Trading Update and Related Party Transaction (7460I)

TIDMCLEA

RNS Number : 7460I

Cleardebt Group PLC

20 June 2011

ClearDebt Group Plc ("ClearDebt" or "the Company")

ClearDebt is pleased to announce a trading update and that it has today acquired certain assets of Invocas Group plc.

-- ClearDebt anticipates that its year end figures will be ahead of market expectations

-- Number of IVAs approved in the current financial year is expected to exceed the 2009/10 figures by 100%

-- ClearDebt has acquired a book of approximately 1,000 IVAs from Invocas Group plc for an undisclosed sum

The Board of ClearDebt sees the 2010/11 financial year as one of good solid progress. The acquisition of the book of IVAs from Invocas gives the Company the opportunity to expand its operations in the growing IVA sector. The acquisition is being funded, in part, by a Loan (the "Loan") from the Company's CEO, David Mond, of GBP625,000 on the same terms under which Mr Mond has previously made loans to the Company. The Loan bears interest at a rate of 10.5% per annum and is repayable on demand. As the Loan is being made to the Company by a director, it is classified as a related party transaction under the AIM Rules for Companies. As such, the independent directors are required to give an opinion, after consultation with the Company's Nominated Adviser, that the terms of the Loan are fair and reasonable so far as all shareholders are concerned. Having consulted with Seymour Pierce Limited, the independent directors of the Company are satisfied that the terms of the Loan being made to the Company by David Mond are fair and reasonable so far as all shareholders are concerned.

ClearDebt welcomes last Tuesday's Office of Fair Trading's publication on revised guidance for the debt management industry and applauds the attempts to impose stricter rules within the debt resolution industry which ClearDebt has been championing for years. The consultation document sets out standards that the debt management industry must adhere to and to which ClearDebt embraced several years ago.

The Board intends to pursue a number of further opportunities to acquire further back books or businesses within the industry.

Enquiries:

ClearDebt Group plc David Mond, Chief Executive Officer

Tel No: 0161 968 6805

Seymour Pierce Limited John Cowie/Guy Peters (Corporate

(Broker and Nominated Adviser) Finance)

David Banks/Katie Ratner (Corporate

Broking)

Tel No: 020 7107 8000

This information is provided by RNS

The company news service from the London Stock Exchange

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