We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Cleardebt Grp | LSE:CLEA | London | Ordinary Share | GB0003083390 | ORD 0.5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.25 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
TIDMCLEA
RNS Number : 8475S
Cleardebt Group PLC
17 September 2010
ClearDebt Group plc
("ClearDebt" or "the Group")
Preliminary Results for the year ended 30 June 2010
Financial Highlights:
· A positive step change across all valuation metrics
+------------------------------+------------------------+---------+----------+
| | 2010 | 2009 |
+------------------------------+----------------------------------+----------+
| Revenue | GBP6.6m | GBP3.4m |
+-------------------------------------------------------+---------+----------+
| Gross profit | GBP3.3m | GBP1.4m |
+-------------------------------------------------------+---------+----------+
| EBITDA (before separate disclosable items - see note | GBP2.0m | GBP0.7m |
| 4) | | |
+-------------------------------------------------------+---------+----------+
| | | | |
+------------------------------+------------------------+---------+----------+
· Another excellent year, further improved by the acquisition of the Relax
Group plc ("Relax") back books, together with further substantial growth in the
numbers of new IVA cases approved during the past year
· Very strong and stable new cash flows from the GBP2.7m acquisition of
assets from the administrator of Relax
· Successful refinancing to pay all acquisition costs
Operational Highlights:
· Continued impressive organic growth, combined with intelligent
acquisition
· Very strong increase in new Individual Voluntary Arrangements (IVAs)
through the core ClearDebt business, particularly in the last quarter of our
financial year
· 3,700 IVAs and Protected Trust Deeds (PTDs) added through acquisition of
the Relax book
· Total number of IVAs and PTDs generating income was 4,894 as at 30 June
2010 (2009: 858)
· 6,316 Debt Management Plans (DMPs) managed through Abacus and Relax
(2009: 3,430)
Outlook:
· Continue organic growth due to prevailing socio-economic conditions and
successful operational development
· New acquisition opportunities constantly being explored
· Kaizen based scaleable model reduces acquisition risk
· Integrated growth strategy to drive business forward to market leading
position
David Mond, ClearDebt CEO commented,
"The IVA market has continued to grow strongly and ClearDebt has substantially
increased the numbers of IVAs it has dealt with and continues to outperform the
growth rate in the wider market as we continue to increase market share.
The last quarter of the financial year produced a record number of IVAs for the
Group and this figure has almost been equalled in the first quarter of our new
financial year after only two months of the period. Our overall conversion of
leads as a Group across all solutions remains excellent and, whilst we have seen
a slowing in the rate of acquisition of DMP plans, our view is that we are
merely experiencing a shift to a higher proportion of clients for whom an IVA is
the more appropriate solution.
Given the current economic outlook in the UK, with unemployment showing no signs
of falling, together with further tax rises and public sector cuts to come in
the short to medium term, I believe the Group is well placed for another highly
profitable and successful year - without any further acquisitions. We remain
delighted with our organic growth, but also are entirely open to the
possibilities of acquisition, due to our unique Kaizen based scaleable business
model."
17 September 2010
For further information, please contact:
+----------------------------------+----------------------------------+
| ClearDebt Group plc | David Mond, Chief Executive |
| | Officer |
| | Tel No: 0161 968 6805 |
+----------------------------------+----------------------------------+
| Seymour Pierce Limited | John Cowie/Guy Peters (Nominated |
| | adviser) |
| | David Banks/Katie Ratner |
| | (Broker) |
| | Tel No: 020 7107 8000 |
+----------------------------------+----------------------------------+
Chairman's Statement
I am delighted to present the Group's financial statements for the year ended 30
June 2010. The Group performance, particularly from the IVA division, has been
especially pleasing and has been marked by a step change in the number of new
IVAs being passed each month and of course by the acquisition of the back books
from Relax Group plc ("Relax") for GBP2.7m in December 2009.
The Group's financial performance was very strong. Whilst the Group made a
pre-tax profit in the year of GBP465,709 (2009: GBP460,923) this has to be
considered in light of the Relax acquisition costs amounting to GBP527,819
(including finance costs of GBP78,346), amortisation relating to the back books
of GBP944,234 and partially offset by a profit on the bargain purchase of the
back books of GBP252,914. The financial and operating performance of the Group
can be better judged by the massive gains in revenue, gross profit and profit
before interest, tax, depreciation and amortisation when compared to the
previous year.
I am pleased to say that the Group has successfully rationalised and integrated
the Relax acquisition with some 6,500 new clients being added more than doubling
the client base of the Group. These clients are spread across a whole spectrum
of IVAs, DMPs and for the first time PTDs - giving us the capacity to take in
house cases based in Scotland for PTDs which were previously outsourced.
The Group's statement of financial position shows net assets of GBP5,016,621
(2009: GBP4,535,318) including cash of GBP541,504 (2009: GBP584,593) and has
been strengthened by the raising of new monies in April via a convertible loan
issue raising GBP2.3m to finance the GBP2.7m acquisition and associated costs.
The Group finances are on a sound footing and we look to continue to achieve
strong growth in the client base through the acquisition of further back books
as well as through organic growth with cost efficient marketing activity and
referral relationships. We have made a very good start to the first quarter as
regards new IVA business and I look forward to another profitable year.
Gerald Carey FCIB
Chairman
17 September 2010
Chief Executive's Statement
The Group has enjoyed another excellent year which has been further improved by
the acquisition of the Relax back books for GBP2.7m together with further
substantial growth in the numbers of new IVA cases approved during the past
year.
In December 2009 we acquired some 6,500 new clients through the back book
purchase of IVAs, PTDs and DMPs from the Administrator of Relax together with
certain staff and offices in Chesterfield where Relax were based. This
acquisition nearly tripled the number of clients within the Group and provided
us with additional experienced staff in the IVAs and DMPs areas as well as in
PTDs, allowing us to take in house the processing of new PTDs going forward
which were previously referred externally.
I am pleased to say that the operations in Chesterfield have been successfully
restructured and integrated into the Group with the vast majority of clients now
transferred onto our back office systems and the staff relocated locally to
Staveley, Chesterfield in new offices much more appropriate to the size of
operation.
I would like to take this opportunity to thank all the new and existing staff in
the Group for their dedication and hard work over the last nine months in
bringing this process to a successful completion.
The timing of cash flow from the Relax acquisition in particular has been well
above our forecasts and overall we expect the ultimate realisations to be ahead
of our initial estimates that were anticipated last December. We continue to
make rapid progress in closing these cases with over 500 closed since December
which is as expected given the profile of cases which were mainly recruited in
2007/8 and prior years. As Relax workload falls the existing Staveley staff can
be utilised to look after new cases recruited to the Group which will avoid the
need for further recruitment in the short term. We continue to look for further
purchases of IVA and/or DMP back books to leverage our efficient systems.
