ClearDebt profits surge
DEBT management company ClearDebt, which has seen half year profits surge, expects the boon to continue after buying up a rival’s assets.
The Timperley-based company said it had seen “significant growth” in revenues and that it expects the trend to continue to the year end.
Pre-tax profit increased 320% to £425,185, for the half year to the end of December 2009 (2008: £101,393). Turnover increased 57% to £2.3m.
In December, Cleardebt agreed to pay £2.7m to the administrators of rival Relax Group for 6,500 IVAs, protected trust deeds and debt management plans – a deal that more than doubled the number of clients it has under management.
Last month, it announced it was considering a £3m share placing to pay back a £500,000 bridging loan taken to cover a payment for the acquisition.
The company agreed a total of 350 new IVAs during the six month period, up from 200 a year earlier.
Meanwhile, debt management arm Abacus has around 3,950 debt plans arranged. Diversification into services such as its pre-paid MasterCard ClearCash was also showing progress, it said.
The company added that the current economic environment continues to create increasing demand for personal debt resolution.
The number of IVAs agreed in the first two months of 2010 were up 34% on the same two months of 2009, it said, adding that March 2010 was shaping up to be a “record month”.
“ClearDebt is in a position to cope with substantial growth due to its scalable model based around web-based algorithms – thereby helping to minimise the cost per case and enhancing profitability,” it said.
David Mond, chief executive of ClearDebt, added: “We are very pleased by our performance throughout the period and are encouraged by what appear to be highly positive signs for continued future growth across all product lines.
“The Group is becoming a major player in the industry. As a profitable and highly scalable debt resolution group, we are confident that we will be able to manage our growth for the benefit of our shareholders.”
