Acquisition of Relax Assets

 

TIDMCLEA TIDMRLX 
 
RNS Number : 5589D 
Cleardebt Group PLC 
03 December 2009 
 
ClearDebt Group Plc ("Cleardebt" or "the Company") 
 
 
ClearDebt is pleased to announce that it has today acquired certain assets of 
Relax Group plc (in administration). 
 
 
Highlights 
 
 
  *  ClearDebt has acquired IVAs, Protected Trust Deeds and Debt Management Plans 
  from certain Relax Group subsidiaries 
 
  *  Assets acquired: approximately 2,400 IVAs, 1,300 PTDs and 2,800 DMPs 
 
 
 
  *  ClearDebt to pay total consideration of GBP2.7m 
 
 
 
  *  Net acquisition costs to ClearDebt of GBP3.1m 
 
 
 
 
 
ClearDebt has acquired from the administrator (Jonathan Elman Avery-Gee) part of 
the businesses and assets of four subsidiaries of Relax Group plc (in 
administration), namely approximately 6,500 Individual Voluntary Arrangements 
(IVAs), Protected Trust Deeds and Debt Management Plans. 
 
 
The total consideration of GBP2.7m is being paid in cash from the Company's own 
resources and existing facilities. The Directors believe that the book value of 
the assets acquired were recorded in Relax's last published accounts at a value 
of about GBP6.256m and as such the total consideration is equivalent to 
approximately 40 per cent of that value. The board of ClearDebt see this 
acquisition as the opportunity to expand its operations in the growing IVA and 
debt management sector and, as such, although the Company anticipates the 
collection of debts/fees from the IVAs, PTDs and DMPs going forwards, it does 
not intend to attribute such a high book value to those assets in its accounts. 
 
 
The acquisition takes place after a number of parties expressed interest in the 
business. 
 
 
ClearDebt's CEO, David Mond, said: 
 
 
"The acquisition of these assets should provide strong, predictable additional 
cashflow for the group and our lean administration means we are very confident 
we will manage these cases effectively and at a higher margin than Relax found 
possible". 
 
 
 
 
For further information, please contact: 
 
 
David Mond                    ClearDebt Group plcTel: 0161 969 2023 
Nicola Marrin Seymour Pierce LimitedTel: 020 7107 8000 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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