Abacus has not been able to grow its DMP plans as aggressively as hoped but we
believe many of our competitors in this marketplace are also experiencing a
slowdown in the growth of DMPs. The main reason for this is that a much higher
percentage of new clients this year have converted to IVAs rather than DMPs. We
are, however, very pleased with the client retention rates both at Abacus and
Debtcare (the former Relax DMP operation) which continue to generate excellent
cash flow, forming a strong income stream and financial foundation for the wider
group. Our overall conversion of leads across the Group continues to be good.
Our policy is always to give our clients the most appropriate advice for their
circumstances, through using our proprietary algorithms and we are perhaps
seeing further acceptance from our clients that the IVA is a better long term
solution to their difficulties than the DMP. ClearDebt has always felt that
DMP's are only applicable for clients who will see a rapid recovery in their
finances.
We continue to expand our internet and other marketing activities across the
Group and are constantly exploring new opportunities for lead sources. In
addition we are closely monitoring consolidation opportunities within our
industry and the Group is well financed to capitalise on opportunities that may
arise. We have a successful history in profitably integrating acquired
businesses - both operationally and financially. We are therefore confident that
we can manage any acquisition risks. This confidence is derived from the
strength of our management, but also our systems which remain highly scaleable.
THE CONSUMER DEBT MARKET
ClearDebt Group operates within the debt resolution sector, an established
sub-category of financial services. Personal insolvencies saw a step change in
2006 with a 58% increase in individual insolvencies to over 100,000 per annum
which has been steadily maintained each year until 2009. In 2009 personal
insolvencies increased by 26% with IVAs showing growth of 22%. The first half of
2010 continues to show overall growth of 11% in personal insolvencies with IVAs
growing at nearly 15% when compared to the same period last year.
The contraction in available credit to all but those with unblemished credit
records and the slowdown in the housing market means traditional refinancing
options remain closed to the majority. Our society and those of Western
economies are now largely driven by consumer consumption financed too often
through debt and we see the debt resolution sector remaining robust in the
foreseeable future. The high levels of consumer debt and unemployment and
forthcoming tax rises and public sector cuts should continue to increase the
total level of personal debt levels; thereby increasing the market for
ClearDebt's portfolio of integrated personal debt resolution products.
We see a continued shift towards the IVA or bankruptcy solution and away from
DMPs as consumers realise that the perceived short term fix of a DMP is actually
more expensive in the longer term where a quick return to employment or an
improvement in circumstances is unlikely to happen quickly. Many DMPs take
longer than five years to clear debts even with interest and charges frozen
(which is not always the case) and so the typical five year IVA after which
debts are written off in full is increasingly more appropriate.
Against this background the government is actively looking to increase
regulation and has already started to enforce much stricter compliance
monitoring of companies in the sector and it is now much more difficult to renew
existing consumer credit licences or obtain new ones. We see this as an
opportunity for ourselves and those larger organisations with cash who maintain
the highest standards to purchase back books and consolidate the sector as the
many smaller players are unwilling or unable to comply with the increased
regulation.
THE CLEARDEBT MODEL - IVAs and PTDs
Unlike most of its major competitors in the consumer IVA market, ClearDebt has
developed a low overhead, high quality model, based on Kaizen manufacturing
principles and an intelligent internet interface - www.cleardebt.co.uk. This
model allows the company's cost base to be kept to a minimum level whilst still
providing high levels of service. It also facilitates efficient growth as there
is minimal need to hire new staff until customer number thresholds have been
breached.
Due to this distinctive operating model, ClearDebt is able to offer a more
effective debt resolution solution than many of its rivals. The model allows
ClearDebt to offer IVAs (if that is the appropriate solution) at lower cost not
only to the debtor, but also the creditor, by enhancing dividends - thereby
increasing the chance that an IVA will be approved by the creditor and completed
by the debtor, benefiting all parties involved in the proposal.
THE ABACUS MODEL - Debt Management Plans
Abacus provides services to indebted individuals by negotiating and putting in
place a debt management plan with their creditors. The debtor makes a monthly
payment to Abacus who then distributes the payment to the creditors as agreed in
the plan less an administration fee at an agreed percentage of the debtor's
monthly payment. An initial set up fee is also charged.
Such plans are suitable for individuals whose debts are more manageable and rely
on the goodwill of creditors as they are not a formal insolvency procedure and
interest usually continues to accrue on outstanding debts although some
creditors are prepared to waive the interest for short periods.
Many clients are cross referred between ClearDebt and Abacus allowing the Group
to offer an appropriate advice solution to all individuals.
As a leading member of the trade body, The Debt Resolution Forum, ClearDebt has
been in regular negotiation with the creditor community and aims to be at the
forefront of any proposals to introduce a Regulated Debt Management Plan
following the completion of the consultation process that was undertaken by the
Ministry of Justice at the end of 2009.
OPERATIONAL REVIEW
ClearDebt - IVA Division
Since 1 July 2009 (2009: 1 July 2008), the following numbers of new IVAs have
been arranged through ClearDebt:-
+----------------------+----------------------------------+-----------+
| | Year ended | Year |
| | 30-Jun-10 | ended |
| | | 30-Jun-09 |
+----------------------+----------------------------------+-----------+
| First quarter | 176 | 84 |
+----------------------+----------------------------------+-----------+
| Second quarter | 173 | 117 |
+----------------------+----------------------------------+-----------+
| Third quarter | 184 | 118 |
+----------------------+----------------------------------+-----------+
| Fourth quarter | 266 | 164 |
+----------------------+----------------------------------+-----------+
| | ____ | ____ |
+----------------------+----------------------------------+-----------+
| | 799 | 483 |
+----------------------+----------------------------------+-----------+
| | ____ | ____ |
+----------------------+----------------------------------+-----------+
The growth of new IVAs continues to be strong and ClearDebt enjoyed an excellent
year with a 65% increase in the number of IVAs passed in the year with 799 new
cases (2009: 483) and a large rise in profitability. I am pleased to say this
rate of growth has recently accelerated further as new lead sources come on
stream. Following the acquisition of some 3,700 IVAs and PTDs from Relax last
December, ClearDebt now has as at 30 June 2010 a total of 4,894 IVA and PTD's
generating income (2009: 858).
ClearDebt has made steady progress in the first three quarters of the year
before seeing a rapid acceleration in the number of new plans in the fourth
quarter following the introduction of further lead sources.
