Interim Results

Debt Free Direct Group PLC
28 November 2005


28 November 2005

DEBT FREE DIRECT GROUP PLC

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2005

Full year profits anticipated to be at least 10% ahead
of current consensus market expectations
on the back of excellent interim results

Debt Free Direct Group (DFD), the leading debt advice and solutions company,
today announces its interim results for the six months ended 31 October 2005.

Michael Blackburn, Chairman, commented:

'DFD's impressive results speak for themselves. We continue to deliver strong,
profitable growth and have consolidated our leadership in the fast growing IVA
market. We anticipate that our market share will continue to grow in the months
ahead.

In the light of this, the board is declaring a maiden interim dividend of 1.5p
per share in respect of the six months ended 31 October 2005. The board intends
to recommend a dividend of 3p in aggregate for the full year. The interim
dividend will be paid on 4 January 2006 to shareholders on the register as at 9
December 2005. In future, we intend to adopt a progressive dividend policy,
whilst continuing to deliver growth to shareholders.'


Results highlights


• Turnover for the six months to 31 October 2005 more than doubled to £6.4
  million, compared to £3.1 million in the corresponding period to 31 October
  2004.


• This growth in turnover reflects the average activity level for the
  period. This activity level, best represented by the new IVA run-rate,
  continued its upward trend throughout the period, as demonstrated below.


                                         New IVAs monthly case run-rate                 Average
                                     Joint cases = 1         Joint cases = 2 monthly
                                                                                        turnover
                                                                                        £K
3 months to October 2005                  346                     475                   1,318
3 months to April 2005                    250                     342                   1,042
3 months to October 2004                  117                     156                     542


•   The growth in IVA run-rate was achieved by taking an increased share of
    a rapidly growing market. Year on year the IVA market has approximately
    doubled.


•   Gross profit margin has increased to 74% compared to 65% in the prior
    period.


•   The improvement in gross profit margin arises largely as a result of a
    reduced advertising cost per IVA. In the six months to October 2005, our
    advertising cost per new IVA reduced from £1,252 in the year ended 30 April
    2005 to £850, a reduction of 32%.

    The business model is based upon an acceptable acquisition cost per new IVA of
    £1,500. During the last 6 months the business has been operating well within
    these limits (£850 cost per new IVA), clearly demonstrating that further
    expansion is readily achievable. Gross profit margins are anticipated to return
    to normal levels as the run-rate continues to increase.

•   The Group continued to expand its operational capacity, increasing its
    workforce by 41% and IP numbers from 5 to 7. Overall labour costs as a
    percentage of turnover reduced by 10%.


•   We have made notable senior management appointments during the period in
    Derek Oakley and Grahame Crofton. Derek, Director of Insolvency, takes
    responsibility for strategic development in insolvency-related matters.
    Grahame, who joined us recently from Cable & Wireless, will focus on process
    efficiency and operational development


•   Financial performance is ahead of management's expectations, with EBITDA
    profit of £1.8m, adjusted PBT of £1.86m and PAT of £1.2m, compared to £251K,
    £148K and a loss after tax of £54K respectively for the same period in 2004.


•   As a result of our ever-increasing bank of recurring supervisory fees,
    DFD became cash-generative from trading in the six months to 31 October
    2005. Net cash increased by £212K in that period.


•   Reported profits for the full year are now anticipated to be at least
    10% ahead of current consensus market expectations. In the light of this,
    the board is declaring a maiden dividend of 1.5p per share in respect of the
    six months ended 31 October 2005. The board intends to recommend a dividend
    of 3p in aggregate for the full year.



Enquiries:

Debt Free Direct Group plc
Andrew Redmond, Chief Executive Officer                 01257 240599
Paul Latham, Finance Director                           01257 240529

Numis Securities                                        020 7776 1500
Iain McDonald
Lee Aston

Financial Dynamics                                     020 7831 3113
Ed Gascoigne-Pees
Dominick Peasley


Note 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 is unique 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 them the most appropriate service.

