Debt advisor boosts sales and earnings
A “significant” increase in the number of IVAs under management has led to a dramatic rise in turnover at ClearDebt in the six months to December 31.
Sales at the Timperley-based company rose by 75% to £3.97m, and earnings before interest, tax, depreciation and amortisation grew by 164% to £1.15m.
Despite this, higher finance and amortisation costs relating to its recent purchase of the Relax Group’s assets meant the company’s pre-tax profits fell by 91% to £37,200.
The company gained agreement for 761 IVAs for its customers during the period, compared with 350 last year.
ClearDebt also added that its debt management arm, Abacus, also continued to to provide a strong source of alternative income, and has 6,345 plans currently providing income.
The company also said that the prospects for the remainder of the year look good, with a strong pipeline and a favourable economic environment for its products.
David Mond, CEO of ClearDebt, said: “ClearDebt has now successfully integrated the Relax acquisition and is ready to benefit by virtue of our strong operational performance.
“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.”