Debt Free Direct Share Discussion Threads

[hamidahamida] 07/8/2007 22:29

SIGN OF THINGS TO COME IN THIS SECTOR

110million for Think Money
Exclusive Kevin Feddy/manchester evening news
7/ 8/2007


THINK Money Group, one of the country's leading debt management companies, has changed hands in a hush-hush £110m deal.

Venture capital outfit Alchemy has bought the Salford Quays business from another private equity firm, ECI Ventures, which acquired a 57 per cent stake when it backed a management buyout in 2002.

All parties have signed confidentiality agreements but a spokesman for Alchemy, which is headed by private equity grandee Jon Moulton, confirmed the buyout.

ECI had considered floating the business last year as its means of exit but decided against it amid turbulence in the debt advice sector.

Leading banks and other creditors became increasingly critical of individual voluntary arrangements because they were forced to write off large chunks of consumer debts in return for guaranteed monthly payments. Their stance prompted a decline in the number of IVAs being completed and sparked a series of profit warnings by listed debt advice companies.


It operates several subsidiaries, including Gregory Pennington, Freeman Jones, Wilson Andrews, Friendly Mortgages and Loans and Think Banking.

Range

Founded in 1993 by entrepreneur Nigel Warr, it has helped more than 100,000 people in financial difficulty. In 2002 it employed 250 staff and its core product was debt management.

Since then, the range has grown to include IVAs, loan brokering and mortgages and its workforce to more than 500.

Think Money is led by managing director Stephen Stylianou, 38.

According to the latest set of accounts filed at Companies House, the group turned over more than £27m in the year to January 31, 2006, and made pre-tax profits of more than £5.2m.

One source said: "It's a good business which enjoys excellent relationships with the banks and is trusted by its customers. Alchemy wants to grow it over the next few years and will then probably float it on the stock market."

Mr Stylianou is on first name terms with all staff and gives them a card and champagne on their birthday.

The Manchester office of investment bank Rothschild advised ECI on the sale.

[sat69] 30/7/2007 20:20

Closed up 4% today at 258p. Is that you Simon C, closing your short positions knowing that the buyback of 4.5 million shares could start any day now?!

[imprima2] 25/7/2007 13:37

numis

Debt Free Direct
DFD.L
Current price 258p
Target price 285p
Recommendation ADD (last different recommendation HOLD on 26 June)

We set a revised target price of 285p and have an ADD recommendation on the stock.

[sat69] 24/7/2007 22:44

Two very big cross-trades, totalling 2 million shares gone through at 260p in the final 30 minutes of trading. We may be in for a good day tomorrow.

[sat69] 21/7/2007 11:16

The slow rise continues. I'm certain that anyone holding short positions are now closing, in fear of the massive 4.5 mill shares that the company are about to start buying back. This buyback programme may even commence next week.

If we can close above 270p, there is no resistance to the next level of support at 300p.

sat

[sat69] 19/7/2007 20:46

g1

Near the top left hand side of this screen, you will see a 'search' button. If you click on that and then in the 'created by' box you type in 'sat69' you will see all the threads created by me. One of them is 'TIPS FOR U'

sat

[twentyoneeleven] 19/7/2007 20:33

g1ll1s, try here ...

[sat69] 18/7/2007 19:29

Yeah JB - I saw the spectacular rise on ACG today, but I'm already heavily invested in DFD and DEBT, so although I would have liked to buy some ACG, it's safer not to put too much into the same sector. I missed out!

[jailbird] 18/7/2007 19:25

thaks sat..made a few quid on ACG today..also one to get into sat.

[sat69] 18/7/2007 16:43

As predicted in my post #157. Up 5% today at 257p. Now lets wait for the commencement of the share buybacks. Closed your short yet EK?!!!!!!!!

