Debts.Co.Uk Share Discussion Threads

[guidfarr] 23/11/2007 14:43

i wonder how it feels holding these losing day after day - I lost 10% [around GBP4500] on a Ladbrokes trade after they posted the results and it really sucked!

[imprima2] 19/11/2007 14:33

-20% today

[naeclue] 16/11/2007 13:13

It is drifting on lowered volumes right now, probably no news until January when we may get an update.

I'll write up a review, I'm looking at all my holdings right now. I do think Dets is worth more than this price. Their IVA run rate has recovered some, (175 per month at results), the cash on hand, plus monies owed (their success rate for IVA's is >95%) pretty much covers the entire market cap for me. Their operation in Scotland is over and above that.

I bought too early in hindsight, but will watch shares continue to drift and possibly buy more when I've looked more closely.

I think Dets is a good company in an out of favour sector; good performance from the company, plus improved visibility will help them, (I believe they will achieve both, but you pays your money, you takes your choice). It may take a little time.

[imprima2] 16/11/2007 12:58

might have another look in at 16p

[aatw5295] 16/11/2007 10:46

Has everyone from this site retired ? or just hung themselves from the state of the share price ?

[buetowa] 03/11/2007 21:25

From The Times ... 'Cracks appearing' as bankruptcies rise

"The number of consumers becoming insolvent is expected to soar next year after figures published yesterday showed rising bankruptcies and a fall in the use of arrangements to avoid going bust."

[buetowa] 02/11/2007 11:04

Number going bust in slight fall...

"There were 10,698 IVAs in the second quarter of 2007, compared to 12,597 during the previous three months. The number of IVAs is down year-on-year by 0.7%."

[dasv] 15/10/2007 18:30

what's all this then? can only assume today's 17.95% must be on takeover rumours or what else?

[dasv] 11/10/2007 15:02

my guess its takeover approaches on accuma (up 37% today)

Accuma group says receives a number of approaches for co, talks at early stage
11-OCT-2007 14:45

LONDON (Thomson Financial) - Accuma Group PLC said it has received a number of approaches for the company and discussions are at an early stage, adding that this may or may not lead to an offer.

The company made the statement following its recent share price movement.

At 2.22 pm, Accuma shares surged up 37.22 pct at 30.60 pence.

[vapourtrail] 11/10/2007 13:40

Not that i'm complaining (because I'm out of pocket big time on this share) but why is it increasing? Minimal volume, no earth shattering R.N.S., results as expected, somethings in the wings.

[buetowa] 09/10/2007 17:36

DiogenesJ -yes you are right. That's what I get for trying to do to many things at the same time. I will edit my statement to accurately reflect it.
thanks - buetowa

[diogenesj] 09/10/2007 17:15

I am not sure that your calculation is correct, B. £2.24m pre-tax profit leaves about £1.57m after 30% tax. Divide £1.57m by the number of shares in issue, 21.09m, and you get earnings per share of 7.4p. Divide the current price of 53.5p by eps of 7.4p, and you get a price to earnings ratio of 7.16x.

That may look cheapish, but some might think it was high enough in view of the obvious problems here imo.

£2.24m is quite a dramatic drop (34%) from last year's ptp (if that's what you were comparing it with), which was £3.4m and not £2.58m.

[buetowa] 09/10/2007 15:40

Seymour Pierce reduced their pretax earnings estimate for DETS for the year to July 2008 to 2.24 mln stg from a previous forecast of 5.7 mln. This figure seems particularly high given the overall market conditions for IVA's.

However, you could look at it from the current earning perspective. £2.24m is down from this year's figure of £3.44m and but still equates to an EPS of around 7.4p against the reported 13p today for the year 07. Given today's share price of 53.5p that a PE of 7.2. EDITED

If they collect outstanding receivables then it becomes an even more attractive proposition.

The questions that I have asked myself whether to remain invested were:
1. Do they offer a necessary service (ie acting as an intermidiary between borrower and lender) and therefore is there a long term future?
2. While the IVA industry may change (revenue model) are they in a position to rapidly adapt?
3. Are they actively looking to reduce costs?
4. Can they recover outstanding receivables or borrow against?

