Relax Grp Share Discussion Threads

[alexacj] 11/12/2008 17:31

BB......to be honest free debt advice/management has been available for a very long time through Citizens Advice.....the problem is they can't cope with the workload!! I guess you've made your decision to stay out of Debt co's.....the results from Invocas further underline the growing strength of these co's imho!!....growth is not dependant upon further aquisition...have a look at the results and DYOR on why they are able to exceed 2009 estimates based on current business.....2009 is going to be VERY bad for individuals....especially within the UK....and no matter how long you defer interest ...if you have no job or income and are trying to pay off a mortgage/debts and household bills....then you are in real trouble....anyone who believes that just deferring payment will save them is in for a very big shock....all of that easy money is coming to hit consumers hard....we are much nearer a depression (rather than a recession) than anyone thinks......come back to this board in the final quarter of 2009 and we'll review whats happened then!!!!

[jarvis4] 11/12/2008 17:24

Whatever Gordon Brown might say I cannot see Banks allowing two year mortgage interest payment holidays when the same GB is pressuring Banks to increase their lending levels whilst charging 12% on the money Government has lent to the Banks. If they can continue to show growth in 2009 then I will feel more confident about their longer term success. The sector is down, but by no means out.

[billybigguns] 10/12/2008 16:14

This markets knackered. Will take alot longer than 2009 to recover. Now people can defer interest payments on mortgages for 2 years why would they want an IVA? Payplan offer a free debt management service & secured lender is dead & buried.

In my opinion the only way they can underpin a strong set of results next year is the same way they did this year - by aquisition. 1 problem - No one out there worth buying & banks reluctant to offer lines of credit for purchase.

IMO this whole sector has had its day! DYOR.

[alexacj] 27/11/2008 09:44

Great set of results.....The £3 million was earned in the second 6 months (breakeven in the first 6 months).....the finance arm of the business is currently lending £3million per month which is 6% of the loan market!! Just imagine where this will go once credit availability returns.......a VERY positive outlook and a statement that the company will exceed market expectations for 2009....so upgrades on the way....and we are currently on a 2009 pe of 1.8.......!! I suspect 2009 will see huge growth as the recession bites hard!

CEOs Quote from the results -

"The outlook for the Group is extremely positive and market conditions are providing an excellent back drop from which we believe we can significantly grow our business operations over the next 3 years.

We look forward to the next year and the further progress of the Group and are confident we will exceed market expectations in respect of profitability, growth and cash flow"

[jarvis4] 27/11/2008 09:23

In answer to the question in the heading I believe the answer now is YES!

[naeclue] 09/10/2008 09:45

Saw the Invocas trading update, and bailed, pretty much. Good luck to those who still hold, maybe Relax are faring better.

[naeclue] 09/9/2008 10:54

I'm concerned about the overhead that acquiring Relax may bring. The debts.co.uk side of the business looks to be in stronger shape. There is a growing pool of customers, and a shrinking level of competition. Underpinning (I suspect) the company is the Trust Deed business, which seems sound.

Final results will be interesting for forward guidance, and to see how the sectors of the company stack up together.

[billybigguns] 07/9/2008 23:06

The 'relax homeloan' side of the business will be a big drain on resources in the current climate, no lenders & falling house prices will make it difficult to find new customers. Payplan offering free debt management & fees restricted on IVA's may also hit the other income streams. Be an interesting 12 months, especially after seeing the rise & fall of other companies in this sector. IMO.

[alexacj] 01/9/2008 10:06

There should be a lot more room for share price growth here......the next set of results should put RLX on a pe of 6 falling to 3 next year......that would suggest a 12 month target of around 60p rising to over £1 if the company can hit or exceed it's 2009 forecasts.......the economy seems set to unfortunately provide many punters in need of RLX services! AIMHO!

[naeclue] 29/8/2008 16:36

Well, that was a better week for a change, I think I'll start a new thread every week and see how we go.....

[jarvis4] 28/8/2008 16:43

NaeClue,

Like you I will be interested in forward guidance, but there is a clue in the trading statement where they talk about increasing trends post June (from memory) Personally I'm not too worried about the lack of credit for the loans business as I suspect loans will be the farthest thing from most people's minds for the foreseeable future. They have shown a willingness to close offices and reduce headcount when needed so my expectation is that with full year figures where they were expected to be, rising trends, an expanding market of over-extended individuals and tight financial control we will see this business re-bound. This will not take place overnight (however good there figures) as there is no confidence in the marketplace generally. I intend just sitting on my holding and watching

[inkyrules] 28/8/2008 14:00

I bought in at over £2 and i dont think i will ever get my money back..gutted

[naeclue] 28/8/2008 11:16

Hi Jarvis, I'm sitting on 80% losses on this too, having averaged up previously. Ouch.

I'm a little concerned that the trading statement says that they can't access credit for their loans business, but the performance of Invocas in Scotland, as well as the sheer weight of the debt problem makes me think there may be some hope.

I'll be interested in forward guidance (I am not sure if the relax end of the business will just suck away cash) in the annual results.

The fact that they have made acquisitions is either a terrific decision (buying while cheap) or a terrible one.

[jarvis4] 28/8/2008 10:45

NaeClue,
It would be nice to think so - particularly as I am in from just over £1..ouch!

I took the view after they had fallen from above £2 that with the credit crunch and the agreement on IVA's that Debts would come into it's own. I didn't foresee the deep market disillusion with this sector and also the impact on individuals has taken longer to arrive. The diversification of the business is sensible and if the last year comes in at forecast levels then this should certainly help, especially as the RNS talks about rising interest post June. The next twelve months are going to be very difficult financially for increasing numbers of people and if sentiment in the market generally turns positive in the spring - which I expect - then this should be a good recovery play. I may even buy more at that stage.

[naeclue] 27/8/2008 16:40

Relax (formerly Debts.co.uk) has become a diversified debt management group, expanding beyond the IVA business to work with Trust deeds, debt management plans, and loan and mortgage products for those with lower credit ratings.

Certainly beaten to hell, but has continued with acquisitions, and now claiming to be in line with forecasts for y/e 31/7/8, (eps 7.38p).



We'll see.....

[energyi] 16/7/2007 20:32

WHAT HAPPENED TO...

ALBERTSONS INC ABS -
SUPERVALU and an investment group led by Cerberus Capital Management, L.P., have reached a definitive agreement to acquire Albertson's Inc

FEDERATED DEPARTMENT STORES INC FD - xx
MAY DEPARTMENT STORES CO MAY - xx?
TOYS R US HOLDING CO TOY - xx?
WINN DIXIE STORES INC WIN - xx?