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


DEBT FREE DIRECT GROUP PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT

PERIOD FROM 1 MAY 2005 TO 31 OCTOBER 2005

                                       Period from   Period from     Year from
                                       1 May 05 to   1 May 04 to   1 May 04 to
                                         31 Oct 05     31 Oct 04     30 Apr 05

                                        Unaudited     Unaudited       Audited

                                            £'000         £'000         £'000

TURNOVER                                    6,427         3,089         8,422
Cost of sales                              (1,683)       (1,076)       (2,389)
                                            _____         _____         _____
GROSS PROFIT                                4,744         2,013         6,033

Administrative expenses                    (2,940)       (1,762)       (4,006)
                                             _____         _____         _____
EBITDA                                      1,804           251         2,027

Depreciation                                  (94)          (77)         (160)
Goodwill amortisation                        (156)         (157)         (312)
                                             _____         _____         _____

OPERATING PROFIT                            1,554            17         1,555

Interest receivable                           158            14            72
Interest payable and similar charges           (6)          (40)          (84)

PROFIT/(LOSS) ON ORDINARY ACTIVITIES
BEFORE TAXATION                             1,706            (9)        1,543

Tax on profit/(loss) on ordinary
activities                                   (512)          (45)         (565)
                                             _____         _____         _____

PROFIT/LOSS FOR THE FINANCIAL PERIOD        1,194           (54)          978
                                             _____         _____         ____

Profit/(loss) per share - basic              3.23p       -0.17p          3.04p
Profit/(loss) per share - diluted            3.14p       -0.17p          2.97p
Profit/(loss) per share - diluted
and adjusted                                 3.43p         0.33p         3.95p



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.



DEBT FREE DIRECT GROUP PLC

CONSOLIDATED BALANCE SHEET

AS AT 31 OCTOBER 2005

                                 As at 31 Oct 05         As at 31 Oct 04     As at 30 Apr 05

                                          £000                      £000                £000
FIXED ASSETS

Intangible assets                        2,096                     2,400               2,251
Tangible assets                            738                       602                 737
                                         _____                     _____               _____
                
                                         2,834                     3,002               2,988

CURRENT ASSETS
Debtors                                  8,369                     3,753               6,669
Cash at bank                             6,966                      (182)              6,782
                                         _____                     _____               _____

                                        15,335                     3,571              13,451

CREDITORS: Amounts falling due 
within one year                         (2,079)                   (1,044)             (1,556)
                                         _____                     _____               _____
           
NET CURRENT ASSETS                      13,256                     2,527              11,895

TOTAL ASSETS LESS CURRENT LIABILITIES   16,090                     5,529              14,883

CREDITORS: Amounts falling due 
after more than one year                   (51)                     (42)                 (73)

PROVISION FOR LIABILITIES AND CHARGES      (64)                     (94)                 (64)
                                         _____                    _____                _____
            
                                        15,975                    5,393               14,746
                                        ______                    _____                _____
CAPITAL AND RESERVE
Called-up equity share capital             372                      309                  370
Share premium account                   13,489                    5,196               13,456
Profit and loss account                  2,114                     (112)                 920
                                         _____                     _____                _____

SHAREHOLDERS' FUNDS                     15,975                    5,393               14,746
                                         _____                     _____                _____
    




DEBT FREE DIRECT GROUP PLC

CONSOLIDATED CASH FLOW STATEMENT

PERIOD FROM 1 MAY 2005 TO 31 OCTOBER 2005

                                            Period from 1      Period from 1     Year from 1 May
                                                 May 05               May 04                  04
                                           to 31 Oct 05         to 31 Oct 04        to 30 Apr 05

                                                  £'000                £'000               £'000

NET CASH INFLOW/(OUTFLOW) FROM
OPERATING ACTIVITIES                                 93               (1,168)             (1,617)

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE

Interest received                                   158                   14                  72
Interest paid                                         0                  (35)                (93)
Interest element of
finance lease rental payments                        (6)                  (4)                (10)
                                                   _____                _____               _____
NET CASH INFLOW/(OUTFLOW) FROM RETURNS 
ON INVESTMENTS AND SERVICING OF FINANCE             152                  (25)                (31)

