This one as a market cap around 20 million and floated only a few months back but looks to have been overlooked by the small investor and could be a sound play as a defensive in these docile markets.

We all know about the number of people in debt and over burden with credit and also the huge increase in bankrupts. I picked out Debt Free Direct about 18 months ago as I could forsee the present market conditions taking place. Accuma is cheaper than Debt Free Direct after its large rise, and as far as I can see as larger number of areas it covers.

Heres a top fund manager commentating on it.................

Allsopp told Citywire: "Accuma is a perfect play on consumer debt and the softness of the high street. It will exhibit enormous growth going forward and is cheaper than bigger rivals like Debt Free Direct."

Heres what the company does..........................

The Group is a provider of tailored financial solutions and advice to
individuals who are experiencing debt problems. The Group's principal aim is to
help individuals regain control of their financial affairs by advising them on
the most appropriate course of action based on their individual circumstances.
The Group is highly regulated as its key product, an IVA, is a legally binding,
court-approved agreement and can only be administered by Insolvency
Practitioners (IPs) - individuals licensed under the Insolvency Act 1986 to
undertake insolvency appointments.

The Group's operations comprise a personal insolvency practice specialising in
IVAs, general debt advice and the referral of individuals to other solution
providers where appropriate. The Group does not lend money, nor does it take
clients' debt on to the balance sheet, thereby limiting its business risk. The
solutions offered to individuals depend upon personal circumstances and
principally comprise the following:

Individual Voluntary Arrangement (IVA)

IVAs were introduced as part of the Insolvency Act of 1986 as an alternative to
bankruptcy, enabling individuals who were struggling with unsecured debt
payments to reach a legally binding compromise with their creditors. Penetration
of IVAs has historically been low due to the limited number of providers, cost
to the consumer and perceived complexity.

The Directors believe that this gives the Group an opportunity to build critical
mass and create barriers to entry in a relatively short timescale.

An IVA is a legally binding, court-approved agreement between the individual and
his/her creditors, under which the individual agrees to make fixed monthly
payments, generally over a five-year period.

IVAs must be supervised by an IP and have many advantages for both the debtor
and creditors. The debtor avoids bankruptcy which can be of particular
importance for home owners or those employed in occupations where bankruptcy
would be highly disadvantageous. The IVA conveys a legal obligation on the
creditors to freeze all interest and charges and, subject to adherence of the
terms by the debtor, to write off any outstanding debts after expiration of the
fixed period. An IVA therefore provides both certainty to and reduced pressure
on the individual.

From the creditors' side, the attractiveness of an IVA is the ability to
forecast a higher return than in bankruptcy combined with lower administrative
costs compared to traditional debt collection. This is driven by a legal
obligation on the part of the debtor to make fixed monthly payments, or to
introduce other funds, which have been assessed by Accuma Insolvency
Practitioners (AIP), one of the Group's trading subsidiaries, as being
affordable and sustainable.

AIP does not directly charge the debtor a fee for its services; these are
received as a priority from the contributions made by the debtor into the IVA
and are agreed and funded by the creditors. AIP charges the creditor an initial
fee of 2,500 - 3,000 as well as an average 78 monthly supervisory fee which
over the five-year period gives good cash-flow visibility. Where AIP believes an
IVA is inappropriate the following solutions will be recommended:

Informal Arrangement

AIP advises on two types of informal arrangement, managed and self-managed,
under which creditors agree to extend the repayment period for the individual.
This is not a legally binding agreement and often interest and charges continue
to be applied until the individual has repaid the amount in full. Under the
managed scheme, AIP refers individuals to a non-connected company which manages
the scheme between individual and creditor.

Re-mortgage

This solution is usually suitable for homeowners with positive equity in their
property. This has until recently been a particularly strong area of activity in
the UK with individuals re-mortgaging to consolidate high interest credit,
taking advantage of lower mortgage interest rates and the high perceived value
of their property. AIP refers such individuals to professional finance brokers
and receives a percentage of any commission payable to the finance broker.

Consolidation Loans

This is a highly competitive area of the market where individuals take out a new
loan to repay existing unsecured debts. AIP recommends professional finance
brokers and would usually receive a percentage of any commission generated.

Bankruptcy

If an individual is made bankrupt, a trustee is appointed to manage their
financial affairs and to sell any assets that may exist in order to repay their
debts. Accuma does not directly advertise or promote bankruptcy as a solution.
However, as the Group aims to provide a full range of solutions, if bankruptcy
is deemed the most appropriate option, the individual is provided with free
information detailing the actions to be undertaken. ENDS.

