Share Name Share Symbol Market Type Share ISIN Share Description
Debtmatters Group LSE:DEBT London Ordinary Share GB00B09HB648 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 7.26p 0.00p 0.00p - - - 0.00 05:00:10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
- - - - 1.79

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DateSubject
22/9/2008
12:38
mrphil: sponges - I take it you mean the LMH offer in which case as it isn't a rights issue, if you don't take up the offer it just lapses. Personally, I won't be bothering to take up the offer and if you are thinking of doing so you should look at the current share price as you could possibly buy them at no more than that price on the open market.
08/1/2008
19:29
twentyoneeleven: Peace Breaks Out In The IVA Sector... http://www.investorschronicle.co.uk/MarketsAndSectors/Sectors/article/20080108/1261bbf8-bd0a-11dc-9a55-00144f2af8e8/Dealing-with-dodgy-debt.jsp Dealing with dodgy debt Created: 8 January 2008 Written by: Jonas Crosland A truce has been called between leading lenders and providers of individual voluntary arrangements (IVAs) that should mark an end to the bitter acrimony that plagued insolvency practitioners for much of last year. While IVAs have only recently become a subject of serious contention, they have actually been around for some time - they were introduced in 1986 as part of the Insolvency Act, primarily for use by small businesses. An IVA is an agreement between an overburdened debtor and his or her creditors to repay a fixed monthly amount for five years. In return, all interest charges are suspended and creditors agree not to pursue any further claims on the money outstanding. The amount repaid can be as little as 25 per cent of the outstanding amount. This may sound like a raw deal for creditors but it is better than making someone bankrupt, which is not only a costly process but carries with it the prospect of getting back no money at all. However, after two decades, lenders began to feel the rules of the game needed some changing. So, following a year at loggerheads, IVA providers, working as insolvency practitioners (IPs) and represented by the Debt Resolution Forum, have thrashed out an agreement with the credit industry, represented by the British Bankers' Association . The deal incorporates a new fee structure and sets industry standards for advertising, advice, information and documentation. And with the big high street banks signing up, IVA providers can at last start to look forward to more visible revenue streams, although the business will be done on much less favourable terms. The new fee structure is not yet set in stone, but the broad principle is that instead of receiving an upfront commission, IPs will now earn their income from the first four or five months of contributions made by a debtor. Clearly, this provides an incentive to ensure that debtors can meet their agreed payments while also encouraging IPs to make sure they repay as much as possible.. Before the new agreement, a new IVA was worth around £2,700 to an IP, plus a monthly management fee of £78, giving a total income per IVA of about £7,400. Based on the new system, IPs are now likely to receive about a third as much income per IVA from an the average-sized problem debt. Still, creditors and debtors as well as IVA providers had been happy with the old way of doing things until it became clear that some unscrupulous operators were pushing individuals into inappropriate IVAs and taking their commission up front. In many cases, once the IPs had pocketed their cash, debtors failed to maintain payments forcing banks to write off increasing amounts of bad debt. This had the unpleasant side-effect of highlighting just how sloppy their lending criteria had been in the first place. So, last year, creditors put their foot down. Without the approval of 75 per cent of the creditors, an application for an IVA will fail. This was painful all round, but hit the legitimate IVA providers the hardest. Accuma , for example, saw its share price plummet by 92 per cent to just 21p at one stage. All this came at a time when margins were already being squeezed by increased advertising costs and a sharp rise in the number of IP firms, to over 600. Obviously, the situation could not be left unresolved, but it has taken a year of negotiations for the truce to be declared. It looks like this could have come in the nick of time. Accountancy firm Grant Thornton is predicting that personal insolvencies will jump this year to 120,000, almost triple the amount in 2004, and the average owed by problem debtors has now hit £30,000. So the potential increase in demand could mitigate some of the pressure the new fee arrangement will put on margins. Indeed, after the UK's annual Christmas spending binge, like anything else taken to excess, there is usually a hangover. And for many consumers this really starts to set in when bills begin to land on the doormat in January. In fact, the frenzied spending of someone else's money has now reached the stage where consumer debt is greater than the value of the UK's annual gross domestic product (GDP), and current estimates suggest that over 9m credit-card holders are struggling to keep up with their payments. What's more, there is evidence to suggest that over 4m people are still paying off debts from Christmas 2006. In previous years, extended credit facilities and the ability to pay off debt by remortgaging the house effectively put off the evil day when loans had to be repaid. But neither of these options is now on the table. Credit card companies are cutting borrowing limits and applying much tougher lending criteria, while stagnating house prices have severely curtailed the ability to remortgage. And it gets worse. Around 1.4m homes face mortgage repayment increases of up to £200 a month when fixed-rate deals taken out two years ago come to an end, due to interest rate rises over the past two years. Add to that the spiralling cost of gas, electricity and petrol, and the picture is pretty gloomy. A vast majority of people in debt will get by with a bit of time-honoured belt-tightening, but for some it is already too late. So, having taken the pain of the new fee structure, IPs will now be rubbing their hands.
