ClearDebt Posts Maiden Pre-tax Profit In FY09

9/17/2009 4:46 AM ET

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ClearDebt Group Turns To Profit In FY09 - Quick Facts

(RTTNews) - UK-based debt management company ClearDebt Group plc (CLEA.L: News ), Thursday, announced preliminary results for the year ended June 30, posting a maiden pre-tax profit on increased turnover. The company said that the successful diversification of Individual Voluntary Arrangements, or IVA, activities into the debt management arena via the acquisition of Abacus Limited has been the key to this turnaround.

Fiscal 2009 pre-tax profit was GBP 461 thousand compared with loss of GBP 1.2 million in fiscal 2008.

Profit for the year was GBP 407 thousand or 0.13 pence per share compared with a loss of GBP 697 thousand or 0.23 pence per share in 2008.

Revenue for fiscal 2009 increased to GBP 3.4 million from GBP 1.9 million last year. Insolvency segment revenue was GBP 766 thousand compared with GBP 487 thousand last year. Debt Management segment revenue surged to GBP 2.62 million from GBP 1.38 million in 2008.

Gross profit increased to GBP 1.44 million from GBP 108 thousand in 2008, as a result of increased turnover, careful control of salary costs, and ever continuing refinements in marketing spend and additional synergies between ClearDebt and Abacus, the company said.

The company said that the IVA Protocol reached with creditor banks in February 2008 enabled the number of IVA approvals to increase 96% to 483 from 247 in 2008. Income is currently being generated from 858 cases, ClearDebt noted.

New debt management plans increased 6% to 2,856 from 2,707 in 2008, 52% of leads arising from the ClearDebt website. As at June 30, Abacus had 2,860 active paying debt management plans compared with 1,899 last year, a yearly increase of 51%.

Gerald Carey FCIB Chairman said, "The Group is now providing a complete offering of appropriate debt solutions to its clients and continues to realise synergies across its internet marketing platforms. I look forward to another profitable year following a good start to the first quarter."

CLEA.L last traded on Tuesday at 1.90 pence on the LSE, down 0.10 or 5.00%.