ClearDebt

www.cleardebt.co.uk TICKER: CLEA     EXCHANGE: L

ClearDebt aims to be the most efficient and low-cost producer of Individual Voluntary Arrangements for over-indebted consumers, using a web-based system that allows potential clients to estimate which, if any, Debt Resolution solution is most applicable to their needs (or whether they are, in fact, solvent but worried), before discussing their needs with an expert advisor. Consequently ClearDebt is able to charge less than most competitors and provide IVAs for clients with lower levels of income and indebtedness. It is a leading member of the Debt Resolution Forum, which seeks the adoption and maintenance of professional and ethical standards in the sector. ClearDebt also manages Protected Trust Deeds (the Scottish equivalent of IVAs) and, through its Abacus subsidiary, Debt Management Plans, again charging lower rates than most competitors. Other services include the supply of pre-paid Debit Cards for those who are ineligible for credit.

LATEST REPORTS

 
Looking through the numbers
Published: Sep 27 2011

ClearDebt offers debt resolution services, principally IVAs and DMPs but also PTDs in Scotland, using a state-of-the-art web-based system for initial contact and individual supervision of all the later stages in the process, resulting in a higher success rate and lower overall costs than its competitors.

Results showed their core IVA division achieve strong organic growth in 2010-11, doubling to 1,601 the number of new IVAs passed in a declining market: hence more than doubling its market share. The group supplemented organic growth with three acquisitions of “back books” of DMPs and IVAs.

At the current share price the PFER is 7.0x for 2011/2 and 4.4x for 2012/3. We still view ClearDebt as a long-term growth company and consider this undervalues them: our short-term share price target is 3p, with 4.25p for the medium term, versus 2.1p currently.

 
An uninformed reaction
Published: May 27 2011

ClearDebt offers debt resolution services, principally IVAs and DMPs but also PTDs in Scotland, using a state-of-the-art web-based system for initial contact and individual supervision of all the later stages in the process, resulting in a higher success rate and lower overall costs than its competitors.

The market has clearly over-reacted to Fairpoint's trading statement on Monday, 23rd May. They issued a profits warning because the Coalition's “austerity” policies are resulting in fewer people declaring themselves insolvent than under the previous government, but they also anticipated a significant recovery in 2012, with a doubling of its non-IVA revenues on top of a recovery in the IVA market

ClearDebt has issued no warning, but its share price fell by one-eighth, which we think is irrational and consider a fairer value should be at least 3.6p, and preferably 4.5p, which is more than double the current price

 
Growth and deal benefits visible
Published: Sep 20 2010

Debt resolution services using a state of the art web sysytem , then individual supervision

Results show strong growth in core IVA business, plus enhanced scale with purchase of Relax' book

A forward PER of under 4x materially undervalues the Group
 
Good profit growth
Published: Mar 31 2010

Debt resolution services using modern, web based system

Six-fold increase in profits before exceptionals

Re-investment to accelerate growth further

PER of only 4.5x 2010/11 shows value, pending financing
 
Interims
Published: Mar 23 2009

Good growth in both divisions; IVAs approved more than doubling

A move to post tax profit seen in 2009

 
Improving results and beneficary of recession
Published: Nov 18 2008

ClearDebt is one of the few companies for whom the current economic climate is favourable and with both divisions now trading profitably and growing it can look forward with confidence while several rivals are struggling.
 
Results and outlook
Published: Mar 31 2008

Number of IVAs back in uptrend

Accounting for revenue still conservative

Potential for significant profits in more benign environment

ARCHIVE

2007
Trading statement shows cautious optimism
Published: Nov 02 2007

The trading statement at today's AGM was cautiously encouraging. The CEO could report that there are grounds for optimism due to a 16% quarter-on-quarter rise in the number of IVAs completed in the July-September quarter, in contrast to the 1.7% fall in the national total for the quarter, and an increase to 24 completions in October.

Results: more IVAs approved, but market challenging
Published: Oct 03 2007

204 IVAs approved in year as a whole

last quarter showed year-on-year decline, in common with competitors

long term focus on quality and value should find favour with creditors

The Debt Crisis – Made worse by big banks' office politics
Published: Aug 16 2007

As IVA's fall repossessions have risen

IVAs blocked and TIX benefiting

Proposed acquisition of Abacus; specialist in Debt Management Plans
Published: Jun 25 2007

  • Genuine synergies from combining the businesses
  • Volume enhancements expected
ClearDebt; Still aiming to be lowest cost producer of IVAs
Published: Mar 07 2007

  • Interim results show 30% turnover growth
  • Slowing growth reflects specific circumstances
  • IVA protect launched in December
2006
Cleardebt; Payment Protection – the genuinely ethical approach
Published: Dec 05 2006

ClearDebt has just announced an innovative scheme to insure creditors in an IVA against the risk of a debtor falling sick or being made redundant.

ClearDebt itself is taking out a policy underwritten at Lloyds which will cover all IVAs which it supervises.

ClearDebt: Excellent trading update shows potential
Published: Jul 17 2006

  • Fast-growing market
  • Demand exceeds supply, so attractive returns available
  • Innovative approach, leading to high-quality, lower-cost
  • Resulting in exceptional rate of growth
  • Potential to dominate the market for smaller IVAs