Case numbers in the first quarter of our current financial year are expected to
be well ahead of the fourth quarter with 216 cases already passed by the end of
August and a solid pipeline in hand. This first quarter tends to be one of the
quieter periods of the year for the industry due to the summer holiday period
and so this bodes well for the rest of the year.
The Board monitors several key performance indicators ("KPIs") for the business
on a monthly basis including the number of cases passed, various conversion
ratios from lead to cases passed, the cost per case acquired and the staff to
caseload numbers. Your Board is pleased to advise that these KPIs are delivering
positive messages about the business.
Abacus- Debt Management Division
The division made a small profit in the period having achieved profitability for
the first time last year although we have seen a slowdown in the recruitment of
new clients and an increase in the number of plans that cease as the age of the
relatively young DMP book at Abacus matures. There have also been a number of
clients who have ceased a DMP and commenced an IVA with us.
In the year 2009/10, Abacus has arranged 2,366 new plans (2008/9: 2,856). In
December 2009 we acquired some 2,800 DMP plans from Relax and as at 30 June 2010
the total number of debt management plans generating income was 6,316 (2009:
3,430). Our attrition rates on DMPs are well within our normal expectations and
we are actively looking for further back books to acquire as a means of boosting
income over the short and medium term.
The Board has KPIs to monitor the number of active income generating plans as
well as the value of monthly payments made by debtors. Revenue is only
recognised by Abacus upon receipt of fees which are drawn from debtor payments
as received.
The costs of acquisition of cases and plans are also monitored closely. We
continue to resist the temptation to grow the book through lead sources
providing leads at what are, in our view uneconomic prices.
FINANCIAL REVIEW
Group turnover more than doubled to GBP6.63m (2009: GBP3.39m) following the
Relax acquisition and increased growth in the insolvency business. Gross profit
more than doubled to GBP3,300,688 (2009: GBP1,436,365), largely as a result of
the Relax acquisition and continued growth in the insolvency division.
Administration and finance costs also included one-off acquisition related items
totalling GBP449,473 and GBP78,346 respectively.
In April 2010 we successfully issued to investors GBP2.3m of 3 year 10% secured
convertible loan notes which are listed on the Channel Islands Stock Exchange
(CISX) via our wholly owned subsidiary CDG (Guernsey) Limited. This comprised
GBP1.8m of investment from new investors and the conversion into the loan notes
of GBP0.5m of the GBP1.2m loan due to D E M Mond.
Cash resources at the year end amounted to GBP541,504 and cash flow remains
strong leaving the Group on an excellent financial footing to finance further
back book acquisitions as opportunities present themselves.
GOING CONCERN
As part of its going concern review the Board has followed the guidelines
published by the Financial Reporting Council entitled "Going Concern and
Liquidity Risk: Guidance for UK Companies 2009. The Board has prepared detailed
financial forecasts and cash flows for the three years to 30 June 2013 and in
drawing up these forecasts the Board has made assumptions based upon its view of
the current and future economic conditions in the UK that will prevail over the
forecast period - given that the business is likely to be solely focused on the
UK market for the foreseeable future. The timing of the cash flows and covenants
to the debt holders in respect of loans provided have been taken into
consideration and in addition to the forecasts we have also produced
sensitivities to these forecasts to test our ability to trade as a going concern
for at least the following 12 months based upon a 20% rise or fall in projected
turnover without any reduction in overhead costs. In practice the Board believes
that it can quickly realign overheads, in particular marketing spend, to allow
for any reduced levels of activity within the business that may occur going
forward.
The Board believes that the use of the going concern basis of accounting is
appropriate because there are no material uncertainties related to events or
conditions that may cast significant doubt about the ability of the company to
continue as a going concern.
FUTURE OUTLOOK
The IVA market has continued to grow strongly and ClearDebt has substantially
increased the numbers of IVAs it has dealt with and continues to outperform the
growth rate in the wider market as we continue to increase market share.
Whilst we have seen a slowing in the rate of acquisition of DMP plans, our
overall conversion of leads as a Group across all solutions remains excellent
and we are merely experiencing a shift to a higher proportion of clients for
whom an IVA is the more appropriate solution. The last quarter of the financial
year produced a record number of IVAs for the Group and this figure has almost
been achieved after only two months of the first quarter of the new financial
year.
Given the current economic outlook in the UK with unemployment showing no signs
of falling, together with further tax rises and public sector cuts to come in
the short to medium term, I believe the Group is well placed for another highly
profitable and successful year - without any further acquisitions. We remain
delighted with our organic growth, but also are entirely open to the
possibilities of acquisition, due to our unique Kaizen based scaleable business
model.
Once again I would like to pay tribute to all our employees who continue to
offer the highest standards of service and commitment to all our clients at all
levels and without whom the company would not be where it is today.
