Board change&pre close update

RNS Number:4860R
Invocas Group plc
03 April 2008

                               INVOCAS GROUP PLC

                   ("Invocas", "the Company" or "the Group")
                   DIRECTORATE CHANGE AND PRE CLOSE STATEMENT


Invocas, one of the UK's leading providers of personal and corporate debt
solutions, provides the following announcement regarding board changes and an
update on trading as the end of the financial year to 31 March 2008 is reached.

Directorate Change

Invocas announces that John Hall is stepping down as Chief Executive Officer
with immediate effect but will remain on the Board of the Company as a Non -
Executive Director.

Howard Bell, the Chairman of Invocas, said "We would like to thank John for his
service as Chief Executive Officer and his significant contribution to the Group
in that role".

"With the other Executive Directors, John has been largely responsible for
taking the Company through flotation and building the business into one of the
UK's leading providers of debt solutions. He has steered the Group through a
period of market turbulence and steps down with the Group in robust financial
health. John has recognised that, for the business to move to the next level,
the Executive Board and senior management need wider skills within the broader
financial services sector. He has therefore decided to move aside at this time
to allow himself more time to devote to other business interests and to his
young family. John remains a supportive shareholder and will continue to promote
the interests of Invocas within the wider debt sector.

The Board will now commence the selection of a new Chief Executive Officer.
Stephen Lightley, our Finance Director, will be acting Chief Executive Officer."

Trading Update

The trading conditions that have affected the debt solutions market in the last
12 months have not been favourable, but due to our significant cumulative Trust
Deed case load we have been able to maintain a strong financial performance.

Diversifications into new service lines and increasing self generation of leads
have been the achievements of our business during this period.

As we reported in December, we experienced a significant downturn in Trust Deed
leads from our traditional work referrers during 2007. We believe that this
change reflected the impact of commercial pressures throughout the UK which have
resulted in a general withdrawal from the advertising of formal insolvency
solutions.

In response to this, we have undertaken a strategic review of our lead
generation sources and have developed a strategy to become self reliant in the
generation of leads. In the last six months, we have begun to source leads
through lead purchase and by advertising. Lead acquisition of this nature has
increased the marketing expenditure in the last quarter but, by restricting
these activities within the Scottish marketplace, we have been able to source
leads without suffering from the penal costs that others in the broader sector
appear to have experienced.

We are pleased to say that we are now seeing the benefits of this change in
marketing strategy and that our lead streams have increased substantially in the
period since 30 September. The current monthly level of revenue opportunities is
approximately twice what it was six months ago.  Many of these opportunities
relate to service lines other than Trust Deeds reflecting the diversifications
in our service range. Newtomorrow is now our biggest source of revenue
opportunities on a month to month basis, providing just over 60% of our current
total revenue opportunities and approximately 40 % of our Trust Deed
opportunities.

At the same time, we are looking to rebuild our base of Trust Deed referrers and
we continue to put in place arrangements with new providers. The credit crunch
provides opportunities for referrals from businesses within the financial
services sector that previously did not see debt solutions as a priority.  These
opportunities are significant and, whilst it is early days, our offerings have
been well received.

We are also pleased to be able to report an improvement in the trend of numbers
of Trust Deed cases now being signed. Whilst it seems likely that, as a result
of the market turmoil in 2007, the number of Trust Deed cases signed in the six
months ended 31 March 2008 will be well down on that signed in the equivalent
six month period to 31 March 2007, we are now seeing an increase quarter on
quarter.

We continue to apply our minimum case acceptance criteria to Protected Trust
Deeds with a view to delivering truly sustainable solutions and optimum returns
to creditors. As a result, whilst there is increasing scrutiny by creditors and
their representatives of fees and dividend levels included in Protected Trust
Deed proposals, this has not resulted in any significant increase in the number
of our proposals rejected by creditors.

The six months have seen significant progress towards our strategy of offering a
full range of personal debt solutions in house. We now provide IVA and Debt
Management services. Both service lines are building organically and, in
addition, we have purchased two portfolios of IVAs. At 31 March we had some150
IVA cases and just under 100 DMP cases under management.

Operationally, we are about to make a significant investment in revised software
and operational procedures to enable us to deliver our full range of personal
debt services more effectively and efficiently.

We shall announce the detailed results for the year ended 31 March 2008 on 25
June 2008.

At this stage, we anticipate that the results from recurring activities will be
a little below market forecasts, but not less than the results for last year,
reflecting in particular the increased marketing expenditure in the period, the
benefits from which will be enjoyed in the future. In addition, an exceptional
charge will be made in the financial statements for the salary and benefits due
to John Hall for his 12 month notice period as an Executive Director.

Macro economic conditions continue to move in our favour. UK personal debt at
the end of February stood at £1,421 billion and the implications of the fall out
from the credit crunch are likely to be significant for those looking for
credit. The IVA protocol process has now been completed, with the BBA's members
having agreed to reassess hurdle rates. We therefore expect demand for our range
of personal debt solutions to increase further during 2008.

Turning to the corporate insolvency and advisory market, we have seen an
increase in the number of companies seeking both our informal advice and formal
insolvency solutions during the last six months. This is a trend which, along
with many other commentators, we expect will continue in 2008 as the credit
squeeze and reduced consumer spending both continue to bite.

We continue to be cash generative and to enjoy an extremely strong balance sheet
with net cash of in excess of £4.2m. We are therefore well placed to take
advantage of the opportunities for consolidation and acquisition which the
sector is likely to generate over the coming year.


                              Website: www.invocas.com

For further information:

Invocas Group plc                         Tel: [phone]
Stephen Lightley,                               07767 804324
Acting Chief Executive Officer


Charles Stanley Securities                Tel: [phone]
(Nominated Adviser)
Philip Davies



Notes to editors

Invocas is one of the UK's leading providers of personal and corporate debt
solutions. Its Personal Insolvency Division is firmly established as a leading
provider of Protected Trust Deeds (Scottish equivalent of IVAs). Its Corporate
Services Division enjoys an excellent reputation in the Scottish market place.

Invocas applies stringent minimum case acceptance criteria to Trust Deeds. It
will only accept a case if it is likely to progress smoothly to completion and
result in a successful outcome which balances the interests of both the indebted
individual and their creditors.

The Group's Newtomorrow service aims to provide indebted individuals with the
right advice, first time, every time. This is achieved in a caring and
professional manner by a team of highly experienced debt advisors delivering
front line advice. Further information on Newtomorrow can be found at
www.newtomorrow.com






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