses Total
GBP GBP GBP GBP GBP GBP
Balance at 1
Jul 2009 6,166,812 279,948 97,814 - (2,009,256) 4,535,318
Share based
compensation - - 14,827 - - 14,827
Profit for
the period - - - - 306,133 306,133
Balance at 31
Dec 2009 6,166,812 279,948 112,641 - (1,703,123) 4,856,278
Equity
component on
issue of
convertible
loan notes - - - 96,495 - 96,495
Share based
compensation - - 27,746 - - 27,746
Profit for
the period - - - - 36,102 36,102
As at 1 Jul
2010 6,166,812 279,948 140,387 96,495 (1,667,021) 5,016,621
Share based
compensation - - 30,812 - - 30,812
Profit for
the period - - - - 30,760 30,760
Balance at 31
Dec 2010 6,166,812 279,948 171,199 96,495 (1,636,261) 5,078,193
========= ======= ============ ======== =========== =========
Notes to the Interim Financial Statements
1. General information
The Group's interim financial statements consolidate the results
of ClearDebt Group plc and its subsidiary companies made up to 31
December 2010.
The Group's functional currency is the GBP Sterling.
ClearDebt Group plc is a limited liability company incorporated
and domiciled in England and Wales whose shares have been admitted
to trading on AIM, a market operated by the London Stock
Exchange.
2. Accounting policies and basis of preparation
These interim financial statements do not constitute statutory
accounts as defined by section 434 of the Companies Act 2006. It
does not therefore include all the information and disclosures
required in the annual financial statements and should be read in
conjunction with the Group's annual financial statements as at 30
June 2010, which have been prepared in accordance with IFRS's as
adopted by the European Union. The Group's statutory accounts for
the year ended 30 June 2010 have been delivered to the Registrar of
Companies. The report of the auditors was (i) unqualified, (ii) did
not include a reference to any matters to which the auditors drew
attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under Section 498 (2) or (3) of
the Companies Act 2006.
The Group has not applied IAS 34, Interim Financial Reporting,
which is not mandatory for UK Groups, in the preparation of these
interim financial statements.
The preparation of the interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expenses. Estimates
and judgements are continually evaluated and are based on
historical experience and other factors, such as expectations of
future events and are believed to be reasonable under the
circumstances. Actual results may differ from these estimates. In
preparing these interim financial statements, the significant
judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the
same as those applied to the audited consolidated financial
statements for the year ended 30 June 2010.
The interim financial statements have been prepared using the
same accounting policies and estimation techniques as will be
adopted in the Group financial statements for the year ending 30
June 2011. The Group financial statements for the year ended 30
June 2010 were prepared under International Financial Reporting
Standards as adopted by the European Union.
The intangible insolvency assets are being amortised over a
period of three years and the debt management assets over periods
ranging between 12 and 18 months. These periods have been selected
by the directors to approximate as closely as possible to the
period over which it is estimated that the vast majority of income
will be received.
3. Going Concern
The Group manages its cash requirements through its existing
cash resources and operating cash flows. The Group's forecasts and
projections, taking account of reasonably possible changes in
trading performance, show that the Group should be able to operate
within the level of its current resources. Consequently, after
making enquires, the Directors have a reasonable expectation that
the Group has adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to
adopt the going concern basis of accounting in preparing the
interim financial statements.
4. Segmental Information
The Group's total income, result before taxation and net assets
were all derived from its principal activities being the provision
of insolvency services (IVAs and PTDs) and DMPs to individuals
experiencing personal debt problems. All the Group's activities
were undertaken wholly in the United Kingdom.
6 months to 31 December Debt
2010 Insolvency Management Total
GBP GBP GBP
Revenue
- ongoing 2,415,609 1,500,083 3,915,692
- acquisitions - 55,042 55,042
2,415,609 1,555,125 3,970,734
Cost of sales (921,290) (1,007,528) (1,928,818)
Gross profit 1,494,319 547,597 2,041,916
Administrative expenses (481,154) (298,823) (779,977)
Share based payment (15,041) (15,771) (30,812)
Separately disclosable
items (40,938) (33,340) (74,278)
Profit before interest,tax,
depreciation and amortisation 957,186 199,663 1,156,849
Depreciation (26,272) (37,737) (64,009)
Amortisation (393,551) (420,746) (814,297)
Gain on bargain assets - 21,338 21,338
Profit from operations 537,363 (237,482) 299,881
Finance costs (202,652) (61,750) (264,402)
Finance income 1,795 - 1,795
Profit before taxation 336,506 (299,232) 37,274
Taxation (83,505) 76,991 (6,514)
Profit after taxation
for period 253,001 (222,241) 30,760
4. Segmental Information (continued)
6 months to 31 December Debt
2009 Insolvency Management Total
GBP GBP GBP
Revenue
- ongoing 813,048 1,452,268 2,265,316
Inter segment trading 122,375 (122,375) -
935,423 1,329,893 2,265,316
Cost of sales (561,222) (869,606) (1,430,828)
Gross profit 374,201 460,287 834,488
Administrative expenses (136,223) (245,341) (381,564)
Share based compensation (6,821) (8,006) (14,827)
Profit before interest,
tax,
depreciation and amortisation 231,157 206,940 438,097
Depreciation (14,337) (34,338) (48,675)
Amortisation (81,640) (73,194) (154,834)
Gain on bargain assets 202,914 50,000 252,914
Profit from operations 338,094 149,408 487,502
Finance costs - (63,300) (63,300)
