Debt Free Direct Share Discussion Threads

[mike61] 20/6/2007 09:24

DEBT soared yesterday, but their house broker has forecast that their 2008 profits will drop from £8.6mln (2007) to £5.6 mln (2008). IVAs in the second half of 2006/7 had dropped from 503 per month to 250 per month.

Reduction in profits (apart from slowdown in take-up of IVAs in the industry) will be because creditor banks will want their cut of proceeds earlier, and DEBT, DFD and others will have to expect some of their fees later. If the IVA client fails to complete payments, the IVA providers are more likely to lose out than currently.

DFD does apparently have a cushion of 10,000 live cases, but their fee income of approx £7500 a case could be reduced after the current ongoing discussions with the banks.

[berry786] 19/6/2007 08:59

have a look at INVOCAS they have been left behind but will surely surge on their results!

[iou1lov] 19/6/2007 08:48

Debtmatters (DEBT) surging on stonking results




can see both DFD and DEBT surging 50% in the next few weeks

[berry786] 19/6/2007 08:11

great results from debtmatters today which will hopefully give this a good boost before its results next week.

[sat69] 18/6/2007 21:12

At this rate, we should hit £3 this week.

[iou1lov] 18/6/2007 18:31

today also, roll on 330p

[sat69] 15/6/2007 16:31

Another good performance. Closed at 257.5p. Maybe we will slowly tick up as we get closer to the results?

[sat69] 14/6/2007 19:00

Hi Sandbank - I remember you from TV Corp days (now Tinopolis - surely you are not still holding TIN?!)

Anyway - good news today - we badly needed this rise. I've been dipping in here all the way down to 240p (could have bought at 230p but now own half the company!) Laugh though you may, I'm still calling this all the way to 400p in the short term.

sat

[sandbank] 14/6/2007 15:17

GEARSTICK: Au contraire - it looks damn good

[sparky333] 13/6/2007 11:03

THis fall was on the cards weeks ago

ACG is now market capped at 7M compared to DFD which is 15times its market cap

do not get me wrong i am a ACG holder and it is a steal at 7M market cap and will make a good 2-3M profit for the year

will DFD on a like for like basis

DFD's result will be good it is the outlook everyone is watching

[gearstick5] 13/6/2007 10:50

Looks bad.

[sat69] 13/6/2007 08:53

The below trading update was given on 3rd May 07, when the share price was at around 350p. Nothing has changed since then, so the share price is clearly now heavily oversold on the back of nervousness about the forthcoming results. I fully expect a major bounce back to over £3 by the end of the month...

Debt Free Direct Gro Debt Free Direct sees FY pretax in line with market consensus UPDATE

LONDON (Thomson Financial) - Debt Free Direct Group PLC said it sees
full-year adjusted pretax profits in line with market expectations at 8.5 mln
stg and that it remains very confident in its strong position despite an IVA
market riddled with competition and creditor pressures.
The debt advice company said turnover has grown 72 pct in the year to
end-April, and that it expects profitability in the current year to be broadly
in line with current market expectations as the positive impact of its new DFD
Mortgages and debt management plans units offset higher IVA costs.
The company also said its operations in Australia continue to meet
expectations, and said it expects the business to become profitable in the
financial year 2009.
Debt Free Direct also said its loan and mortgage business continues to make
"encouraging progress" and shows better case conversions. The company expects
revenues from this unit to grown in excess of 4.5 mln stg in the new financial
from 2.1 mln in the year to April.
The company said its new income stream from debt management plans "has been
in line with early expectations" since its launch in January, with revenue
expected to grow to 0.9 mln stg in the current year.

[sat69] 12/6/2007 10:33

Added this morning. As there has not been any update, we have to assume that their previous guidance is still intact, in which case the share price is looking very cheap again.

[marksarjant] 12/6/2007 09:30

Prelims out on June 26th...not looking too good if this price movement is anything to go by... Is there any new info out there or is this just a continuation f the trend?

[richardbees] 22/5/2007 12:31

No, they've been hammered by the ASA for misleading advertising....

[twentyoneeleven] 21/5/2007 12:34

By people who had gotten themselves significantly into debt and now can't actually write it all off as they thought, by any chance?

[richardbees] 21/5/2007 12:31

Debt Free Direct just got a right slagging-off on R4 'you and yours' in re misleading advertising....

[twentyoneeleven] 21/5/2007 09:18

Simon Cawkwell - 21 May'07 - 08:39 - 102 of 103

Gentlemen,

If the MoS story is correct that DFD's revenue per case is to drop from £8,000 to £4,500 and that receipts will be delayed I do not see how DFD is worth more than 100p.

Simon Cawkwell

Have you got a link to this please Simon?

[shrewd_n_sharp] 21/5/2007 08:59

I'm afraid gentlemen, but although interest rates rises are good for a debt market but a good market does not necessarily translate into a profitabale business. Stop looking at the P/e ratio and start to consider price-to-cashflow ratio instead to get a better health check on the business. Then look at how much share dilution is happening each year just to cover opex and capex. Is anyone spotting the obvious yet?

[simon cawkwell] 21/5/2007 08:39

Gentlemen,

If the MoS story is correct that DFD's revenue per case is to drop from £8,000 to £4,500 and that receipts will be delayed I do not see how DFD is worth more than 100p.

Simon Cawkwell

[omalaha] 18/5/2007 11:22

i notice there are a fair few of these on loan..could be why this has dropped..if it is the case it's been shorted by someone, then presumably they will have to buy back at some point. sometimes loan stock is used to drive down a stock when a take over company want a large amount of stock. just a guess.

[sat69] 11/5/2007 16:35

You are right JB - we went to 310p today. We do need some positive news to lift the sector. A bid rumour would do nicely! It should happen one day in this overcrowded sector. Lets hope for something in the weekend press.

sat

[jailbird] 11/5/2007 16:17

i see a newer low today..sat69.

i am on the sidelines with all IVAs...we need some positive news from this sector..best to avoid..after all go away in may is here

[sat69] 09/5/2007 16:39

Held up well today at around 323p - despite big falls in the sector. Hopefully we have found a new low.