27th Jun 2006 07:02
Debt Free Direct Group PLC27 June 2006 27 June 2006 DEBT FREE DIRECT GROUP PLC LAUNCH OF DEBT FREE DIRECT AUSTRALIA Debt Free Direct Group Plc ("Debt Free Direct") announces today that it intendsto launch a new business venture in Australia in the third quarter of 2006,which is expected to be fully operational by late 2006. Outline Debt Free Direct Group Plc will ultimately own 75% of an Australian subsidiary(Debt Free Direct Australia Pty Limited). Debt Administrator services (the Australian equivalent of the services providedby an Insolvency Practitioner) will be provided by experienced local management,based in Sydney, Australia. Anthony John Warner and Clifford John Sandersonhave between them over 35 years of debt advisory experience (see further detailsbelow). Debt Free Direct will provide technical, IVA systems and marketing expertise, aswell as the Debt Free Direct brand and registered trademark in Australia. Operational details and timescale Operations will commence in the third quarter of 2006 with a view to thebusiness being fully operational by late 2006, in anticipation of the busypost-Christmas period. Premises have been identified in Sydney, Australia and a recruitment campaign isunder way. UK based DFD staff will be seconded to assist in the start-upprocess on a limited basis. The Australian market The Australian population is approximately 20 million, representing one third ofthe UK. Australian consumers' levels of over-indebtedness are running at recordlevels, and now exceed 150% of annual disposable household income (only 40% in1980), an historical high. Many observers believe that Australia is overdue for an economic downturn. Anysort of macro-economic shock will materially increase the number of personalinsolvencies. Debtors are largely uninformed about their options, as is the case in the UK,and will benefit from a Best Advice driven approach, which has been thecornerstone of Debt Free Direct's success to date in the UK market. Inconsequence, there is great scope to increase the proportion of Debt Agreements(the Australian equivalent of IVAs) compared to Bankruptcies. Scale of opportunity The new business is targeted to grow to represent in excess of 20% of theAustralian Debt Agreements (IVAs) market over the next 2 - 3 years. Weanticipate that this would represent a monthly run-rate of new Debt Agreementsof in excess of 200 cases per month. We anticipate that the business will be profit-neutral for the first 2 years ofoperation. Ultimately, we believe that the potential value of the investment weare making will be proportional to that demonstrated previously in the UKmarket. Andrew Redmond, CEO, commented "We are excited about the long term prospects inthe Australian market. We believe that our ethical approach, proven marketingknow-how and proven systems expertise, combined with our focus on providing theconsumer with best advice, will prove to be a great success in Australia. Weare confident in the management team we have chosen, and look forward to DebtFree Direct Australia emulating the success of Debt Free Direct in the UK." Cliff Sanderson ACA Qualified as a Chartered Accountant at Ernst & Young in 1986 and in 1999 becamea partner of Ernst & Young Australia in the Corporate Restructuring Division.From 1998 to 2005 he led Ernst & Young's Transaction Advisory Services practicein Indonesia. He returned to Australia in 2005 and is a founding partner of aspecialist debt advisory practice, CRS Warner Sanderson. In late June 2006 hewas appointed as a Director and Chief Executive Officer of Debt Free DirectAustralia. He has over 20 years of debt advisory experience in Australia andinternationally. Anthony Warner ACA Qualified as a Chartered Accountant in 1996 whilst at Ernst & Young. He spent 9years within Ernst & Young's Corporate Restructuring Division in Sydney andLondon. In 2003 he established the Sydney insolvency practice for WorrellsSolvency and Forensic Accountants and was appointed as the Managing Partner. In2005 he co-founded a specialist debt advisory practice, CRS Warner Sanderson.In late June 2006 he was appointed as a Director of Debt Free Direct Australia.He has over 15 years of debt advisory experience in Australia andinternationally. Enquiries: Debt Free Direct Group plcAndrew Redmond, Chief Executive Officer 01257 240599Paul Latham, Finance Director 01257 240529 Numis SecuritiesIain McDonald 020 7776 1500Lee Aston Financial DynamicsEd Gascoigne-Pees 020 7269 7132Nick Henderson 020 7269 7114 Notes Debt Free Direct helps individuals find the best solution to their debtproblems, based upon an analysis of their particular financial circumstances.Financial information on an individual is processed through a computer model(the Best Advice Model) developed by Debt Free Direct in order to recommend asolution suitable for that individual's particular financial circumstances. Thesolutions offered range from basic advice, such as simply destroying creditcards and curbing unnecessary expenditure, to the following solutions: • consolidation loan • re-mortgage • informal arrangement • individual voluntary arrangement (IVA) • bankruptcy Debt Free Direct is unique in the marketplace in that, unlike most of itscompetitors who sell specific products, Debt Free Direct looks to provide thebest advice to the consumer and recommends them the most appropriate service. Debt Free Direct is based in Chorley, Lancashire, and was admitted to AIM inDecember 2002. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Frp Advisory Group