CAPITAL EXPENDITURE

Payments to acquire tangible fixed assets          (68)                 (115)               (248)
Payments to acquire intangible fixed assets          0                     0                  (5)
                                                  _____                _____                _____
    
NET CASH OUTFLOW FROM CAPITAL EXPENDITURE          (68)                 (115)               (253)

ACQUISITIONS

Acquisition of DFD Limited
preference shares and loan notes                     0                     0                 (35)
                                                  _____                 _____               _____
NET CASH INFLOW/(OUTFLOW) FROM ACQUISITIONS          0                     0                 (35)
                                                  _____                 _____               _____

NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING          177               (1,308)             (1,936)

FINANCING

Issue of equity share capital                        35                    0               8,520
Professional costs charged to the share
premium account                                       0                    0                (200)
Capital element of finance lease rental
payments                                            (28)                 (28)                (62)
Repayment of loans                                    0                    0                (711)
                                                  _____                  _____              _____
NET CASH INFLOW/(OUTFLOW) FROM FINANCING              7                  (28)              7,547
                                                  _____                  _____              _____
    
INCREASE/(DECREASE) IN CASH                         184               (1,336)              5,611
                                                  _____                  _____              _____
    
RECONCILIATION OF OPERATING PROFIT TO
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES

Operating profit                                  1,554                   17               1,555
Amortisation                                        156                  157                 312
Depreciation                                         94                   77                 160
Increase in debtors                              (1,700)              (1,111)             (4,069)
(Decrease)/increase in creditors                    (11)                (308)                425
                                                   _____                _____               _____

Net cash inflow/(outflow) from operating 
activities                                           93               (1,168)             (1,617)
                                                   _____                _____               _____
    
RECONCILIATION OF NET CASH FLOW

(Decrease)/Increase in cash in the period           184               (1,336)               5,611
Hire purchase agreements acquired with
subsidiary                                            0                    0                    0
                                                  _____                 _____               _____

                                                    184               (1,336)                5,611
                                                  _____                 _____               _____

DEBT FREE DIRECT GROUP PLC
CONSOLIDATED ACCOUNTS FOR THE PERIOD FROM 1 MAY 2005 TO 31 OCTOBER 2005
NOTES

1. EARNINGS PER SHARE

   The earnings per share (basic) 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 2005 of 37,019,872
   (30,949,200) for the period ended 31 October 2004 and 32,182,064 for the
   year ended 30 April 2005.

   The diluted EPS number takes the weighted average number of ordinary
   shares in issue during the six month period to 31 October 2005 and
   increases this to take account of the dilutive share options existing at
   this date, resulting in a denominator of 38,021,058 (31,657,662) for
   the period ending 31 October 2005 and 32,890,526 for the year ended 30
   April 2005.

   The diluted and adjusted EPS number uses the same number of shares as
   above, but is based on profits before tax with amortisation charges
   added back, with the new profit number then subjected to a 30% tax
   charge.

2. COMPARATIVE FIGURES

   The comparative figures represent the 6 month period to 31 October 2004
   and the year from 1 May 2004 to 30 April 2005.

3. STATUS OF FINANCIAL INFORMATION

   The accounts of the Group for the six months to 31 October 2005 were
   approved by the Board on 25th November 2005.

   The interim financial statements have not been audited and do not
   constitute statutory accounts as defined under s.240 of the Companies
   Act 1985.

   The interim financial statements have been prepared in accordance with
   applicable accounting standards and are consistent with those adopted
   and disclosed in the Group's statutory accounts for the year ended 30
   April 2005. Those accounts, upon which the auditors issued an
   unqualified opinion, have been delivered to the Registrar of Companies.

4. DISTRIBUTION OF THE INTERIM REPORT

   Copies of the Interim Report are being sent to shareholders. Further
   copies of the Interim and Annual Report and Accounts may be obtained
   from the Company's Registered Office, Cloth Hall Court, Infirmary Street, 
   Leeds. In addition, an electronic version will be available on the
   Company's website, www.debtfreedirect.co.uk




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