David Emanuel Merton Mond FCA FCCA
Chief Executive Officer
17 September 2010
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2010
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | Before | Separately | Total | Total |
| | | separately | disclosable | | |
| | | disclosable | items | | |
| | | items | (Note 4) | | |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | 2010 | 2010 | 2010 | 2009 |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| |Notes | GBP | GBP | GBP | GBP |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Revenue | | | | | |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| - ongoing | | 4,032,905 | - | 4,032,905 | 3,386,935 |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| - acquisitions | | 2,601,090 | - | 2,601,090 | - |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | _________ | _________ | ________ | ________ |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | 6,633,995 | - | 6,633,995 | 3,386,935 |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | | | | |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Cost of sales | | (3,333,307) | - | (3,333,307) | (1,950,570) |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | _________ | _________ | ________ | ________ |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Gross profit | | 3,300,688 | - | 3,300,688 | 1,436,365 |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | | | | |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Administrative expenses | | (1,293,371) | (449,473) | (1,742,844) | (693,335) |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Share based payment | | (42,573) | - | (42,573) | - |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | _________ | _________ | ________ | ________ |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Profit before interest, | | 1,964,744 | (449,473) | 1,515,271 | 743,030 |
| tax, depreciation and | | | | | |
| amortisation | | | | | |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | | | | |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Depreciation | | (102,875) | - | (102,875) | (90,279) |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Amortisation | | (993,980) | - | (993,980) | (76,623) |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Gain on bargain purchase | | - | 252,914 | 252,914 | - |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | _________ | _________ | _________ | _________ |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Profit from operations | | 867,889 | (196,559) | 671,330 | 576,128 |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | | | | |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Finance costs | 5 | (128,314) | (78,346) | (206,660) | (126,600) |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Finance income | | 1,039 | - | 1,039 | 11,395 |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | _________ | _________ | ________ | ________ |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Profit before taxation | | 740,614 | (274,905) | 465,709 | 460,923 |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | | | | |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Taxation | 6 | (200,447) | 76,973 | (123,474) | (53,861) |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | _________ | _________ | ________ | ________ |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Profit after taxation for | | 540,167 | (197,932) | 342,235 | 407,062 |
| year | | | | | |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | _________ | _________ | ________ | ________ |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Amount attributable to: | | | | | |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Owners of the parent | | | | 342,235 | 407,062 |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | | | ________ | ________ |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | | | | 0.13p |
| Earnings per ordinary | 7 | 0.18p | (0.07p) | 0.11p | |
| share - basic (pence) | | | | | |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| Earnings per ordinary | | 0.18p | (0.07p) | 0.11p | 0.13p |
| share - diluted (pence) | | | | | |
+----------------------------+-------+-------------+-------------+-------------+-------------+
| | | _________ | _________ | _________ | _________ |
+----------------------------+-------+-------------+-------------+-------------+-------------+
The results for the period are derived from continuing activities.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2010
+----------------------------+------------------------------+---------+
| | 2010 | 2009 |
+----------------------------+------------------------------+---------+
| | GBP | GBP |
+----------------------------+------------------------------+---------+
| | | |
+----------------------------+------------------------------+---------+
| Profit for the year | 342,235 | 407,062 |
+----------------------------+------------------------------+---------+
| | | |
+----------------------------+------------------------------+---------+
| Other comprehensive income | - | - |
| net of tax | | |
+----------------------------+------------------------------+---------+
| | _______ | _______ |
+----------------------------+------------------------------+---------+
| | 342,235 | 407,062 |
| Total comprehensive income | | |
| for the year | | |
+----------------------------+------------------------------+---------+
| | _______ | _______ |
+----------------------------+------------------------------+---------+
| Attributable to: | 342,235 | 407,062 |
| Owners of the parent | | |
+----------------------------+------------------------------+---------+
| | _______ | _______ |
+----------------------------+------------------------------+---------+
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2010
+------------------------------------------+-----+-------------+-------------+
| | | 2010 | 2009 |
+------------------------------------------+-----+-------------+-------------+
| | | GBP | GBP |
+------------------------------------------+-----+-------------+-------------+
| Assets | | | |
+------------------------------------------+-----+-------------+-------------+
| Non-current assets | | | |
+------------------------------------------+-----+-------------+-------------+
| Intangible assets | | 6,765,047 | 4,537,299 |
+------------------------------------------+-----+-------------+-------------+
| Property, plant and equipment | | 227,992 | 189,800 |
+------------------------------------------+-----+-------------+-------------+
| Deferred taxation | | 163,720 | 347,940 |
+------------------------------------------+-----+-------------+-------------+
| | | _________ | _________ |
+------------------------------------------+-----+-------------+-------------+
| | | 7,156,759 | 5,075,039 |
+------------------------------------------+-----+-------------+-------------+
| Current assets | | | |
+------------------------------------------+-----+-------------+-------------+
| Trade and other receivables | | 1,153,226 | 729,310 |
+------------------------------------------+-----+-------------+-------------+
| Corporation tax receivable | | 8,372 | - |
+------------------------------------------+-----+-------------+-------------+
| Cash and cash equivalents | | 541,504 | 584,593 |
+------------------------------------------+-----+-------------+-------------+
| | | _________ | _________ |
+------------------------------------------+-----+-------------+-------------+
| | | 1,703,102 | 1,313,903 |
+------------------------------------------+-----+-------------+-------------+
| | | _________ | _________ |
+------------------------------------------+-----+-------------+-------------+
| Total assets | | 8,859,861 | 6,388,942 |
+------------------------------------------+-----+-------------+-------------+
| | | _________ | _________ |
+------------------------------------------+-----+-------------+-------------+
| Equity and liabilities | | | |
+------------------------------------------+-----+-------------+-------------+
| Equity | | | |
+------------------------------------------+-----+-------------+-------------+
| Issued capital | | 6,166,812 | 6,166,812 |
+------------------------------------------+-----+-------------+-------------+
| Share premium account | | 279,948 | 279,948 |
+------------------------------------------+-----+-------------+-------------+
| Share based compensation | | 140,387 | 97,814 |
+------------------------------------------+-----+-------------+-------------+
| Other reserves | | 96,495 | - |
+------------------------------------------+-----+-------------+-------------+
| Retained losses | | (1,667,021) | (2,009,256) |
+------------------------------------------+-----+-------------+-------------+
| | | _________ | _________ |
+------------------------------------------+-----+-------------+-------------+
| Total equity | | 5,016,621 | 4,535,318 |
+------------------------------------------+-----+-------------+-------------+
| | | _________ | _________ |
+------------------------------------------+-----+-------------+-------------+
| Current liabilities | | | |
+------------------------------------------+-----+-------------+-------------+
| Trade and other payables | | 1,009,151 | 639,807 |
+------------------------------------------+-----+-------------+-------------+
| Corporation tax payable | | - | 13,817 |
+------------------------------------------+-----+-------------+-------------+
| | | _________ | _________ |
+------------------------------------------+-----+-------------+-------------+
| | | 1,009,151 | 653,624 |
+------------------------------------------+-----+-------------+-------------+
| Non-current liabilities | | | |
+------------------------------------------+-----+-------------+-------------+
| Financial liabilities | | 2,765,350 | 1,200,000 |
+------------------------------------------+-----+-------------+-------------+
| Deferred taxation | | 68,739 | - |
+------------------------------------------+-----+-------------+-------------+
| | | _________ | _________ |
+------------------------------------------+-----+-------------+-------------+
| Total liabilities | | 3,843,240 | 1,853,624 |
+------------------------------------------+-----+-------------+-------------+
| | | _________ | _________ |
+------------------------------------------+-----+-------------+-------------+
| Total equity and liabilities | | 8,859,861 | 6,388,942 |
+------------------------------------------+-----+-------------+-------------+
| | | _________ | _________ |
+------------------------------------------+-----+-------------+-------------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2010
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| | Share | Share | Share | Other | Retained | Total |
| | | | Based | | | |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| | Capital | Premium | Compensation | Reserve | Losses | Equity |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| | GBP | GBP | GBP | GBP | GBP | GBP |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| | | | | | | |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| Balance as at 1 | 6,091,812 | 279,948 | 97,814 | - | (2,416,318) | 4,053,256 |
| July 2008 | | | | | | |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| Share issue | 75,000 | - | - | - | - | 75,000 |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| | | | | | | |
| Total | 75,000 | - | - | - | - | 75,000 |
| transactions | | | | | | |
| with owners in | | | | | | |
| their capacity | | | | | | |
| as owners | | | | | | |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| | | | | | | |
| Total | - | - | - | - | 407,062 | 407,062 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| year | | | | | | |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| | ________ | ________ | ________ | _______ | ________ | ________ |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| Balance as at 30 | 6,166,812 | 279,948 | 97,814 | - | (2,009,256) | 4,535,318 |
| June 2009 | | | | | | |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| | | | | | | |
| Equity component | - | - | - | 96,495 | - | 96,495 |
| on issue of | | | | | | |
| convertible loan | | | | | | |
| notes | | | | | | |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| Share based | - | - | 42,573 | - | - | 42,573 |
| compensation | | | | | | |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| | | | | | | |
| Total | - | - | - | - | 342,235 | 342,235 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| year | | | | | | |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| | ________ | ________ | _______ | _______ | _________ | ________ |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| Balance as at 30 | 6,166,812 | 279,948 | 140,387 | 96,495 | (1,667,021) | 5,016,621 |
| June 2010 | | | | | | |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
| | ________ | ________ | _______ | _______ | _________ | ________ |
+------------------+-----------+----------+--------------+---------+-------------+-----------+
Share capital
Share capital has arisen on the issue of shares and represents the nominal value
of shares issued.