Well worth a punt in these markets as a defensive play.

DYOR.

cheers GF.

Ill have a look MP, many thanks.

Cheers GF.

Lifted from This Is Money....



Debt crunch will help the experts



Brian O'Connor, Daily Mail
16 May 2005

SELL in May and go away? Suddenly the market mood is fragile. The Footsie, which began the year at 4814 and hit 5060 in February, has fallen back to be barely 1% ahead this year. Retail gloom is deepening and so too are fears of a severe economic slowdown.


Speculative stocks, from mining to technology, have seen a sharp cull. A glut of new share issues is giving big investors indigestion.





Debt and derivative markets are worrying. Ordinary investors know little of credit default swaps and collateralised debt obligations. Whether regulators know more remains to be seen. When these markets go wrong, they trigger forced selling of bonds and shares.





Not all the signals are at red. Public spending is keeping some sectors buoyant. The next move in interest rates may be down, not up. The nation's debtors certainly hope so. Debt is one business that is booming. This is good news for specialist debt advisers.





Even MPs can go bust, as Neil Hamilton found when Harrods owner Mohamed Al Fayed sued him for 3m legal costs. Personal bankruptcies rose 26% to more than 13,000 in the quarter to March. Experts expect more than 50,000 this year. Individual voluntary arrangements (IVAs) with creditors are rising at 40% a year.





That is good news for Andrew Redmond, Paul Latham and John Reynard, who until four years ago were partners at Lancashire accounting firm Lathams. The firm was being sold, and the trio decided to buy out its debt management side. Eighteen months later they floated it on the Alternative Investment Market (Aim) as Debt Free Direct, which helps people to remortgage, consolidate their debt or negotiate an IVA.





This means debtors agree to pay a monthly sum for five years, based on a realistic assessment of what they can afford. A typical deal covers debts of 20,000. DFD gets a fee of at least 2,500 up front, plus monthly fees worth up to a further 4,500.





Canny fund managers like New Star's Patrick Evershed think firms such as DFD are well placed in a downturn. It is now processing close to 250 IVAs a month. Its broker, Teather & Greenwood, reckons this should generate operating profits of 8m a year.





But the shares have already been chased up to 157p, valuing DFD at 57m. That looks pricey against current profits, which Teather's Martin Cross expects to quadruple to 1.8m in the year just ended. DFD is selling at nearly 40 times these earnings. This high rating reflects the attractive prospects.





Rival Accuma looks cheap by comparison. Floated in March at 82p, it rose to 124p but is now 96p, valuing it at 19m. Chief executive Charles Howson, 38, used to run debt management firm Baines and Ernst. He owns more than 50% of the group.





Accuma's broker Daniel Stewart expects earnings per share to double from 5.7p in the year to July 2006 to 11.8p in 2006-2007. The shares sell at under eight times those earnings.


There are risks. Advertising for business is costly, and there is competition from the accounting giants. Profiting from human misery is tricky, though these firms claim to save you from a fate worse than debt. The biggest setback would be a sudden easing in borrowing problems. But with personal debt topping 1,000bn, that looks unlikely.

cheers GF.

PS, a swap from DFD to ACG could be well timed at the moment.

Invesco star Woodford points to consumer slowdown

Published: 11:18 Wednesday 18 May 2005 By: Laurence Fletcher, Funds Correspondent

Woodford, manager of the Invesco Perpetual Income (INVESCO PERPETUAL Income Inc) and High Income (INVESCO PERPETUAL High Income Inc) funds, has long been concerned about UK consumer spending, and now points out that the situation has deteriorated markedly in recent weeks.

He said: 'The past six weeks have been characterised by a notable deterioration in the consumer economy, suggesting, amongst other things, that higher interest rates are beginning to bite. At over 1 trillion, UK household debt is running at record levels, accounting for 75% of all consumer debt in Europe, and it now seems that consumers are beginning to moderate their appetite for borrowing.'

Woodford believes that consumer confidence is falling due to the effects of higher interest payments, utility bills, council tax payments and energy costs on disposable incomes. 'This is forcing many consumers to cut back on big-ticket items and non-essential purchases,' he said, pointing to recent negative trading statements from retailers.

'All of this is coming at a time when the Bank of England has just trimmed its own growth forecasts, and when the UK economy is facing other significant headwinds. The UK government, which has been a key driver of the economy in recent years due to strong growth in government spending, may well be unable to sustain present levels of expenditure without raising taxes. A slowdown in the global economy and sluggish growth in neighbouring Europe also add external pressure on top of these domestic challenges.

