Maiden profit for ClearDebt

A MANCHESTER debt management group is celebrating its maiden profit and predicting a busy year as more people experience financial woes in the deepening recession.

ClearDebt, which is headed by chief executive David Mond, revealed a pre-tax profit of £101,400 in the six months to December 31, compared to a loss of £581,700 last time.

Revenue increased from £795,000 to £1.4m.

The group said the number of IVAs passed in the period had more than doubled to 200 compared to 93 in 2007, while its debt management arm, Abacus, saw the number of plans provided  soar to almost 4,000.

In the first two months of 2009, 70 IVAs were passed compared to 47 in the same period in 2008, and the group said that as the current economic environment creates increasing demand for personal debt resolution, it is in a position to cope with the substantial growth.

Mr Mond said: “The group is becoming a major player in the industry. As a profitable and highly scaleable debt resolution group, we are confident that we will be able to manage our growth for the benefit of our shareholders. 

“The combination of the wider economy forcing more individuals into debt, our diversified and scaleable business model and crucially the realisation by the major lenders that a well-designed IVA is in their interests leads us to believe that prospects for further growth are encouraging for the foreseeable future.”