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| 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 |
From May 2019 to May 2024
TIDMCLEA
RNS Number : 7609X
Cleardebt Group PLC
27 February 2012
ClearDebt Group plc
("ClearDebt" or "the Group")
Unaudited Interim Results for the six months ended 31 December 2011
ClearDebt, the AIM quoted personal debt resolution adviser, is pleased to announce its Interim Results for the six months ended 31 December 2011. The period marked the third year of continued growth in major valuation metrics including EBITDA, revenues and programmes under management.
The Directors expect continued growth to the year-end and for the foreseeable future on the basis of the on-going high levels of personal debt in the UK. The Group is expected to benefit from this as it continues to demonstrate the strong operational success it has enjoyed since its inception, combined with an offering that provides certainty to both creditors and debtors; driving multiple new revenue streams.
Financial Highlights:
0 Revenues increased by 15% to GBP4.55m (2010: GBP3.97m)
0 EBITDA up by 25% to GBP1,443,107 (2010: GBP1,156,849)
0 Profit before tax increased by 99% to GBP451,648 (2010: GBP227,219)
Operational Highlights:
0 Increase in number of IVAs passed, 833 (2010: 731)
0 Now managing 6,111 IVAs and PTDs (2010: 5,156)
0 Abacus, the Group's debt management arm, now has 7,130 (2010: 6,345) debt management plans under management providing income
0 Use of ClearCash, the Group's prepaid MasterCard continues progress in attracting new clients. 9,679 cards in issue (2010: 3,159)
Outlook:
0 Expected continued organic growth augmented by possible future acquisitions of back books
0 Number of IVAs passed continues to increase and the future looks positive
0 Existing pipeline of new business indicates continued growth through to the year-end
0 The current economic environment continues to create increasing demand for personal debt resolution solutions and is likely to continue for the foreseeable future
0 ClearDebt model provides certainty for debtors and creditors. New referral partners will provide an increased level of IVAs and enhanced revenue streams.
David Mond, CEO of ClearDebt commented:
"This was another excellent half-year with good organic growth and all back books absorbed into our operating model which provides a cost effective platform to sustain our profitability. Whilst overall bankruptcy numbers have fallen in the UK over the last quarter, this has led to an increase in debt management plans with increased options for IVAs. The continued stagnation of the UK economy with increased demand for Payday Loans will continue to provide growth for debt resolution solutions that we can offer for many years to come. We are not a one stop shop, but can offer a range of advice and products, depending on the needs of the client, thereby benefiting clients and diversifying our business.
Whilst we are not insensitive to the pressure on our clients, we believe that our commitment to industry leading practices as founder members of the Debt Resolution Forum combined with our innovative and market leading kaizen derived model and products provide security for our clients and also the creditor community."
27 February 2012
For further information, please contact:
Hot Features
Premium
ClearDebt Group plc David Mond, Chief Executive Officer
Tel No: 0161 968 6805
Seymour Pierce Limited Guy Peters, David Banks or Katie
(Broker and Nominated Adviser) Ratner
Tel No: 020 7107 8000
-------------------------------- ------------------------------------
Chairman's Statement
I am pleased to present our Interim results for the 6 months ended 31 December 2011.
Overall the Group saw a large rise in profit before taxation to GBP451,648 (2010: GBP37,274) after reduced amortisation costs of GBP624,330 (2010: GBP814,297) and despite slightly higher interest charges of GBP296,592 (2010: GBP264,402).
The half year also produced another strong rise in earnings before interest, tax, depreciation and amortisation ("EBITDA") that increased by 25% to GBP1,443,107 (2010: GBP1,156,849). In addition the business generated very substantial cash flow at the operations level of GBP1,393,549 (2010:GBP520,480) resulting in an improved cash balance of GBP625,324 at the period end, against a year-end balance of GBP336,636. This balance was after the repayment of GBP500,000 of debt and expenditure of GBP448,410 (2010: GBP384,797) on back books and plant and equipment.
ClearDebt - IVAs
Revenues in the division increased by 34% to GBP3,263,833 (2010: GBP2,415,609) and EBITDA increased by 14% to GBP1,092,643 (2010: GBP957,186). Overall profit before tax for the division rose to GBP350,518 (2010: GBP336,506) after increased depreciation and amortisation charges in the period of GBP539,614 (2010: GBP419,823).