'It is too early to tell if the recent batch of weak economic data marks a change of fortunes for the overall UK economy, but it does seem to point to a much tougher environment for retailers and consumers alike.'

Woodford's funds continue to have a more defensive bias, with positions in stocks such as British American Tobacco, National Grid, Imperial Tobacco, BT Group and United Utilities.

Over the past five years the Invesco Perpetual High Income fund has risen 68.7%, beating an average 15.2% gain among funds in the UK Equity Income sector and a 7.2% decline in the FTSE All Share index.

cheers GF.

Price down on more buys than sells. Ah well Ive got a very bullish Broker note coming.

cheers GF.

From Daniel Stewart Brokers BUY...............


Morning Brief Accuma Group 11 May 2005 ACG BUY

Recent price weakness gives strong buying opportunity We view the recent share price decline driven by weakness in the wider equity markets and an absence of company-specific newsflow as a strong buying opportunity. We anticipate that strong growth in the underlying IVA sector is benefiting the business and would expect a re-rating of the stock in the short term. Accuma has a July year-end. Poor macro-economic indicators favour the business It would be hard to miss the widely reported reduction in consumer spending, driven by a slowdown in the housing market and higher interest rates, which are causing pain to numerous over-indebted consumers as well as higher levels of jobless claims. This is being witnessed not least in gloomy trading updates amongst retailers such as Matalan and HMV, with retail sales figures released yesterday showing the biggest decline for April in over a decade, but also in personal insolvencies, which rose in Q4 2004 by almost 35% y-o-y. Q1 of 2005 showed a 20% increase in court orders against people who were unable to fulfil their mortgage payments. Moreover, we expect further pain. A recent slowdown in UK manufacturing may lead to more job losses and 100bn of fixed rate mortgages agreed in 2003 are due for refinancing at presently higher interest rates. IVAs are a dual win solution IVAs offer the consumer a legally binding, finite and manageable repayment schedule with no risk (subject to adherence to payments) of losing ones home. Fees are borne by creditors. From Accumas viewpoint, IVAs offer good revenue and cash flow visibilityand are highly profitable. Accumas business model is low risk as it does not lend money nor expose its balance sheet to client debt. The success of IVAs can be seen in the 41% increase in case numbers in the UK during 2004. Valuation At the current price Accuma trades on a prospective P/e of 14x to July 2006, falling to 6.8x for July 2007. This is based on a weighted EPS of 5.7p to July 2006, rising to 11.8p (+108%) for 2007. By way of contrast, Debt Free Direct (DFD.L) trades on a prospective P/e of 24.3x to April 2006, falling to 20.3x to April 2007. This is based on a weighted EPS of 6.5p (+66%) to April 2006, rising to 8.0p (+24%) for 2007. Daniel Stewart & Co acts as Broker and Nominated Advisor to Accuma Group.

cheers GF.

Well the buys are certainly coming in now.

cheers GF.

Suprised more arent in this one as I expect it to take off all at once.

cheers GF.

Im following this with interest GF,, but im a bit jittery to go in to anything new at present..JB..

Been away from the markets for a while, and the situation doesnt look much brighter than when I left off. This one looks great GF but I cant see myself buying anything at the mo. It does seem to have been hit by the slump like everything else but as soon as things brighten up a bit I think I'll be in.

Quite a bit of interest on other boards. Way cheaper than Debt Free Direct.

cheers GF.

Well its certainly moving now and theres a lot more to come, better get in before the herd.

cheers GF.

With you all the way gf.
Another good call.
Regards

Cheers Porky, its taken a few days to move but it looks like somone must have tipped it this morning.

cheers GF.

And the Buys continue to come in. NICE.

cheers GF.

And up she goes again. Really is a time to get on board before the advfn vultures.

cheers GF.

And we have more buyers.

cheers GF.

Another good call GF. Not in yet but watching.

MS

Yup MS, we got a late T seller and the buyers mopped up all his sell so I see no problems from the off tomorrow. Well worth having a look earlier in the thread re- to the valuation of this one and Debt Free Direct (its on the brokers note), its way cheaper and I think we have investors moving over from them.

cheers GF.

Just take their word that this is an excelent company.

We owed a fortune, over 22,000. Wed tried everything
and didnt know what else to do. Then we called Accuma.

They reduced our monthly payments from 900 to under
300, arranged for nearly 10,000 of our debt to be written
off. Stopped all interest and charges, and best of all, it
didnt cost us a penny. The service was free. Now weve
got our lives back!.


cheers GF

Go on take the plunge now or itl be you who needs this companys services.

cheers GF.