07/10/2007
23:05
pork belly: Daily Mail 05 Oct 07 http://www.thisismoney.co.uk/credit-and-loans/article.html?in_article_id=425038&in_page_id=9 Lifeline in prospect for debt casualties Alan O'Sullivan, This is Money 5 October 2007 A dispute in the debt management industry could help those teetering on the brink of bankruptcy who are willing to work hard to free themselves of debt, according to banks. There will be a shift in the Individual Voluntary Arrangements (IVA) industry over the next few years towards helping those who can live on a tight budget to escape bankruptcy and a corresponding move away from those in unsalvageable situations who should file for bankruptcy outright. IVAs are an alternative to bankruptcy in that they allow people with debts to agree a five-year deal of fixed repayments with their creditors, in return for paying less than their original loans. However, banks have been paying IVA providers lower fees for these arrangements recently, as they are eager to clamp down on their bad debts following the recent credit crunch. A raft of debt management companies suffered a dramatic fall in their share prices earlier this week as a result, after a leading player in the industry said that it could not make enough money from IVAs to remain profitable. The company, Debtmatters, saw its share price fall 73% on Monday after it announced a profit warning. The shares of several companies followed suit: Accuma and Debts.co.uk fell 23% and 21% respectively. Some of these providers have lashed out at banks for scuppering a valuable lifeline for those hoping to avoid bankruptcy. But the banks have now hit back by saying the IVA industry has become 'inefficent' and needs to refocus on those customers that have a chance of recovering at least some of their debts. The director of the British Banking Association, Eric Leenders, has said many inefficient providers will be pushed out of the market, which he pointed out is good news for those struggling to overcome bankruptcy. These providers will be replaced by competitors that can survive on lower bank fees because they will only take on customers that are willing to work hard to restructure their debt, instead of those who are unwilling to stick to an IVA's five-year budget. Customers will benefit because more time will be spent advising those that are genuinely willing to work hard to become debt free; providers will benefit from the increased revenue from banks for completed deals. IVA providers have been criticised in the past for extensive advertising aimed at coaxing people that would often be more suited to filing for bankruptcy into an IVA with promises of reducing their debt by up to 75%. This has allowed some providers to remain in the market by earning fees of up to £7,000 from these cases before eventually passing them on into bankruptcy after the arrangements fail, said Leenders. He said: 'IVAs are being provided at different costs, but they are essentially the same product, so the more expensive players will be driven from the market. There is no doubt that the apocalyptic view being expounded by some is down to the fact they can't provide the service at the right price. 'There is a plethora of providers and some can produce the IVA more efficiently than others. We are now moving to a market where those who recover more debt, get more out of the transaction. The more efficient providers out there will win out and their customers will be the better for it.' The government's Insolvency Service does not have any figures on the most popular IVAs or those that have the least amount of customers who are unable to stick to their IVA budget. However, Leenders recommended the Consumer Credit Counselling Service (CCCS) and Paypal to customers as they are likely to survive the current IVA squeeze. Another IVA provider, Debt Free Direct, ended Monday down 29%. But it has a significant base of 11,000 IVA customers for which fees have already been paid, which it believes will help it to ride out the IVA crisis. Over the past year it has seen its income move away from upfront fees paid by banks to performance-related bonuses.