Share premium
The share premium account arose from the issue of equity shares above the
nominal value less share issue costs.
Share based compensation
This reserve is the result of the Company's grant of equity settled share
options and warrants and measured in accordance with IFRS2 share-based payment
transactions.
Other reserves
This reserve is the result of the Company's issue of convertible loan notes in
April 2010 in accordance with IAS 32 - Financial Instruments: Presentation.
Retained losses
The retained losses reflect losses incurred to date.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2010
+----------------------------------------+-------+-------------+-----------+
| |Notes | 2010 | 2009 |
+----------------------------------------+-------+-------------+-----------+
| | | GBP | GBP |
+----------------------------------------+-------+-------------+-----------+
| Cash flow from continuing operating | | | |
| activities | | | |
+----------------------------------------+-------+-------------+-----------+
| Profit before taxation | | 465,709 | 460,923 |
+----------------------------------------+-------+-------------+-----------+
| Depreciation of property, plant and | | 102,875 | 90,279 |
| equipment | | | |
+----------------------------------------+-------+-------------+-----------+
| Amortisation of intangible assets | | 993,980 | 76,623 |
+----------------------------------------+-------+-------------+-----------+
| Gain on bargain purchase | | (252,914) | - |
+----------------------------------------+-------+-------------+-----------+
| Share based payment | | 42,573 | - |
+----------------------------------------+-------+-------------+-----------+
| Increase in trade and other | | (423,916) | (256,486) |
| receivables | | | |
+----------------------------------------+-------+-------------+-----------+
| Finance costs | | 206,660 | 126,600 |
+----------------------------------------+-------+-------------+-----------+
| Finance income | | (1,039) | (11,395) |
+----------------------------------------+-------+-------------+-----------+
| Increase/(decrease) in trade and other | | 332,252 | (105,737) |
| payables | | | |
+----------------------------------------+-------+-------------+-----------+
| | | _________ | _________ |
+----------------------------------------+-------+-------------+-----------+
| Cash generated by operations | | 1,466,180 | 380,807 |
+----------------------------------------+-------+-------------+-----------+
| Corporation tax refund | | 10,317 | 123,585 |
+----------------------------------------+-------+-------------+-----------+
| | | _________ | _________ |
+----------------------------------------+-------+-------------+-----------+
| Net cash generated by operating | | 1,476,497 | 504,392 |
| activities | | | |
+----------------------------------------+-------+-------------+-----------+
| | | | |
+----------------------------------------+-------+-------------+-----------+
| Investing activities | | | |
+----------------------------------------+-------+-------------+-----------+
| Acquisition of business and assets | 3 | (2,700,000) | (10,612) |
+----------------------------------------+-------+-------------+-----------+
| Acquisition of intangibles | | (143,728) | (23,496) |
+----------------------------------------+-------+-------------+-----------+
| Acquisition of property, plant and | | (144,251) | (36,023) |
| equipment | | | |
+----------------------------------------+-------+-------------+-----------+
| Finance income | | 1,039 | 11,395 |
+----------------------------------------+-------+-------------+-----------+
| Sale of property, plant and equipment | | 3,184 | - |
+----------------------------------------+-------+-------------+-----------+
| | | _________ | _________ |
+----------------------------------------+-------+-------------+-----------+
| Net cash used in investing activities | | (2,983,756) | (58,736) |
+----------------------------------------+-------+-------------+-----------+
| | | | |
+----------------------------------------+-------+-------------+-----------+
| Financing activities | | | |
+----------------------------------------+-------+-------------+-----------+
| Proceeds from issue of convertible | | 1,800,000 | - |
| loan notes | | | |
+----------------------------------------+-------+-------------+-----------+
| Issue costs | | (184,379) | - |
+----------------------------------------+-------+-------------+-----------+
| Interest on loans | | (151,451) | (126,600) |
+----------------------------------------+-------+-------------+-----------+
| | | _________ | _________ |
+----------------------------------------+-------+-------------+-----------+
| Cash generated by/(used) in financing | | 1,464,170 | (126,600) |
| activities | | | |
+----------------------------------------+-------+-------------+-----------+
| | | | |
+----------------------------------------+-------+-------------+-----------+
| (Decrease)/increase in cash and cash | | (43,089) | 319,056 |
| equivalents | | | |
+----------------------------------------+-------+-------------+-----------+
| Opening cash and cash equivalents | | 584,593 | 265,537 |
+----------------------------------------+-------+-------------+-----------+
| | | _________ | _________ |
+----------------------------------------+-------+-------------+-----------+
| Closing cash and cash equivalents | | 541,504 | 584,593 |
+----------------------------------------+-------+-------------+-----------+
| | | _________ | _________ |
+----------------------------------------+-------+-------------+-----------+
1. Basis of Preparation
The preliminary financial information does not constitute full accounts within
the meaning of section 434 of the Companies Act 2006 but is derived from
accounts for the years ended 30 June 2010 and 30 June 2009. The figures for the
year ended 30 June 2010 are audited. The preliminary announcement is prepared on
the same basis as set out in the statutory accounts for the year ended 30 June
2010. While the financial information included in this preliminary announcement
has been prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS), as adopted by the European
Union (EU), this announcement does not in itself contain sufficient information
to comply with IFRSs.
