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ClearDebt profits soar to £3.96m 23 September 2011

The Manchester-based consumer debt group said the writing of new IVAs and acquisition of revenue generating IVA and debt management books from other companies were significant contributors to today’s results.

Over the 12 months to 30 June, the last quarter showed the highest number of IVAs written during the period (428), up from 411 in Q3, 407 in Q2 and 355 in Q1.

Acquisitions

Just prior to the declared year-end period, the group acquired what it described as a ‘sizeable’ IVA book from Invocas Group and it said it would actively be looking to acquire more client books where possible at ‘reasonable’ prices.

In November 2010 and February 2011, the group also purchased two back books of debt management clients from One Aim Group Limited which has since gone into liquidation.

Gerald Carey, chairman of ClearDebt Group said there was more good news on the horizon too, following the ruling in favour of Paymex Limited against HM Revenue and Customs (HMRC) earlier in the year.

He explained: “In June 2011, a decision was made which ruled that fees for services in relation to IVAs should be treated as exempt from VAT. HMRC confirmed in July they would not appeal.

“As a result of the ruling, we have put a protective claim into HMRC to recover net output tax of some £850,000 incorrectly paid to HMRC over the past 4 years. A proportion of this may be due to us and a proportion due to creditors.”

A work in progress

The group’s pre-paid MasterCard brand ClearCash has yet to make a profit, however.

While a newly launched version of the card was more popular with clients due to the lack of monthly fee, the division is still making a small loss for the group despite revenue from card usage continuing to grow steadily month on month.

 

 

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