Just prior to the beginning of the period in June 2011 we acquired nearly 1,000 IVAs from Invocas Group plc (Invocas) and I am pleased to report that these have been successfully migrated onto our systems at our Staveley, Chesterfield office during the period. In addition we acquired a further 141 IVA cases from Invocas in the period on a trial, which has now finished.
ClearDebt approved a total of 833 (2010: 761) new IVAs in the period - an increase of 9.5% on the same period last year. The period can be characterised in two halves with the first three months producing a record 489 new cases (2010: 354) followed by a slightly disappointing 344 (2010: 407) in the second three month period. Part of the reduction was due to the loss of a lead source, who we elected to cease trading with as a result of compliance issues, together with a slowing in the marketplace generally, with 2011 as a whole seeing an 11% drop in personal insolvencies - although IVAs themselves only declined by 3%.
We continue to expand our base of active referrers of new business and look for new referral sources as we continue to move away from internet PPC advertising where costs continue to rise making the source less attractive than previously. As at 31 December 2011 ClearDebt had 6,111 IVA and protected trust deed clients (2010: 5,156).
Abacus - DMPs
The Abacus debt management division returned to profit in the first half, achieving a profit before tax of GBP101,130 against a loss in 2010 of GBP299,232. Despite lower revenues in the half year of GBP1,287,481 (2010: GBP1,555,125) overall EBITDA increased by 84% to GBP350,464 (2010: GBP199,663).
This was achieved as a result of savings made in December 2010 following the closure and transfer of the Staveley, Chesterfield debt management operation to Timperley and a large reduction in marketing expenditure, more than offsetting the natural wastage of clients. Abacus as at 31 December 2011 is managing a total of 7,130DMPs (2010: 6,345) generating income.
In October 2011 we successfully introduced new dialling software which has dramatically improved the efficiency of our call centre and we have since been increasing staff numbers quite significantly. This, together with the acquisition of a number of new sources of leads (previously viewed as uneconomic for the then scale of our call centre) has seen our debt management client numbers net of natural attrition rise (excluding acquired books) in January 2012 for the first time in 12 months.
Additional lead sources have come on stream in January and a number of others are expected in the next few months which give us confidence that the number of debt management clients will continue to grow - with a correspondingly beneficial effect on the number of new IVA clients that should result as well.
ClearCash card
Progress continues to be made with our Pre-Paid MasterCard, ClearCash. As at 31 December 2011 there were 9,679 cards in issue (2010: 3,159).
We see the ClearCash card as an integral service offering to our clients especially for those who have difficulty accessing traditional bank accounts due to their poor credit status. We continue to look for improvements in functionality to further enhance its benefits and make it more attractive to a wider audience.
Outlook
I continue to be optimistic about the Group's prospects for the remainder of the financial year to 30 June 2012 with new lead sources expected to benefit the number of new DMP clients being acquired in particular, with a corresponding effect on IVA clients in due course.
Cash generation remains strong and we continue to look for debt management back books to purchase which produce a quick and profitable return on investment. We are actively pursuing new sources of finance for the purchase of back books and we are starting to preserve cash flow for the repayment of the secured convertible loan due in April 2013. Should suitable back book opportunities not arise we will look to start repayment of the secured convertible loan early to reduce borrowing costs.
Gerald Carey FCIB
27 February 2012
ClearDebt Group plc 6 Months 6 Months Year
Consolidated Income Statement ended ended ended
31 December 2011 31 December 2010 30 June 2011
Unaudited Unaudited Audited
Note GBP GBP GBP
Revenue
- ongoing 4,537,575 3,915,692 7,582,367
- acquisitions 13,739 55,042 193,995
__________ __________ __________
4 4,551,314 3,970,734 7,776,362
Cost of sales (2,157,930) (1,928,818) (3,812,403)
__________ __________ __________
Gross profit 2,393,384 2,041,916 3,963,959
Administrative expenses (910,999) (779,977) (1,678,623)
Administrative expenses -Separately
disclosable items - (74,278) -
Share based payment (39,278) (30,812) (62,925)
__________ __________ __________
Profit before interest, tax,
depreciation and amortisation 1,443,107 1,156,849 2,222,411
Depreciation (71,427) (64,009) (132,437)
Amortisation (624,330) (814,297) (1,388,809)
Separately disclosable items
Gain on bargain purchase - 21,338 54,985
_________ __________ __________
Profit from operations 747,350 299,881 756,150
Finance costs (296,592) (264,402) (532,404)
Finance income 890 1,795 3,473
_________ __________ __________
Profit before taxation 451,648 37,274 227,219
Taxation 6 (117,429) (6,514) (156,183)
_________ __________ __________
Profit after taxation for period 334,219 30,760 71,036
_________ __________ __________
Earnings per ordinary share -
basic (pence) 5 0.11p 0.01p 0.02p
Earnings per ordinary share -
diluted (pence) 5 0.11p 0.01p 0.02p
The results for the period are derived from continuing activities.