ClearDebt Group plc is incorporated and domiciled in the United Kingdom. The
consolidated financial information of ClearDebt Group plc set out in this
announcement is presented in Pounds Sterling (GBP), which is also the functional
currency of the parent. The consolidated financial information has been approved
for issue by the Board of Directors on 17 September 2010.
The statutory accounts for the year ended 30 June 2010 will be delivered to the
Registrar of Companies following the Company's Annual General Meeting. Statutory
accounts for the year ended 30 June 2009 have been filed with the Registrar of
Companies. The auditors' report on those accounts was unqualified and did not
contain any statement under Section 498 (2) or 498 (3) of the Companies Act
2006.
2. Segmental Information
The Group's total income, profit before taxation and net assets were all derived
from its principal activities being the provision of IVA and other financial
advice and appropriate solutions to individuals experiencing personal debt
problems. All the Group's activities were undertaken wholly in the United
Kingdom.
Year ended 30 June 2010
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| | Insolvency | Debt | Total | Insolvency | Debt | Total |
| | | Management | 2010 | | Management | 2009 |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| | GBP | GBP | GBP | GBP | GBP | GBP |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Revenue | | | | | | |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| -Ongoing | 1,444,335 | 2,588,570 | 4,032,905 | 941,491 | 2,445,444 | 3,386,935 |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| -Acquisition | 1,964,038 | 637,052 | 2,601,090 | - | - | - |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| | _________ | _________ | _________ | ________ | _________ | _________ |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Total Revenue | 3,408,373 | 3,225,622 | 6,633,995 | 941,491 | 2,445,444 | 3,386,935 |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Cost of sales | (1,522,269) | (1,811,038) | (3,333,307) | (463,787) | (1,486,783) | (1,950,570) |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| | _________ | _________ | _________ | ________ | _________ | _________ |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Gross Profit | 1,886,104 | 1,414,584 | 3,300,688 | 477,704 | 958,661 | 1,436,365 |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Administrative | (701,513) | (591,858) | (1,293,371) | (258,926) | (511,909) | (770,835) |
| expenses | | | | | | |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Share based | (19,579) | (22,994) | (42,573) | - | - | - |
| payment | | | | | | |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Separately | (363,543) | (85,930) | (449,473) | 77,500 | - | 77,500 |
| disclosable | | | | | | |
| items | | | | | | |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| | ________ | _________ | _________ | ________ | _________ | _________ |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Profit before | 801,469 | 713,802 | 1,515,271 | 296,278 | 446,752 | 743,030 |
| interest, tax, | | | | | | |
| Depreciation and | | | | | | |
| Amortisation | | | | | | |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Depreciation | (30,307) | (72,568) | (102,875) | (30,508) | (59,771) | (90,279) |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Amortisation | (468,193) | (525,787) | (993,980) | (65,373) | (11,250) | (76,623) |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Separately | 202,914 | 50,000 | 252,914 | - | - | - |
| disclosable | | | | | | |
| items | | | | | | |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| | ________ | _________ | _________ | ________ | _________ | _________ |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Profit from | 505,883 | 165,447 | 671,330 | 200,397 | 375,731 | 576,128 |
| operations | | | | | | |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Finance costs | (12,801) | (115,513) | (128,314) | - | (126,600) | (126,600) |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Finance income | 1,039 | - | 1,039 | 11,395 | - | 11,395 |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Separately | (54,776) | (23,570) | (78,346) | - | - | - |
| disclosable | | | | | | |
| items | | | | | | |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| | _________ | _________ | _________ | ________ | _________ | _________ |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Profit before | 439,345 | 26,364 | 465,709 | 211,792 | 249,131 | 460,923 |
| taxation | | | | | | |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Taxation | (116,093) | (7,381) | (123,474) | 53,266 | (107,127) | (53,861) |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| | _________ | _________ | _________ | ________ | _________ | _________ |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| Profit after tax | 323,252 | 18,983 | 342,235 | 265,058 | 142,004 | 407,062 |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
| | _________ | _________ | _________ | ________ | _________ | _________ |
+------------------+-------------+-------------+-------------+------------+-------------+-------------+
2. Segmental Information
Net operating assets are reconciled to equity funds as follows:
+------------------------------------------+---------------+-----------+
| | 2010 | 2009 |
+------------------------------------------+---------------+-----------+
| | GBP | GBP |
+------------------------------------------+---------------+-----------+
| Gross assets | | |
+------------------------------------------+---------------+-----------+
| Insolvency | 6,752,690 | 4,674,784 |
+------------------------------------------+---------------+-----------+
| Debt management | 2,107,171 | 1,714,158 |
+------------------------------------------+---------------+-----------+
| | _________ | _________ |
+------------------------------------------+---------------+-----------+
| | 8,859,861 | 6,388,942 |
+------------------------------------------+---------------+-----------+
| | _________ | _________ |
+------------------------------------------+---------------+-----------+
| Gross liabilities | | |
+------------------------------------------+---------------+-----------+
| Insolvency | 2,597,551 | 413,347 |
+------------------------------------------+---------------+-----------+
| Debt management | 1,245,689 | 1,440,277 |
+------------------------------------------+---------------+-----------+
| | _________ | _________ |
+------------------------------------------+---------------+-----------+
| | 3,843,240 | 1,853,624 |
+------------------------------------------+---------------+-----------+
| | _________ | _________ |
+------------------------------------------+---------------+-----------+
| Capital expenditure to acquire property, | | |
| plant and equipment | | |
+------------------------------------------+---------------+-----------+
| Insolvency | 86,337 | 11,715 |
+------------------------------------------+---------------+-----------+
| Debt management | 57,914 | 24,308 |
+------------------------------------------+---------------+-----------+
| | _________ | _________ |
+------------------------------------------+---------------+-----------+
| | 144,251 | 36,023 |
+------------------------------------------+---------------+-----------+
| | _________ | _________ |
+------------------------------------------+---------------+-----------+
| Capital expenditure to acquire | | |
| intangible assets | | |
+------------------------------------------+---------------+-----------+
| Insolvency | 2,260,728 | 23,496 |
+------------------------------------------+---------------+-----------+
| Debt management | 961,000 | - |
+------------------------------------------+---------------+-----------+
| | _________ | _________ |
+------------------------------------------+---------------+-----------+
| | 3,221,728 | 23,496 |
+------------------------------------------+---------------+-----------+
| | _________ | _________ |
+------------------------------------------+---------------+-----------+
| Depreciation of property, plant and | | |
| equipment | | |
+------------------------------------------+---------------+-----------+
| Insolvency | 30,307 | 30,508 |
+------------------------------------------+---------------+-----------+
| Debt management | 72,568 | 59,771 |
+------------------------------------------+---------------+-----------+
| | _________ | _________ |
+------------------------------------------+---------------+-----------+
| | 102,875 | 90,279 |
+------------------------------------------+---------------+-----------+
| | _________ | _________ |
+------------------------------------------+---------------+-----------+
| Amortisation of intangible assets | | |
+------------------------------------------+---------------+-----------+
| Insolvency | 468,193 | 65,373 |
+------------------------------------------+---------------+-----------+
| Debt management | 525,787 | 11,250 |
+------------------------------------------+---------------+-----------+
| | _________ | _________ |
+------------------------------------------+---------------+-----------+
| | 993,980 | 76,623 |
+------------------------------------------+---------------+-----------+
| | _________ | _________ |
+------------------------------------------+---------------+-----------+
IFRS 8 "Operating Segments"
IFRS 8 has been adopted during the year. Under IFRS 8, the Group is required to
identify its operating segments on the basis of internal reports about segments
of the Group that are regularly reviewed by the chief operating decision maker
to allocate resources and assess their performance. The chief operating
decision maker has been identified as the Board of ClearDebt Group plc, led by
the Chairman.
