Imagine the board meeting to discuss the results for 2005. Two scenarios - first how bad debts are screwing up the personal side of the business, second how to make the huge profits politically acceptable. IMO the second is much more likely, with BARC being more prudent than many in the sector, hence the massive increase in "provisions" (i.e. possibility only of default, not actual bad debt) which may or may not be released back into profits in years to come. Looks a core long term holding to me, with steadily increasing dividends and takeover possibility in for nowt, but dyor.

Thanks Alan - look forward to fruits of your deliberations in due course. I have recently taken a modest position at 90p in Scottish debt recovery firm Invocas, which appears to have a different (and in my view more professional) business model than the ambulance chasers south of the border.