ClearDebt in the black
DEBT management company ClearDebt is one business that has been buoyed by the recession, posting solid results and a maiden profit, and predicting strong growth as personal insolvencies are set to rise over the next year.
The Timperley-based group, which provides consumer debt advise, IVAs and debt management, saw revenues soar 81% to £3.39m (2008: £1.87m), while it posted its first full year pre-tax profit of £460,923 for the year to t he end of June 2009, compared with a £1.2m loss in 2008.
It arranged a total of 483 IVAs during the year, close to double the 247 it arranged in 2008. But the company said it was the successful diversification of these IVA activities into the debt management arena that had been the key to posting its profit.
Debt management plan division Abacus, which it acquired in July 2007, arranged around 2,800 new plans during the year and is now profitable, with 52% of leads coming from the ClearDebt website.
The company said the cash it generated would be reinvested in the business and added that it expected personal debt and insolvency figures to continue to rise, also pushing the company’s growth and development.
David Mond, chief executive, said: “Whilst the first signs of an economic recovery are now visible, many individuals remain deeply indebted and the man or woman in the street remains finely balanced on the debt tightrope. We at ClearDebt offer an integrated debt management solution to our clients and are now seeing the steps taken over the last two years beginning to produce results.”
In July the company launched a prepaid card as an alternative to an online current account, which customers who may be unable to open an account because of bad credit ratings for example, can use to pay bills online. The card costs £4.50 to register and £9.99 a month there after. Withdrawals are charged at 50p each.
Mr Mond added: “We continue to expand our internet marketing activities across the group and are constantly exploring new online marketing opportunities. In conjunction with this, we are also enhancing and expanding The Debt Advice Portal software to manage all of our broker generated referrals.
“The last year was very much a step change in performance. Following a good start to the first quarter, we predict further growth across our income streams.”
ClearDebt had net assets of £4.5m, with around £585,000 in cash.