05/10/2007
13:07
ihavenoclue: pork belly - 5 Oct'07 - 13:36 - 2707 of 2714 again, this is the death knell statement that will crucify this company: "Debtmatters said it may no longer be able to deliver its IVA business profitably if these fee modifications become the norm." The whole point of a business is to make a profit. If they can no longer operateprofitably then they will either go bust or be bought out. As the iva industry is still in danger of total collapse due to the new fee system being considered then any other companies considering a bid will also go bust leaving nobody to buy them. period. =================================================================== IVA's are one part of DEBT's business ... not all of it as you seem to suggest. You are obviously just trying to deramp. From RNS :- "Debt management division Since its launch in July 2007 the debt management division has performed well. The initial team of 15 has been increased to 28 by redeployment of staff from the IVA division. Volumes of enquiries and the conversion rate to debt management plans are in line with the Boards' expectations and the division, at this early stage, has made a pleasing start and further progress is anticipated during the second half. Loanmakers The loan broking subsidiary, acquired in June 2006, continues to perform well and is growing in line with expectations. Relationships with lenders remain strong and further steady growth is anticipated. New sources of referrals are being developed and the business is well placed to progress in the second half of the financial year. IVA division In contrast, the continued uncertainty surrounding the IVA markets has been well documented. IVA case acquisition costs have risen sharply in the face of rising competition, and IVA conversion rates have worsened due to hardening creditor attitudes which have impacted on margins. During the period, discussions hosted by the British Bankers Association and the Insolvency Service have continued. However, the process did not provide any firm conclusions on the issue of fees charged by insolvency practitioners and this has led to well publicised concerns over the future of the industry. These concerns have precipitated the continued share price weakness in the sector from which Debtmatters has not been immune. During September we started to see certain creditors seeking to modify IVA proposals such that on Debtmatters' cases, average nominee and supervisory fees would be reduced. The impact of these additional changes on the IVA business could be significant. Should these fee modifications become the norm then we may no longer be able to deliver IVAs profitably. Consequently, for the moment the Board has decided to suspend all direct advertising on TV, radio and through the press. In addition, the IVA division, which has built a significant infrastructure over the last two years since flotation, will be scaled back, with staff being redeployed into other areas of the business as appropriate." ---------------------------------------------------------------------- Only the IVA part of the business is not operating profitably so not going to go bust. Notice the statement where it said it was redeploying staff. It's debt mananagement arm has doubled in 3 months. Please state ALL the facts and not a one sided view if you want to be taken seriously. The company has taken a large blow but not a killer blow. Daniel Stewart mentioned two alternatives for the company, to be bought out or run-off of IVAs, currently 9000 in system, and continuing with what they currently have elsewhere. I feel it is a very risky buy at present but can't see the company going bust. Regards IHNC
05/10/2007
07:51
diogenesj: Welshwiz: I think it's you who can't (or won't) read. It's no good relying on Shares Rag for your information. DEBT is not going to survive. The management are hoping to find someone to buy it. There is no certainty that they will succeed. Here is the Thomson financial summary of the results on 1 October. See the statement in DEBT's results of the same date for the full story. LONDON (Thomson Financial) - DebtMatters Group PLC said it is undertaking a full strategic review to consider all options for the company, which include seeking a possible offer, due to the potential impact of fee modifications on its individual voluntary arrangement (IVA) business and continued disappointing share price. The financial services company said it is encouraged by the performance of its loanmakers and debt management operations but the IVA sector remains difficult. It said the outcome for the year depends on continuing developments within the IVA sector, which remain uncertain. IVA case acquisition costs have risen sharply due to increasing competition and IVA conversion rates have worsened due to hardening creditor attitudes, which have affected margins. Although talks have continued between the British Bankers Association and the Insolvency Service, they did not provide any firm conclusions on the issue of fees charged by insolvency practitioners, leading to concerns over the future of the industry, Debtmatters said. "These concerns have precipitated the continued share price weakness in the sector from which Debtmatters has not been immune," it added. The company said certain creditors sought modifications to IVA proposals in September with regard to a reduction in its average nominee and supervisory fees. Debtmatters said it may no longer be able to deliver its IVA business profitably if these fee modifications become the norm. At 10:45 am, shares fell 64.4 pct or 43.50 pence to 23.15 pence.
30/8/2007
07:32
quepassa: These are similar and valid arguements which have been put forward for over a year now. But the share price has now cratered from 360p to the current 80p. Sentiment remains dreadful in the sector. It is this negative sentiment which is far outweighing any factors based on relatively positive fundamentals for the individual company. This stock is badly hit by its perceived connection with the sub-prime market. The arguements that this company must benefit from rising interest rates and consequent rise in problems and defaults encountered by borrowers would appear to be sound and logical. But this does not translate through to supporting the share price. When the share price had fallent to 90p, I forecast a further fall to circa 60p. I hold my forecast. All IMO. DYOR QP
13/6/2007
15:16
quepassa: ok maybe the meaning was a new low since the recent peak. However, in fairness, if you are a serious investor in Debtmatters you cannot ignore the share price movements in the direct sector comparisons such as DFD and Accuma. - That is actually good sector-related information. In my personal opinion, a lot of the movement in Debtmatter's share price is a direct result of the share price movement in DFD, Accuma and brethren and is also a reflection of sector sentiment.