I am satisfied with what I have currently found but still the risks are high but as a recovery oppportunity the risk / reward looks on balance ok. I to expect a slight further drop in price where I plan to buy again.

[dasv] 09/10/2007 14:25

However - you might say most of this bad news is priced in by now. Though I suspect the share price will get worse before it gets better.

[diogenesj] 09/10/2007 14:17

Future uncertain, PW, and house broker has cut forecast for next year by more than 50%. Meanwhile, cash flow situation looks serious.

[powwow] 09/10/2007 13:23

hi why the hell is this going down, when the reported profits. Not in just looking and thinking about it.

Has the fall not been overdone?

[buetowa] 09/10/2007 12:06

Clearly got my timing wrong on this one but having reviewed today's results I will continue to hold for the medium term.

My two main areas of concern and will monitor are:

1. Cashflow

The increase in receivables from £3.2m to £10.7m. I would have liked the management to be more specific on their recognition of this issue and what they plan to do to resolve it. Ironic, given this is one of their core services that they offer to customers.

2. Company statements

The trading update for the year ended July 31st 2007 announced that the Board of Debts.co.uk, the provider of debt management solutions to over indebted individuals, are pleased to announce that trading for the year ended 31 July 2007 has been in line with both the Board's and analysts' expectations.

Yet, Seymour Pierce was expecting pretax of 3.8 mln stg - the company produced 3.4 mln - the broker takes the view that, given the extremely tough market conditions persisting in the IVA industry and the profit warnings from competitors, this is a very good set of results.

I wonder if the new FD made them account for items that brought down the figure so it missed by 10%.

[apeksa] 09/10/2007 10:16

That the TFN report's tone indicates that this morning's price movement is unwarrented given the Final Results, and is more a factor of sentiment and pressure on investors, and even that rightfully the 7.5p belongs on the s.p.

[masurenguy] 09/10/2007 10:01

What on earth is the point that you are trying to make ?

[apeksa] 09/10/2007 09:56

Interesting choice of words in the TFN report posted by CURRYPASTY above:

'Slightly lower-than-expected full-year numbers robbed Debts.co.uk of 7-1/2 pence'.

Part of entry for 'robbery' in Wikipedia:

'Robbery is the crime of seizing property through violence or intimidation. More precisely, at common law, robbery was defined as taking the property of another, with the intent to permanently deprive the person of that property, by means of force or fear'.

[7kiwi] 09/10/2007 09:32

Yes, but you have to wonder about the cash position only c.£1.2m and whether that £10.7m of receivables is really collectable. An increase of £6.7m receivables with turnover only at £11.5m looks somewhat iffy.

[currypasty] 09/10/2007 09:09

mcap now only £10 mil

IMHO, thats silly for a company that has just made £3.8 mil, and next year estimate of £2.2 mil

[currypasty] 09/10/2007 09:07

LONDON (Thomson Financial) - Slightly lower-than-expected full-year numbers
robbed Debts.co.uk of 7-1/2 pence, down to 53-1/2. While Seymour Pierce was
expecting pretax of 3.8 mln stg - the company produced 3.4 mln - the broker
takes the view that, given the extremely tough market conditions persisting in
the IVA industry and the profit warnings from competitors, this is a very good
set of results.
However, the changes to fee structures are such that there will be a
substantial negative impact on the broker's expectations in terms of revenues -
which it now expects to remain flat in 2008 - and earnings.
It is slashing its pretax earnings estimate for the year to July 2008 to
2.24 mln stg from a previous forecast of 5.7 mln.
Nevertheless, Seymour expects growth in the industry to resume next year as
creditor resistance diminishes due to the agreed procedures and fees. For this
reason, it is retaining its 'buy' recommendation

[madasafish] 09/10/2007 08:07

DETS receivables and cash flow!:-((

[130407] 09/10/2007 07:51

results are good but the market does not like anything to do with debtors or IVA's

pre market down 3p.