Trading Update

RNS Number : 2476S

Accuma Group PLC

14 May 2009

 



Accuma Group plc ('Accuma' or 'the Company')

Trading Update

A Circular concerning the disposals of the business and certain assets of Wilson Phillips Limited and of Accuma Insolvency Practitioners Limited and a Notice of General Meeting, which were announced on 1 May 2009, was sent to shareholders today (14th May 2009). The Company included a trading statement within the Circular, the text of which is set out today: 

'We have previously commented in detail on the impact of significant changes to the IVA sector over the

past eighteen months. Thomas Charles & Co. Ltd, as part of our IVA division, was impacted by these

changes as its primary income was received from marketing services and set-up costs of new IVAs. In line

with Group strategy to reduce direct marketing expenditure, Thomas Charles & Co. Ltd ceased to trade in

the first quarter of 2009 thus stemming any continuing losses in this division. The reduction in direct

marketing expenditure within the IVA division has also impacted on the Group's debt management division,

Byrom & Keeley, which had historically derived considerable benefit from this. In addition, following a

deterioration in the number of enquiries generated from a major lead supplier towards the end of 2008,

alternative lead suppliers were engaged. This led to a reduction in new debt management cases signed on a

monthly basis from an historic average of 301 in the first half of 2008 to 181 in the second half of 2008. The

average, on a monthly basis, of new debt management cases for the first quarter of 2009 was 145.

Following a review of the carrying value of intangible assets in this division, we are of the opinion that, in

the current economic climate, it would be prudent to write down the carrying value of the goodwill relating

to Byrom & Keeley in the Group's balance sheet to £3.5 million and as a result the Group will incur an

impairment charge of £6.58 million in its results for the year ended 31 December 2008. Despite this

impairment, we remain confident of the prospects for this division. Recent agreements for the supply of

clients on a contingency basis should increase our average monthly new client signings, and the Board

believes that the economic climate is favouring debt management businesses as a viable option for creditors and debtors alike.'

Definitions:

'Byrom & Keeley'                 Byrom & Keeley Financial Services Limited;

'Board'                                   the directors of the Company as at the date of this announcement;

'Group'                                    the Company and its subsidiaries; and

'IVA'                                        an individual voluntary arrangement.

For further information please contact: 

Accuma Group plc Charles Howson, Chief Executive	[phone]
FinnCap (Nominated Adviser and Broker) Marc Young /  Geoff Nash	[phone]
Bankside Consultants Simon Rothschild/Oliver Winters	[phone]

 

END

 

 

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