ClearDebt rides on back of worsening economy
DEBT adviser ClearDebt today said it is trading profitably for the first time since it listed on AIM, with economic conditions meaning strong growth set to continue.
The Timperley-based company, which was readmitted to AIM in January 2006, following a reverse takeover, said it had its highest monthly total of Individual Voluntary Arrangements (IVAs) in November – with 40 passed.
It passed 83 IVAs between July and September 2008, compared with 36 in the same period last year. And 75 have already been passed in the first two months of current quarter.
ClearDebt added that it has seen positive cash flows from IVAs, debt management plans and IVA referrals from third parties.
Abacus (Financial Consultants) Limited, which it acquired in July 2007, is exceeding targets as a result of new management and stricter controls, it said in its trading update.
Chief executive David Mond said: “Given the severe economic background in the UK and the government’s stated intention of ensuring banks treat customers fairly, we are hopeful that the group’s businesses will continue to make substantial progress in the current year.
“Whilst it is too early to be completely confident, we believe that ClearDebt will continue to grow. With our scaleable model and total commitment to the highest of ethical standards, we look forward to the future with more confidence than at any time since admission.”
At the end of November the company received £250,000 in damages and costs after it sued an organisation called the IVA Council over claims it mis-sold individual voluntary arrangements.