The adoption of this standard has not resulted in any change to the operating
segments previously disclosed by the Group
3. Acquisition
On 2 December 2009 the Group purchased from Relax Group plc ("Relax") the
goodwill and assets of certain subsidiaries of Relax. The assets purchased
comprised the goodwill of the IVA business which traded as Synergi Partners; the
Debt Management business which traded under the name of Debtcare; and the
Protected Trust Deeds which traded under the name of Adie Financial Services or
AFS.
The total consideration due to the Administrator was GBP2,700,000 which has been
paid in full.
The assets acquired were exclusively intangible assets represented by the future
income stream due from the collection of the back books of IVA, PTD and DMP
cases managed by each business. At the date of acquisition the fair values of
the assets purchased comprised the following:
+-----------------------------------+------------+-------------+-+----------+----------+--+
| | | Fair value | | |
| | Book value | adjustment | Fair Value | |
+-----------------------------------+------------+-------------+-----------------------+--+
| | GBP | GBP | | |
+-----------------------------------+------------+-------------+-----------------------+--+
| Other intangible assets - | - | 2,152,000 | 2,152,000 | |
| Insolvency | | | | |
+-----------------------------------+------------+-------------+------------+-------------+
| Other intangible assets - Debt | - | 926,000 | 926,000 | |
| Management | | | | |
+-----------------------------------+------------+-------------+------------+-------------+
| Deferred taxation | - | (105,840) | (105,840) | |
+-----------------------------------+------------+-------------+------------+-------------+
| Other payables | - | (19,246) | (19,246) | |
+-----------------------------------+------------+-------------+------------+-------------+
| Gain on bargain purchase | - | (252,914) | (252,914) | |
| | ___ | ________ | ________ | |
| | | | | |
+-----------------------------------+------------+-------------+------------+-------------+
| | - | 2,700,000 | 2,700,000 | |
| | ___ | ________ | ________ | |
+-----------------------------------+------------+-------------+------------+-------------+
| | | | |
+-----------------------------------+------------+---------------+------------------------+
| | | | | | | |
+-----------------------------------+------------+-------------+-+----------+----------+--+
+----------------------------+----------+-----------+----------------+
| Settled by: | | | |
| | | | GBP |
+----------------------------+----------+-----------+----------------+
| | | | |
| Cash consideration | | | 2,700,000 |
| | | | ________ |
+----------------------------+----------+-----------+----------------+
| | | | |
+----------------------------+----------+-----------+----------------+
Included in the results for the year are revenues of GBP2,601,090 and a pre tax
profit of GBP120,817 excluding the gain on purchase of a bargain asset of
GBP252,914.
We have estimated the timing of, and the expected future income
due, from the back books acquired less a provision for future expected
delinquency together with the estimated costs necessary to collect in the
income. This has been produced on a net present value basis to provide an
estimate of the fair value of the intangible assets acquired.
The fair value of the intangible assets acquired was
GBP2,952,914 which is in excess of the GBP2.7m cost of acquisition. Accordingly
under IFRS the consolidated income statement has been credited with a gain on
bargain purchase of GBP252,914 in the period and has been included in separately
disclosable items under amortisation.
4. Separately Disclosable Items
+----------------------------------------------------+-----------+----------+
| | 2010 | 2009 |
+----------------------------------------------------+-----------+----------+
| | GBP | GBP |
+----------------------------------------------------+-----------+----------+
| Administrative expenses | | |
| | | |
+----------------------------------------------------+-----------+----------+
| Expenses relating to the acquisition and | (449,473) | - |
| restructuring of the business of Relax | | |
+----------------------------------------------------+-----------+----------+
| Legal costs provision no longer required | - | 77,500 |
+----------------------------------------------------+-----------+----------+
| | | |
+----------------------------------------------------+-----------+----------+
| Gain on bargain purchase | 252,914 | - |
+----------------------------------------------------+-----------+----------+
| | | |
| Finance costs | | |
+----------------------------------------------------+-----------+----------+
| Bridging loan finance | (78,346) | - |
+----------------------------------------------------+-----------+----------+
| | ________ | ________ |
+----------------------------------------------------+-----------+----------+
| | (274,905) | 77,500 |
+----------------------------------------------------+-----------+----------+
| | ________ | ________ |
+----------------------------------------------------+-----------+----------+
On 2 December 2009 the Group acquired the back books of IVA, DMP and PTD cases
from the Administrator of Relax Group plc.
The items included in cost of sales relate to the redundancy costs associated
with the restructuring of the Relax organisation. Included in administration
expenses are various legal costs related to the acquisition, restructuring and
shareholders circular as well as additional costs and incidentals incurred as
part of the acquisition process. Included in finance costs are interest payments
made to the administrator of Relax together with interest on a bridging loan
pending the finalisation of the convertible loan fundraising.
In 2009 GBP77,500 was credited to administrative expenses in respect of legal
costs no longer required.
