TIDMACG
RNS Number : 2476S
Accuma Group PLC
14 May 2009
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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 GBP3.5 million and as a result
the Group will incur an
impairment charge of GBP6.58 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 | +44 (0)161 751 |
| Charles Howson, Chief Executive | 6787 |
| | |
+---------------------------------------------------------------+--------------------+
| FinnCap (Nominated Adviser and Broker) | +44 (0)20 7600 |
| Marc Young / Geoff Nash | 1658 |
| | |
+---------------------------------------------------------------+--------------------+
| Bankside Consultants | +44 (0) 207 367 |
| Simon Rothschild/Oliver Winters | 8888 |
+---------------------------------------------------------------+--------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
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