Interim Results

Debt Free Direct Group PLC
15 January 2004

15th January 2004




              INTERIM RESULTS FOR SIX MONTHS ENDED 31 OCTOBER 2003

               FURTHER PROGRESS, SOLID RESULTS, MOVE INTO PROFIT


HIGHLIGHTS

Debt Free Direct PLC, the leading debt advice and solutions company, announces
its results for the six months ended 31 October 2003.

Highlights include:

•    Successful fundraising of £3.7 million via the placing of 6,416,667
     ordinary shares at 60p per share principally with institutional investors.
     Placing proceeds were used to reduce gearing, and to increase the Group's
     operating capacity and its flexibility to pursue new business opportunities

•    Offer made to acquire the outstanding preference shares and loan notes
     in order to strengthen the balance sheet and reduce the level of gearing

•    Further progress towards broader business model

•    Additional investment in IT and operational and management resources
     to support Debt Free Direct's philosophy of best advice, laying a firm
     foundation for future growth

•    New premises established to accommodate growth in the business

•    Financial performance in line with expectations with EBITDA of
     £318,127 and profit after tax of £111,172 compared with EBITDA of £54,404 
     and loss after tax of £114,850 for the five months included in the 
     financial period ended 30 April 2003

•    Net cash position of £2.35 million

•    Net assets increased from £0.5 million to £4.3 million

•    Strong trading in the post Christmas period

•    Debt Free Direct is poised to exploit its distinct position in a large
     and growing market


Grenville Folwell, Chairman, said:

'I am delighted that the Group has continued to make progress and has made a
profit before and after tax in the 6 months to October 2003.  The Group has used
the proceeds of the successful placing to invest in the business and increase
its operating capacity.'

'The Group is poised to exploit its distinct position in a large and growing
market.  By providing best advice to our target sector and by maintaining our
high ethical and regulated standards, we aim to become the leading provider of
advice and appropriate solutions to over-indebted consumers in a rapidly
expanding marketplace.'


Enquiries

Debt Free Direct                   0207 638 9571/01257 240 512
Andrew Redmond                     07967 746 003
Paul Latham                        07967 746 005

Citigate Dewe Rogerson             0207 638 9571
Michael Berkeley
Sarah Gestetner
Fiona Mulcahy

W.H. Ireland Ltd.                   0161 832 6644
David W. Youngman


Notes to Editors

Debt Free Direct helps individuals find the best solution to their debt
problems, 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 a
solution suitable for that individual's particular financial circumstances.  The
solutions offered range from basic advice, such as simply destroying credit
cards and curbing unnecessary expenditure, to the following solutions:

  • consolidation loan
  • re-mortgage
  • informal arrangement
  • individual voluntary arrangement (IVA)
  • bankruptcy

Debt Free Direct has a distinct position in the marketplace in that unlike most
of its competitors who sell specific products, Debt Free Direct looks to provide
the best advice to the consumer and recommends to them the most appropriate
service.

Debt Free Direct is based in Chorley, Lancashire and was admitted to AIM in
December, 2002.


                             Chief Executive Report

The last 6 months have been particularly important in building on the existing
foundations which were laid in the period following the successful admission to
AIM in December, 2002.

Institutional Placing

The additional financing of £3.7m (net) achieved by the institutional placing in
September 2003 has allowed the Group to continue to make progress and build for
the future.

Investment in Resources

Good progress has been made towards broader business model.

Investments have been made in increasing operational and management resources as
well as providing new premises to accommodate anticipated future growth.

The Group's registered office has changed to Cloth Hall Court, Infirmary Street,
Leeds, Yorkshire LS1 2JB.

Strengthening the Balance Sheet

In December 2003, an offer was made by the company to acquire all of the
preference shares and loan notes issued by its subsidiary (Debt Free Direct
Limited).  To date, acceptances of the offer have been received in respect of
91.5% by value of the preference shares and loan notes.  Completion of the offer
remains subject to shareholder approval at an EGM to be held on 10th February
2004.

A successful completion of the offer to acquire preference shares and loan notes
would significantly reduce the level of gearing on the company's balance sheet
and allow the business to increase its operating capacity as well as its
flexibility to pursue new business opportunities.

Operating Performance

As a result of the existing growth strategy the group has continued to make good
progress.

The EBITDA for the period for the group is £318,127 compared with £54,404 last
year. Furthermore profit after tax was £111,172 compared with a loss of £114,850
for the five month trading period that were included in last years financials.

Going Forward

The market for our services continues to expand and we are now well placed to
grow our business further. The building stage is nearly completed and we look
forward over the coming months to further our ambition to become the leading
provider of advice and appropriate solutions to over-indebted consumers.

