17th Aug 2007 07:01
Accuma Group PLC17 August 2007 Press Release 17 August 2007 Accuma Group Plc ("Accuma" or "the Company" or "the Group") Trading Update Accuma Group Plc, a leading provider of consumer financial solutions, todayreleases a trading update ahead of its preliminary results announcement for theyear ended 31 July 2007, which are scheduled to be released during the weekcommencing 15 October 2007. Results for the year ended 31 July 2007 are expected to be in line with marketexpectations. IVA Business As previously reported, trading conditions over the past year have beendifficult within the IVA sector. A more competitive environment andsignificantly lower approval rates from creditors have impacted on the run rateof new IVA cases. Following much debate amongst stakeholders in the IVA process, agreement inprinciple on a number of areas has been reached that we hope will helpstreamline the process and maximise efficiencies for creditors and InsolvencyPractitioners alike. Regrettably, agreement has not yet been reached on a feestructure for IVAs and this continues to cause uncertainty in the market. Asreported recently in the media, many personal insolvency firms including Accuma,are concerned that creditors are attempting to enforce a fee regime that willseriously restrict access to IVAs as a viable solution for a sizeable percentageof over indebted consumers. The wider nature of the Group which includes Debt Management and Loan provisiongives a resilience against difficulties in any one sector. Despite the decreasein new IVA run rates, with an average of 190 cases per month being completed,and with approximately 6,000 cases under management amounting to £18m ofcontracted revenue, Accuma remain one of the leading IVA companies. Subsidiaries Trading in both our debt management and loan divisions has been in line withexpectations and the outlook for these businesses remains positive. The currenteconomic climate with rising interest rates, uncertainty in the housing marketand disposable incomes continuing to come under pressure we envisage increaseddemand for our services. With regard to the earn out payments due on the acquisitions made during 2006,we are due to make a payment to the vendors of Loan Line in October 2007 of£1.4m and an amount subject to performance to the vendor of Byrom Keeley inMarch 2008, with no payment being due to the vendors of Thomas Charles. With current cash balances of £3.3 million and with the business generatingpositive cashflows on a monthly basis the Board is confident that these paymentscan be made from existing and future cashflows. For further information: Accuma Group plcCharles Howson, Chief Executive Tel: +44 (0) 161 751 [email protected] www.accumagroup.com Daniel Stewart & Company plcLindsay Mair Tel: +44 (0) 20 7776 6550 www.danielstewart.co.uk Media enquiries:AbchurchChris Lane / Emma Johnson Tel: +44 (0) 207 398 [email protected] www.abchurch-group.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Acg Metals