ClearDebt Group plc 6 Months 6 Months Year
Consolidated Statement of ended ended ended
Comprehensive Income 31 December 2011 31 December 2010 30 June 2011
Unaudited Unaudited Audited
GBP GBP GBP
Profit for the period 334,219 30,760 71,036
Other comprehensive income net of tax - - -
_________ __________ __________
Total comprehensive profit for the period 334,219 30,760
71,036
_________ __________ __________
Attributable to:
Owners of the parent 334,219 30,760 71,036
_________ __________ __________
ClearDebt Group plc As at As at As at
Consolidated Statement of Financial 31 December 31 December 30 June
Position 2011 2010 2011
Unaudited Unaudited Audited
GBP GBP GBP
Assets
Non-current assets
Intangible assets 6,140,598 6,284,102 6,476,691
Property, plant and equipment 341,742 245,063 252,998
Deferred taxation 78,188 158,706 78,188
------------- ------------------ ------------
6,560,528 6,687,871 6,807,877
Current assets
Trade receivables 2,026,641 1,120,706 2,181,959
Corporation tax receivables - 8,372 -
Other receivables 294,616 248,750 -
Cash and cash equivalents 625,324 517,302 336,636
------------- ------------------ ------------
2,946,581 1,895,130 2,518,595
Total assets 9,507,109 8,583,001 9,326,472
============= ================== ============
Equity and liabilities
Issued capital 6,166,812 6,166,812 6,166,812
Share premium account 279,948 279,948 279,948
Share based compensation 242,590 171,199 203,312
Other reserves 96,495 96,495 96,495
Retained losses (1,261,766) (1,636,261) (1,595,985)
Total equity 5,524,079 5,078,193 5,150,582
Current liabilities
Trade and other payables 749,660 549,215 698,255
Corporation tax payable 210,091 - 92,662
------------- ------------------ ------------
959,751 549,215 790,917
Non-current liabilities
Financial liabilities 2,956,615 2,877,057 3,318,309
Deferred taxation 66,664 78,536 66,664
------------- ------------------ ------------
Total liabilities 3,983,030 3,504,808 4,175,890
------------- ------------------ ------------
Total equity and liabilities 9,507,109 8,583,001 9,326,472
============= ================== ============
6 Months 6 Months Year
ClearDebt Group plc ended ended ended
Consolidated Statement of 31 December 31 December 30 June
Cashflows 2011 2010 2011
Unaudited Unaudited Audited
GBP GBP GBP
Cash flow from continuing operating
activities
Profit before taxation 451,648 37,274 227,219
Depreciation of property, plant
and equipment 71,427 64,009 132,437
Amortisation of intangible
assets 624,330 814,297 1,388,809
Gain on bargain purchase - (21,338) (54,985)
Share based payment 39,278 30,812 62,925
Increase in trade and other
receivables (139,298) (216,230) (928,733)
Finance costs 296,592 264,402 532,404
Finance income (890) (1,795) (3,473)
(Increase)/decrease in trade and
other payables 50,462 (450,951) (310,896)
Cash generated by operations 1,393,549 520,480 1,045,707
Corporation tax refund - - 8,794
------------------- ------------- ------------
Net cash generated by operating
activities 1,393,549 520,480 1,054,501
Investing activities
Acquisition of business and assets - (278,364) (1,088,783)
Acquisition of intangibles (288,238) (25,351) (37,170)
Acquisition of property, plant and
equipment (160,172) (81,082) (157,443)
Finance income 890 1,795 3,473
Sale of property, plant and equipment - - -
Net cash used in investing
activities (447,520) (383,002) (1,279,923)
Financing activities
Proceeds from new loans issued - - 315,000
Repayment of loans (500,000) - -
Interest on loans (157,341) (161,680) (294,446)
Cash generated by/(used) in financing
activities (657,341) (161,680) 20,554
------------------- ------------- ------------
Decrease in cash and cash equivalents 288,688 (24,202) (204,868)
Opening cash and cash equivalents 336,636 541,504 541,504
------------------- ------------- ------------
Closing cash and cash equivalents 625,324 517,302 336,636