5. Finance Costs
+---------------------------+--------------------------------+------------+
| | 2010 | 2009 |
+---------------------------+--------------------------------+------------+
| | GBP | GBP |
+---------------------------+--------------------------------+------------+
| | | |
+---------------------------+--------------------------------+------------+
| Interest payable on loans | 115,513 | 126,600 |
+---------------------------+--------------------------------+------------+
| Interest payable on | 91,147 | - |
| convertible loan notes | | |
+---------------------------+--------------------------------+------------+
| | __________ | __________ |
+---------------------------+--------------------------------+------------+
| | 206,660 | 126,600 |
+---------------------------+--------------------------------+------------+
| | __________ | __________ |
+---------------------------+--------------------------------+------------+
6. Taxation
+--------------------------------------------+-------+----------+-+-+--------+-+
| | 2010 | 2009 | |
+----------------------------------------------------+----------+------------+-+
| | GBP | GBP | |
+----------------------------------------------------+----------+------------+-+
| Analysis of current year | | | |
+----------------------------------------------------+----------+------------+-+
| | | | |
+----------------------------------------------------+----------+------------+-+
| Current tax | | | |
+----------------------------------------------------+----------+------------+-+
| UK corporation tax payable | - | 13,817 | |
+----------------------------------------------------+----------+------------+-+
| UK corporation tax repayment due | (8,372) | - | |
+----------------------------------------------------+----------+------------+-+
| Overprovision from prior years | (15,273) | (15,412) | |
+----------------------------------------------------+----------+------------+-+
| | ________ | ________ | |
+----------------------------------------------------+----------+------------+-+
| | | | |
+----------------------------------------------------+----------+------------+-+
| Total corporation tax | (23,645) | (1,595) | |
+----------------------------------------------------+----------+------------+-+
| | ________ | ________ | |
+----------------------------------------------------+----------+------------+-+
| Deferred tax | | | |
+----------------------------------------------------+----------+------------+-+
| Temporary differences, origination and reversal | 147,119 | 150,818 | |
+----------------------------------------------------+----------+------------+-+
| Effect of tax rate changing on opening balance | - | (95,362) | |
+----------------------------------------------------+----------+------------+-+
| | ________ | ________ | |
+----------------------------------------------------+----------+------------+-+
| | | | |
+----------------------------------------------------+----------+------------+-+
| Total deferred tax charge | 147,119 | 55,456 | |
+----------------------------------------------------+----------+------------+-+
| | ________ | ________ | |
+----------------------------------------------------+----------+------------+-+
| | | | |
+----------------------------------------------------+----------+------------+-+
| Tax on profit for the period | 123,474 | 53,861 | |
+----------------------------------------------------+----------+------------+-+
| | ________ | ________ | |
+----------------------------------------------------+----------+------------+-+
| | | |
+--------------------------------------------+----------------------+----------+
| Factors affecting charge for year | | |
+--------------------------------------------+----------------------+----------+
| | 2010 | 2009 |
+--------------------------------------------+--------------------+------------+
| | GBP | GBP |
+--------------------------------------------+--------------------+------------+
| | | |
+--------------------------------------------+--------------------+------------+
| Profit before taxation | 465,709 | 460,923 |
+--------------------------------------------+--------------------+------------+
| | ________ | ________ |
+--------------------------------------------+--------------------+------------+
| Profit multiplied by standard rate of | 130,398 | 129,058 |
| corporation tax | | |
| in the UK of 28% (2009: 28%) | | |
+--------------------------------------------+--------------------+------------+
| | | |
+--------------------------------------------+--------------------+------------+
| Effects of: | | |
+--------------------------------------------+--------------------+------------+
| Expenses not deductible | 1,873 | 302 |
+--------------------------------------------+--------------------+------------+
| Adjustment due to change of tax rate | - | (95,362) |
+--------------------------------------------+--------------------+------------+
| Marginal relief | - | (5,156) |
+--------------------------------------------+--------------------+------------+
| Unrelieved tax losses | 6,476 | 40,431 |
+--------------------------------------------+--------------------+------------+
| Other prior year adjustment | (15,273) | (15,412) |
+--------------------------------------------+--------------------+------------+
| | ________ | ________ |
+--------------------------------------------+--------------------+------------+
| | | |
+--------------------------------------------+--------------------+------------+
| Current tax expense for year | 123,474 | 53,861 |
+--------------------------------------------+--------------------+------------+
| | ________ | ________ |
+--------------------------------------------+--------------------+------------+
| | | | | | | |
+--------------------------------------------+-------+----------+-+-+--------+-+
7. Earnings per Ordinary Share
+----------------------------------------------+-------------+-------------+
| | 2010 | 2009 |
+----------------------------------------------+-------------+-------------+
| | GBP | GBP |
+----------------------------------------------+-------------+-------------+
| | | |
+----------------------------------------------+-------------+-------------+
| Profit for the financial year | 342,235 | 407,062 |
+----------------------------------------------+-------------+-------------+
| | __________ | __________ |
+----------------------------------------------+-------------+-------------+
| | 308,340,567 | 306,213,855 |
| Weighted average number of ordinary shares | | |
| in issue during the year | | |
+----------------------------------------------+-------------+-------------+
| Dilutive potential of warrants | - | - |
+----------------------------------------------+-------------+-------------+
| Dilutive potential of share options | - | - |
+----------------------------------------------+-------------+-------------+
| Dilutive potential of convertible loan notes | - | - |
+----------------------------------------------+-------------+-------------+
| | __________ | __________ |
+----------------------------------------------+-------------+-------------+
| | 308,340,567 | 306,213,855 |
| | | |
+----------------------------------------------+-------------+-------------+
| | __________ | __________ |
+----------------------------------------------+-------------+-------------+
| Earnings per share | | |
+----------------------------------------------+-------------+-------------+
| Basic | 0.11p | 0.13p |
+----------------------------------------------+-------------+-------------+
| Diluted | 0.11p | 0.13p |
+----------------------------------------------+-------------+-------------+
| | __________ | __________ |
+----------------------------------------------+-------------+-------------+
The calculation of the basic earnings per ordinary share of 0.11p (2009: 0.13p)
each has been based on the profit for the relevant financial year and on
308,340,567 shares (2009: 306,213,855). This represents the weighted average
number of ordinary shares in issue. The profit for the period for the purpose
of calculating the diluted earnings per share is the same as for the basic
earnings per share calculation.
The profit for the year ended 30 June 2010 and the weighted average number of
ordinary shares for the purposes of calculating the diluted earnings per share
are the same as for the basic earnings per share calculation. This is because
the outstanding options and convertible loan notes were exercisable at a price
above the average share price in the year and would therefore not be dilutive
under the terms of IAS 33.
8. Copies of the Annual Report
Copies of the Annual Report are available from the Company Secretary at the
registered office which is situated at Nelson House, Park Road, Timperley,
Cheshire, WA14 5BZ. The annual report and AGM notices will also be available
for download on the Company's website www.cleardebtgroup.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR KKADQPBKDOCD
1 Year Cleardebt Chart |
1 Month Cleardebt Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