[sat69] 17/7/2007 16:37

JB...Info as requested

sat

RNS Number:0064Z
Debt Free Direct Group PLC
26 June 2007

DEBT FREE DIRECT GROUP PLC
("Debt Free Direct", the "Company" or the "Group")

Acquisition of Clear Start UK Limited ("Clear Start") (the "Acquisition")

Highlights:

Acquisition

- Initial consideration satisfied by the issue of 4,159,671 new ordinary
shares

- Initial consideration values Clear Start at approximately #10.9 million

- Deferred consideration of up to a further 2,229,482 new ordinary shares
dependent on share price performance of Debt Free Direct over next two
years

- Acquisition is expected to be earnings enhancing

- Clear Start vendors (the "Vendors") to nominate two board members


Rationale for enlarged group

- Clear Start is a rapidly-growing consumer debt advice and solutions company
that brings:

o A strong management team with a background in financial
services;
o Top ten IVA volumes through proprietary online and referral
channels;
o Industry-recognised creditor relationships and innovative
creditor services.

- The directors of the Group (the "Directors") believe that the enlarged
group will be clear market leaders in the IVA space, and will move quickly
in a consolidating market to broaden the range of products and services it
provides.


Share buyback

- Proposed share buyback of up to 4,500,000 shares

- Proposal is to buy back shares up to the number of shares issued as
consideration in order to maximise the accretive earnings impact of the
Acquisition, whilst ensuring that the Vendors' interests are aligned with
other Debt Free Direct shareholders

- Share buyback to be funded by proposed new debt facility of approximately
#16 million

- Shareholder approval will be required to authorise the Company to purchase
its own shares and to cancel the Company's share premium account in order
to effect the share buyback programme

Extraordinary General Meeting

- An Extraordinary General Meeting ("EGM") of the Company will be convened
for 18 July 2007, to consider the resolutions necessary to effect the
proposed share buyback

[jailbird] 17/7/2007 07:29

sat,

where is the info on this buyback..

[sat69] 13/7/2007 16:34

Not a time to be shorting this stock. I expect a continuation of the slow rise back upwards. Expect a boost on Wed 18 July, after shareholders approve the buyback of 4.5 million shares for cancellation.....and then a further boost when the buyback programme begins.

sat

[alexx] 13/7/2007 10:06

I've just increased my short, been short for about 10 weeks now

The reasons have all been stated before

[sat69] 12/7/2007 16:37

Nice rise today - for a change. Up 5% at 247p. That upward trend looks nice on the graph. So may it continue! :-)

...err and as for Simon's post 152...Glad to see that the market does not agree with him. Close yer short tomorrow Simon....or suffer!

sat

[w r] 11/7/2007 13:50

chart to m is showing a bottom approaching... maybe here.. maybe at 200p

[mrnitelite] 11/7/2007 13:49

SC, totally agree with you on DFD & DEBT.

On another note what's your opinion on this posted on another board to me today?

I have heard that you are the master 'shorter' & would appreciate your comment. Cheers.



maestro4 - 11 Jul'07 - 13:30 - 84231 of 84234


mrnitelite

vog is already trading at stupendous levels, i think you will need a big wallet to reduce the price under 40p. rofl

[simon cawkwell] 11/7/2007 13:12

Gentlemen,

Why should DFD hold up in the light of DEBT's latest decline?

Simon Cawkwell

[bulltradept] 10/7/2007 08:23

Am looking at DFD,

Expect to buy at some point, what with consumer debts & interest rates rising,
but there does seem to be uncertainty with this stock at the mo.

Will hold off, for now.

Would welcome any good points / bad points or any reasoned analysis.

Cheers Bull.

[johndee] 29/6/2007 16:45

seems all IVA companies are dying........good.....they have no use in the debt world.........better to have an informal agreement with the creditors...the nasty letters they send are no big deal.

[hamidahamida] 29/6/2007 12:42

dfd will profits warn i wll stay away from this for now

[richardbonny] 29/6/2007 10:46

Article in Shares magazine yesterday headed 'Debt advice sector facing almost certain collapse'. Fundamentals look sound? They don't think so.

'Analysts reckon the IVA sector is fundamentally unsound. The costs of winning new cases and obtaining bank agreements have rocketed, meaning that most companies can no longer make a profit on new cases.'