=================== ============= ============
ClearDebt Group Share Total
plc Issued premium Share based Other Retained
Consolidated Statement Capital account compensation Reserves losses
of Changes in Equity
GBP GBP GBP GBP GBP GBP
Balance at 1 Jul
2010 6,166,812 279,948 140,387 96,495 (1,667,021) 5,016,621
Share based compensation - - 30,812 - - 30,812
Profit for the period - - - - 30,760 30,760
Balance at 31 Dec
2010 6,166,812 279,948 171,199 96,495 (1,636,261) 5,078,193
Share based compensation - - 32,113 - - 32,113
Profit for the period - - - - 40,276 40,276
As at 1 Jul 2011 6,166,812 279,948 203,312 96,495 (1,595,985) 5,150,582
Share based compensation - - 39,278 - - 39,278
Profit for the period - - - - 334,219 334,219
Balance at 31 Dec
2011 6,166,812 279,948 242,590 96,495 (1,261,766) 5,524,079
========== ======== ============= ========= ============ ==========
Notes to the Interim Financial Statements
1. General information
The Group's interim financial information consolidates the results of ClearDebt Group plc and its subsidiary companies made up to 31 December 2011. The Group's functional currency is the GBP Sterling.
ClearDebt Group plc is a limited liability company incorporated and domiciled in England and Wales whose shares have been admitted to trading on AIM, a market operated by the London Stock Exchange.
2. Accounting policies and basis of preparation
This interim financial information does not constitute statutory accounts as defined by section 434 of the Companies Act 2006. It does not therefore include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 30 June 2011, which have been prepared in accordance with IFRSs as adopted by the European Union. The Group's statutory accounts for the year ended 30 June 2011 have been delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.
The Group has not applied IAS 34, Interim Financial Reporting, which is not mandatory for UK Groups, in the preparation of these interim financial statements.
The preparation of the interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Estimates and judgements are continually evaluated and are based on historical experience and other factors, such as expectations of future events and are believed to be reasonable under the circumstances. Actual results may differ from these estimates. In preparing these interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the audited consolidated financial statements for the year ended 30 June 2011.
The interim financial statements have been prepared using the same accounting policies and estimation techniques as will be adopted in the Group financial statements for the year ending 30 June 2012. The Group financial statements for the year ended 30 June 2011 were prepared under International Financial Reporting Standards as adopted by the European Union.
The intangible insolvency assets are being amortised over periods ranging between three and four years. The debt management assets are being amortised over periods ranging between 12 and 18 months. These periods have been selected by the directors to approximate as closely as possible to the period over which it is estimated that the vast majority of income will be received.
3. Going Concern
The Group manages its cash requirements through its existing cash resources and operating cash flows. The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate within the level of its current resources. Consequently, after making enquires, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the interim financial statements.
4. Segmental Information
The Group's total income, result before taxation and net assets were all derived from its principal activities being the provision of insolvency services (IVAs and PTDs) and DMPs to individuals experiencing personal debt problems. All the Group's activities were undertaken wholly in the United Kingdom.