01/2/2007
00:12
pork belly: Again, just look at the last line: "...and this means that its shares are currently trading on a multiple of less than eight times prospective earnings! In our opinion, this is an ideal buying opportunity. Buy." From WWW.THEWRONGPRICE.COM 29/01/2007 Buy 167p Debtmatters Friday's profit warnings from Accuma Group and Debt Free Direct caused wholesale panic among investors in AIM's IVA (Individual Voluntary Arrangement) sector. Accuma blamed a poorly executed marketing strategy on its own part for slower than expected growth in the first half of its financial year, but its complaint of increased resistance among 'a small minority of creditors... impacting IVA approval rates' helped to cause share price falls across the board for AIM's other IVA arrangers. After the market closed on Friday, Debt Free Direct revealed that increased competitor advertising had reduced response rates from potential IVA clients in November, December and January. Consequently, it warned that the final quarter of its 2007 financial year (which ends in April) would be challenging. However, the company was dismissive of recent 'creditor posturing', and indicated its belief that peace will break out with creditors over the coming months. Debt Free Direct still expects that profitability in 2008 will be comfortably in line with current market expectations. The weekend business press (rather predictably) had a field day, and warned that tougher rules for the IVA sector would be forthcoming that would put further pressure on profits. However, on Monday morning, debts.co.uk – which joined AIM last summer – released a statement in which it reported that first-half trading had been up to its best expectations and in line with market forecasts. Soon afterwards, Debtmatters itself announced that its IVA and loan broking businesses are trading in line with market expectations. Clearly not every IVA arranger is feeling the pinch, and even Debt Free Direct seems to be indicating that current problems are mainly of a temporary nature. But Debtmatters' reassurance means that the earnings per share estimate for the year to 31 March of 23.1p can be relied upon, and this means that its shares are currently trading on a multiple of less than eight times prospective earnings! In our opinion, this is an ideal buying opportunity. Buy.
01/2/2007
00:12
pork belly: Just read that bottom line: "Those numbers place Debtmatters on a forward p/e of only 11.2, a rating that looks woefully low given the dramatic earnings growth forecast by the market"...and that was when DEBT were 270.5p ! GROWTH COMPANY INVESTOR http://www.growthcompany.co.uk/recommendations/30191/debtmatters.thtml 22/11/2006 Despite controversy in its sector, debt solutions counter Debtmatters is on a veritable growth tear. In an exuberant interim results statement, the group reported strong trading across the business and boasted full year figures would smash forecasts, prompting upgrades from City number crunchers. For the half to September, there was rapid 465% revenue growth to £13.8m and a near 500% surge in pre-tax profits to £4.4m. The figures were boosted by an initial contribution from Loanmakers, the loan brokerage bought in June, which contributed £4.3m to the top line and has made an excellent start to life under Debtmatters ownership. Yet the real story was the core IVA business. It continued to perform well with demand for IVAs remaining buoyant in a market that shows no signs of growth abatement. Debtmatters processed 636 IVAs alone in a record September, a 275% increase on the number processed in September 2005. The debt solutions/IVA sector has, of course, attracted a great deal of negative criticism from retail banks, newspapers and broadcasters - not to mention various political quarters – all of which adds a greater degree of risk to the shares. However, Debtmatters and its quoted rivals insist greater regulation of the debt industry will allow the higher quality players to differentiate themselves and squeeze out unscrupulous rivals. Charles Stanley's Ben Archer upped his full year profits estimate on the back of these effusive figures. For the year to March, he sees normalised pre-tax profits burgeoning from £2.6m to £9m, from a dramatic top-line leap to £31.7m (£7.8m), giving earnings of 24p a share. Those numbers place Debtmatters on a forward p/e of only 11.2, a rating that looks woefully low given the dramatic earnings growth forecast by the market. Buy. James Crux Market cap: £66.58m PE Forecast: 11.2 Share price: 270.5p
29/1/2007
09:33
pork belly: GROWTH COMPANY INVESTOR http://www.growthcompany.co.uk/recommendations/30191/debtmatters.thtml 22/11/2006 Despite controversy in its sector, debt solutions counter Debtmatters is on a veritable growth tear. In an exuberant interim results statement, the group reported strong trading across the business and boasted full year figures would smash forecasts, prompting upgrades from City number crunchers. For the half to September, there was rapid 465% revenue growth to £13.8m and a near 500% surge in pre-tax profits to £4.4m. The figures were boosted by an initial contribution from Loanmakers, the loan brokerage bought in June, which contributed £4.3m to the top line and has made an excellent start to life under Debtmatters ownership. Yet the real story was the core IVA business. It continued to perform well with demand for IVAs remaining buoyant in a market that shows no signs of growth abatement. Debtmatters processed 636 IVAs alone in a record September, a 275% increase on the number processed in September 2005. The debt solutions/IVA sector has, of course, attracted a great deal of negative criticism from retail banks, newspapers and broadcasters - not to mention various political quarters – all of which adds a greater degree of risk to the shares. However, Debtmatters and its quoted rivals insist greater regulation of the debt industry will allow the higher quality players to differentiate themselves and squeeze out unscrupulous rivals. Charles Stanley's Ben Archer upped his full year profits estimate on the back of these effusive figures. For the year to March, he sees normalised pre-tax profits burgeoning from £2.6m to £9m, from a dramatic top-line leap to £31.7m (£7.8m), giving earnings of 24p a share. Those numbers place Debtmatters on a forward p/e of only 11.2, a rating that looks woefully low given the dramatic earnings growth forecast by the market. Buy. James Crux Market cap: £66.58m PE Forecast: 11.2 Share price: 270.5p
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