Finance income 983 - 983
Profit before taxation 339,077 86,108 425,185
Taxation (99,094) (19,958) (119,052)
Profit after taxation
for period 239,983 66,150 306,133
4. Segmental Information (continued)
Year ended 30 June 2010 Insolvency Debt Management Total
GBP GBP GBP
Revenue
- Ongoing 3,408,373 3,225,622 6,633,995
Cost of sales (1,522,269) (1,811,038) (3,333,307)
Gross profit
Administrative expenses 1,886,104 1,414,584 3,300,688
Share based payment (701,513) (591,858) (1,293,371)
Separately disclosable (19,579) (22,994) (42,573)
items (363,543) (85,930) (449,473)
Profit before interest,
tax,
depreciation and amortisation 801,469 713,802 1,515,271
Depreciation (30,307) (72,568) (102,875)
Amortisation (468,193) (525,787) (993,980)
Gain on bargain assets 202,914 50,000 252,914
Profit from operations 505,883 165,447 671,330
Finance costs (12,801) (115,513) (128,314)
Finance income 1,039 - 1,039
Separately disclosable
items (54,776) (23,570) (78,346)
Profit before taxation 439,345 26,364 465,709
Taxation (116,093) (7,381) (123,474)
Profit after taxation
for period 323,252 18,983 342,235
4. Segmental Information (continued)
As at As at As at
31 Dec 31 Dec 30 Jun
2010 2009 2010
GBP GBP GBP
Capital expenditure to acquire
intangible assets
Insolvency 25,351 256,290 2,260,728
Debt management 278,364 150,000 961,000
303,715 406,290 3,221,728
Depreciation of property, plant
and equipment
Insolvency 26,271 14,337 30,307
Debt management 37,738 34,338 72,568
64,009 48,675 102,875
Amortisation of intangible assets
Insolvency 393,551 81,640 468,193
Debt management 420,746 73,194 525,787
814,297 154,834 993,980
The Group's total income, profit before taxation and net assets
were all derived from its principal activities being the provision
of IVA and other financial advice and appropriate solutions to
individuals experiencing personal debt problems. All the Group's
activities were undertaken wholly in the United Kingdom.
Under IFRS 8, the Group is required to identify its operating
segments on the basis of internal reports about segments of the
Group that are regularly reviewed by the chief operating decision
maker to allocate resources and assess their performance. The chief
operating decision maker has been identified as the Board of
ClearDebt Group plc, led by the Chairman.
The adoption of this standard has not resulted in any change to
the operating segments previously disclosed by the Group.
5. Earnings per ordinary share
6 Months 6 Months Year
ended ended ended
31 December 31 December 30 June
2010 2009 2010
Unaudited Unaudited Audited
GBP GBP GBP
Profit attributable to
equity holders of parent 30,760 306,133 342,235
Weighted average number
of shares in issue -
basic 308,340,567 308,340,567 308,340,567
Weighted average number
of shares in issue -
diluted 308,340,567 308,340,567 308,340,567
Earnings per share -
basic (pence) 0.01 0.10 0.11
Earnings per share -
diluted (pence) 0.01 0.10 0.11
The weighted average number of ordinary shares for calculating
the diluted earnings per share above is identical to those for the
basic earnings per share. This is because the outstanding share
warrants, share options and potential shares issued under the
convertible loan would not be dilutive under the terms of
International Accounting Standard ("IAS") 33.
6. Taxation
6 Months ended 6 Months ended Year Ended
31 December 31 December 30 June
2010 2009 2010
GBP GBP GBP
Analysis of current year
Current tax
UK corporation tax repayment
due - - (8,372)
UK corporation tax due - 48,237 -
Over provision from prior years - - (15,273)
Deferred tax
Temporary differences, origination
and reversal 6,514 70,815 147,119
Tax on profit for the period 6,514 119,052 123,474
7. Acquisition
In November 2010 Abacus purchased a back book of debt management
cases at a cost of GBP278,364.
The assets acquired were exclusively intangible assets
represented by the future income due from the collection of the
back book of DMP cases. At the date of acquisition the relevant
assets comprised the following:
Fair value
Book value adjustment Fair Value
GBP GBP GBP
Other intangible assets-
Debt Management - 308,000 308,000
Deferred taxation - (8,298) (8,298)
Gain on bargain asset - (21,338) (21,338)
278,364 278,364
Settled by: GBP
Cash consideration 278,364
Included in the results for the half year to 31 December 2010
are revenue of GBP55,042 and a pre tax profit of GBP16,486.
We have estimated the timing of, and the expected future income
due, from the back books acquired less a provision for future
expected delinquency together with the estimated costs necessary to
collect in the income. This has been produced on a net present
value basis to provide an estimate of the fair value of the
intangible assets acquired.
8. Separately disclosable items
6 Months ended Year Ended
6 Months ended 31 December 30 June
31 December 2010 2009 2010
Unaudited Unaudited Audited
GBP GBP GBP
Administration expenses
Expenses relating to the
acquisition and restructuring
of the Relax business (40,938) - (449,473)
Closure costs (33,340) - -
(74,278) - (449,473)
Gain on bargain purchase 21,338 252,914 252,914
Finance costs
Bridging loan finance - - (78,346)
(52,940) 252,914 (274,905)
During the period the Debtcare DMP division acquired from Relax
and located in Staveley was closed and the clients were
successfully transferred to our Timperley head office.
The gain on bargain purchase has arisen from the purchase of a
back book of DMP clients in the period and represents the
difference between the fair value attributed to the assets and the
cost price paid less a provision for deferred taxation.
9. The Board of Directors approved the interim report on 25
February 2011. A copy of this Interim Statement is being sent to
shareholders and copies are available for download by visiting our
website at www.cleardebtgroup.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ZMGZZGDFGMZM
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