Debt
6 months to 31 December Insolvency Management Total
2011
GBP GBP GBP
Revenue
* ongoing 3,250,094 1,287,481 4,537,575
* acquisitions 13,739 - 13,739
3,263,833 1,287,481 4,551,314
Cost of sales (1,527,079) (630,851) (2,157,930)
Gross profit 1,736,754 656,630 2,393,384
Administrative expenses (622,897) (288,102) (910,999)
Share based payment (21,214) (18,064) (39,278)
Profit before interest,tax,
depreciation and amortisation 1,092,643 350,464 1,443,107
Depreciation (47,397) (24,030) (71,427)
Amortisation (492,217) (132,113) (624,330)
Profit from operations 553,029 194,321 747,350
Finance costs (203,401) (93,191) (296,592)
Finance income 890 - 890
Profit before taxation 350,518 101,130 451,648
Taxation (83,095) (34,334) (117,429)
Profit after taxation
for period 267,423 66,796 334,219
4. Segmental Information (continued)
Debt
6 months to 31 December Insolvency Management Total
2010
GBP GBP GBP
Revenue
* ongoing 2,415,609 1,500,083 3,915,692
* acquisitions - 55,042 55,042
2,415,609 1,555,125 3,970,734
Cost of sales (921,290) (1,007,528) (1,928,818)
Gross profit 1,494,319 547,597 2,041,916
Administrative expenses (481,154) (298,823) (779,977)
Share based compensation (15,041) (15,771) (30,812)
Separately disclosable
items (40,938) (33,340) (74,278)
Profit before interest,
tax,
depreciation and amortisation 957,186 199,663 1,156,849
Depreciation (26,272) (37,737) (64,009)
Amortisation (393,551) (420,746) (814,297)
Gain on bargain assets - 21,338 21,338
Profit from operations 537,363 (237,482) 299,881
Finance costs (202,652) (61,750) (264,402)
Finance income 1,795 - 1,795
Profit before taxation 336,506 (299,232) 37,274
Taxation (83,505) 76,991 (6,514)
Profit/(loss) after taxation
for period 253,001 (222,241) 30,760
4. Segmental Information (continued)
Debt
Year ended 30 June 2011 Insolvency Management Total
GBP GBP GBP
Revenue
* Ongoing 4,843,540 2,738,827 7,582,367
* Acquisition - 193,995 193,995
4,843,540 2,932,822 7,776,362
Cost of sales (2,355,997) (1,456,406) (3,812,403)
Gross profit 2,487,543 1,476,416 3,963,959
Administrative expenses (1,072,653) (605,970) (1,678,623)
Share based payment (30,380) (32,545) (62,925)
Profit before interest,
tax,
depreciation and amortisation 1,384,510 837,901 2,222,411
Depreciation (59,674) (72,763) (132,437)
Amortisation (892,425) (496,384) (1,388,809)
Gain on bargain assets 33,648 21,337 54,985
Profit from operations 466,059 290,091 756,150
Finance costs (374,368) (158,036) (532,404)
Finance income 3,473 - 3,473
Profit before taxation 95,164 132,055 227,219
Taxation (121,849) (34,334) (156,183)
(Loss)/profit after taxation
for period (26,685) 97,721 71,036
4. Segmental Information (continued)
As at As at As at
31 Dec 31 Dec 30 Jun
2011 2010 2011
GBP GBP GBP
Capital expenditure to acquire
intangible assets
Insolvency 288,238 25,351 799,806
Debt management - 278,364 300,647
288,238 303,715 1,100,453
Capital expenditure to acquire
property, plant and equipment
Insolvency 146,711 77,387 152,063
Debt management 13,461 3,695 5,380
160,172 81,082 157,443
Depreciation of property, plant
and equipment
Insolvency 47,397 26,271 59,674
Debt management 24,030 37,738 72,763
71,427 64,009 132,437
Amortisation of intangible assets
Insolvency 492,217 393,551 892,425
Debt management 132,113 420,746 496,384
624,330 814,297 1,388,809
The Group's total income, profit before taxation and net assets were all derived from its principal activities being the provision of appropriate debt resolution solutions and other appropriate financial advice to individuals experiencing personal debt problems. All the Group's activities were undertaken wholly in the United Kingdom.
5. Earnings per ordinary share
6 Months 6 Months Year
ended ended ended
31 December 31 December 30 June
2011 2010 2011
Unaudited Unaudited Audited
GBP GBP GBP
Profit attributable to
equity holders of parent 334,219 30,760 71,036
Weighted average number
of shares in issue -
basic 308,340,567 308,340,567 308,340,567
Weighted average number
of shares in issue -
diluted 308,340,567 308,340,567 308,340,567
Earnings per share -
basic (pence) 0.11 0.01 0.02
Earnings per share -
diluted (pence) 0.11 0.01 0.02
The weighted average number of ordinary shares for calculating the diluted earnings per share above is identical to those for the basic earnings per share. This is because the outstanding share warrants, share options and potential shares issued under the convertible loan would not be dilutive under the terms of International Accounting Standard ("IAS") 33.
6. Taxation
6 Months ended 6 Months ended Year Ended
31 December 31 December 30 June
2011 2010 2011
GBP GBP GBP
Analysis of current year
Current tax
UK corporation tax due 117,429 - 92,662
Over provision from prior years - - (422)
Deferred tax
Temporary differences, origination
and reversal - 6,514 63,943
Tax on profit for the period 117,429 6,514 156,183
7. The Board of Directors approved the interim report on 27 February 2012. A copy of this Interim Statement is being sent to shareholders and copies are available for download by visiting our website at www.cleardebtgroup.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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