A Redmond
Chief Executive Officer
15 January 2004



CONSOLIDATED PROFIT AND LOSS
ACCOUNT

PERIOD FROM 1 MAY 2003 TO 31
OCTOBER 2003
                                               Period from       Period from
                                               1 May 03 to       26 Apr 02 to
                                                31 Oct 03         30 Apr 03
                                                    £                 £

TURNOVER                                         1,856,833          1,058,248
Cost of sales                                    (590,055)          (738,877)


GROSS PROFIT                                     1,266,778            319,371

Administrative expenses                          (948,651)          (264,967)


EBITDA                                             318,127             54,404

Depreciation                                      (26,375)           (23,074)
Goodwill amortisation                            (152,006)          (126,641)


OPERATING PROFIT/(LOSS)                            139,746           (95,311)

Interest receivable                                  7,403                963
Interest payable and similar                      (35,977)           (80,443)
charges


PROFIT/(LOSS) ON ORDINARY
ACTIVITIES BEFORE AND
AFTER TAXATION                                     111,172          (174,791)

Tax on loss on ordinary activities                       0             59,941


PROFIT/(LOSS) FOR THE FINANCIAL                    111,172          (114,850)
PERIOD


Profit/(Loss) per share - basic                      0.47p            (1.28p)
and diluted


The group has no recognised gains or losses other than the results for the 
period as set out above. All of the activities of the group are classed as 
continuing.



CONSOLIDATED BALANCE SHEET

AS AT 31 OCTOBER 2003
                                         As at 31 Oct 03                    As at 30 Apr 03
                                          £           £                      £           £
FIXED ASSETS

Intangible assets                                  2,639,418                          2,791,424
Tangible assets                                      206,656                            211,349


                                                   2,846,074                          3,002,773

CURRENT ASSETS
Debtors                                1,641,207                          1,254,124
Cash at bank                           3,682,134                             81,249


                                       5,323,341                          1,335,373

CREDITORS: Amounts falling due       (1,717,430)                        (1,672,471)
within one year


NET CURRENT ASSETS                                 3,605,911                          (337,098)

CREDITORS: Amounts falling due after more than     (155,672)                          (168,392)
one year

PROVISION FOR LIABILITIES AND                    (1,987,987)                        (1,987,987)
CHARGES


                                                   4,308,326                            509,296


CAPITAL AND RESERVES
Called-up equity share capital                       289,167                            225,000
Share premium account                              4,022,837                            399,146
Profit and loss account                              (3,678)                          (114,850)


SHAREHOLDERS' FUNDS                                4,308,326                            509,296







CONSOLIDATED CASH FLOW STATEMENT

PERIOD FROM 1 MAY 2003 TO 31 OCTOBER
2003

                                                   Period from 1 May 03            Period from 26 Apr02
                                                       to 31 Oct 03                    to 30 Apr 03
                                                       £          £                    £          £

NET CASH OUTFLOW FROM OPERATING                                 (36,717)                       (369,093)
ACTIVITIES

RETURNS ON INVESTMENTS AND SERVICING OF
FINANCE

Interest received                                       7,403                             963
Interest paid                                        (35,977)                        (29,783)

NET CASH OUTFLOW FROM RETURNS ON
INVESTMENTS AND SERVICING OF FINANCE                            (28,574)                        (28,820)

CAPITAL EXPENDITURE

Payments to acquire tangible fixed                   (21,681)                        (33,281)
assets

NET CASH OUTFLOW FROM CAPITAL                                   (21,681)                        (33,281)
EXPENDITURE

ACQUISITIONS

Cash acquired with subsidiaries                                                       271,822

NET CASH INFLOW FROM ACQUISITIONS                                                                271,822


NET CASH OUTFLOW BEFORE FINANCING                               (86,972)                       (159,372)

FINANCING

Issue of equity share capital                       3,850,000                         373,572
Professional costs charged to the share             (162,142)                       (168,167)
premium account

NET CASH INFLOW FROM FINANCING                                 3,687,858                         205,405


INCREASE IN CASH                                               3,600,886                          46,033






RECONCILIATION OF OPERATING PROFIT TO NET CASH OUTFLOW
FROM
OPERATING ACTIVITIES

Operating profit                                             139,746                       (95,311)
Amortisation                                                 152,006                        126,641
Depreciation                                                  26,375                         23,074
Increase in debtors                                        (387,083)                      (402,548)
Increase in creditors                                         32,239                       (20,949)


Net cash outflow from operating                             (36,717)                      (369,093)
activities


RECONCILIATION OF NET CASH FLOW

Increase in cash in the period                             3,600,886                         81,249
Hire purchase agreements acquired                                                          (35,216)
with subsidiary


                                                           3,600,886                         46,033



CONSOLIDATED ACCOUNTS FOR THE PERIOD FROM 1 MAY 2003 TO 31 OCTOBER
2003

NOTES

1.   EARNINGS PER SHARE

The earnings per share has been calculated using the profit for the financial 
period and a weighted average number of ordinary shares in issue during the six 
month period to 31 October 2003 of 23,790,308 (8,961,260 for the period ended 
30 April 2003).

2.   COMPARATIVE FIGURES

The comparative figures represent the period from incorporation on 26 April 2002 
to 30 April 2003 and consolidate the results of subsidiary undertakings from 
their acquisition in December 2002.

3.   STATUS OF FINANCIAL
INFORMATION

The unaudited financial information in this report has been prepared in 
accordance with applicable accounting standards and was approved by the Board on 
15 January 2004.


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