Invocas Share Discussion Threads

[affc21] 19/3/2006 18:36

jonothedog,

Thanks for starting this BB thread for Invocas,will add to my favourates list.

Just watching from the sidelines for now.

[jonothedog] 19/3/2006 13:45

17 March 2006

INVOCAS GROUP PLC

("Invocas" or the "Company")



TRADING BEGINS TODAY ON AIM
Admission of the Company's Ordinary Shares to the Alternative Investment Market of the London Stock Exchange
Placing of 8,566,585 ordinary shares of 0.25p each at a price of 111 pence per share ("the Placing") raising £9.5 million

Market capitalisation of £31.7 million


The shares of Invocas Group plc (AIM: INVO), the leading provider of personal and corporate debt solutions in Scotland, will begin trading today on AIM. The placing, at 111 pence per share, successfully raised £9.5 million. Charles Stanley Securities is Nominated Adviser and Broker to the Company.



Highlights:

· Invocas is a new company which with effect from Admission will have acquired the business and assets of Haines Watts Business Recovery and Insolvency Scotland ("HWBRIS") pursuant to the Acquisition Agreement.

· HWBRIS has been profitable for the past seven financial years. The Business manages a mixed portfolio of both personal and corporate insolvency cases and is a major provider of Protected Trust Deeds in Scotland. Approximately 80 per cent. of turnover of the Business for the 6 months ended 30 September 2005 was derived from Protected Trust Deed work, with the remaining 20 per cent. made up of administrations, receiverships, liquidations, sequestrations (the Scottish term for bankruptcy) and advisory work.

· The total number of new Protected Trust Deed appointments taken by HWBRIS's license holders in the year to 31 December 2005 was 1,069, this compares to 941 in the year to 31 December 2004 and represents an increase of 13.6 per cent.

· The total number of Protected Trust Deeds in Scotland for the year ended 31 December 2005 reached 6,864. This represents an increase of 14 per cent. over 2004. In the same period, total sequestrations (ie bankruptcies) increased from 3,297 to 5,026, an increase of 52 per cent.

· More than 60 per cent. of Scots used credit to pay for Christmas 2005. During the year 2004-2005, Scottish CABs dealt with more than 50,000 cases of people struggling with consumer debt, an increase of 11 per cent. on the previous year. Those seeking advice had an average debt of £13,380. In addition, 27 per cent. of Scottish adults have a credit card debt, as opposed to the UK average of 23 per cent.

· The Company currently employs 6 qualified Insolvency Practitioners, 3 of whom hold licenses and are currently taking formal insolvency appointments in their own names.

· The Company is raising £9.5m pursuant to the Placing with UK institutional and retail investors. £2.1 of these proceeds will be utilised to invest in the Company's strategy including developing a new helpline, marketing, funding possible acquisitions, working capital requirements and attracting key staff. £6.5m will be utilised to pay monies owed by the Company to the Directors in connection with the Acquisition. At the time of Admission, the Company will have a free float of approximately 30 per cent.



John Hall, Chief Executive of Invocas Group plc, commented:

"We are delighted that our IPO has been so enthusiastically received by new investors and that we were successful in raising more than we originally set out to do. As a result we have now got a terrific share register with great institutional names who supported our placing.



The Company is already Scotland's leading provider of Protected Trust Deeds with a strong, 7-year track record and an industry-leading management team. We intend to become the first choice provider of personal debt solutions whilst continuing to build a high quality corporate insolvency business for the growing and fragmented Scottish market."


For further information: