Well from what Ive heard and seen over the last two years its seems everybody has gone barmy borrowing as much money as possible. It seems the days when people used to save for a rainy day are far gone and the buzzword is now 'have you got a credit card'.
Nearlly everday I get a leaflet or letter through my door asking me if I want to borrow such and such for a new car or a house extension etc.
Leading Banks say we have never been a bigger country of borrowers, they estimate borrowing has gone up between 14% and 17% on an anualised basis this year alone, bang on all the existing debt outstanding and we could have OVERLOAD. And this will be further compounded with interest rate rises which I feel sure we will see later this year and going into next year.

Step forward Debt Free Direct, the provide a service that allows people to to get their finances back on track while still repaying their creditors far more than if the debts were passed to personal factoring and debt management companies.

Heres a summary of what services the company provide.....


Debt Free Direct helps individuals find the best solution to their debt
problems, based upon an analysis of their particular financial circumstances.
Financial information on an individual is processed through a computer model
(the Best Advice Model) developed by Debt Free Direct in order to recommend a
solution suitable for that individual's particular financial circumstances. The
solutions offered range from basic advice, such as simply destroying credit
cards and curbing unnecessary expenditure, to the following solutions:

* consolidation loan
* re-mortgage
* informal arrangement
* individual voluntary arrangement (IVA)
* bankruptcy

Debt Free Direct has a distinct position in the marketplace in that unlike most
of its competitors who sell specific products, Debt Free Direct looks to provide
the best advice to the consumer and recommends to them the most appropriate
service.

Debt Free Direct is based in Chorley, Lancashire and was admitted to AIM in
December, 2002.

The company have a strict sifting proceedure through the Best Advise Model and only about 33% of applicants get through therefore eliminating risk to the company.

Profit and Loss summary below


CONSOLIDATED PROFIT AND LOSS ACCOUNT

PERIOD FROM 26 APRIL 2002 TO 30 APRIL 2003


Period from
26 Apr 02 to
30 Apr 03


TURNOVER 1,058,248
Cost of sales (738,877)
_________
GROSS PROFIT 319,371
Administrative expenses
Goodwill amortisation (126,641)
Other administrative expenses (288,041)
_______
(414,682)
_________

(95,311)
OPERATING LOSS

Interest receivable 963
Interest payable and similar charges (80,443)
_________

LOSS ON ORDINARY ACTIVITIES BEFORE AND AFTER
TAXATION (174,791)

Tax on loss on ordinary activities 59,941
_________

LOSS FOR THE FINANCIAL PERIOD (114,850)
=========
Loss per share - basic and diluted (1.28p)

The balance sheet looks sound for a company in its infancy and its business model.


CONSOLIDATED BALANCE SHEET

AS AT 30 APRIL 2003

FIXED ASSETS


Intangible assets 2,791,424
Tangible assets 211,349
_________

3,002,773
CURRENT ASSETS
Debtors 1,254,124
Cash at bank 81,249
_________
1,335,373

CREDITORS: Amounts falling due within one
year (1,672,471)
_________
NET CURRENT LIABILITIES (337,098)
_________

TOTAL ASSETS LESS CURRENT LIABILITIES 2,665,675

CREDITORS: Amounts falling due after more than
one year (168,392)

PROVISION FOR LIABILTIES AND CHARGES (1,987,98)
_________

509,296
=========


CAPITAL AND RESERVES
Called-up equity share capital 225,000
Share premium account 399,146
Profit and loss account (114,850)
_________

SHAREHOLDERS' FUNDS 509,296
=========

In a business model like this you are going to get a big percentage of Intangibles.


The Business Plan Going Forward.

The model is based upon continuing to take a share of the existing market and
all our budgets and forecasts have been made upon that assumption. However
there is the potential for accelerated growth if the market, or our share of it,
increases. We believe that we are living through a period of quite exceptional
levels of:-

• high employment;
• low inflation;
• low interest rates; and
• rising house prices.

The above have dynamically combined and resulted in ever increasing record
levels of secured and unsecured debt. This is increasingly being used to fund
expenditure in excess of income. Essentially, too many people are living beyond
their means and are funding the gap with secured and unsecured debt.

At this time most people can afford the repayments on increased debt because the
interest they pay, notably on their mortgage, has been falling.

However the economic factors outlined above will not last indefinitely. We
believe that the time will arrive when interest rates will rise and this will
impact on the existing delicate economic balance prompting a vicious circle
resulting in ever increasing numbers of over-indebted people requiring our help.

We are confident that we are well placed to help them and that our business will
continue to grow even more rapidly in the years ahead.

Our purpose

Briefly our purpose is to:-

• provide the best advice to every over-indebted person who calls us;
and
• be the leading provider of advice and appropriate financial solutions
to over-indebted consumers with particular focus on the 'quality
sector'.

The 'quality sector'

Essentially these are generally responsible, mature people who through
unforeseen life events have become unable to pay their bills on time. This is a
situation that they do not like and they are 'the unfortunates' in what is often
perceived as an irresponsible market.

These are people, who having been pointed in the right direction will stick to
the most appropriate solution found for them and will become good customers for
us.

Building shareholder value

To continue to build shareholder value we will:

• target the appropriate market sector;
• provide the appropriate advice to a high technical and ethical
standard;
• provide appropriate empathy to their difficulties; and
• use the law and the regulatory framework which is appropriate for
their benefit.

In other words, shareholder value will be derived by doing what is right and
appropriate for all of our customers in every circumstance.

Debt Free Direct is different

We offer free, impartial, best advice to every caller........without exception.

Best advice is systematically delivered through a sophisticated computer advice
model. This has been independently recognised as an industry leader.

Furthermore, in a largely unregulated market our business operations are highly
regulated; something which we welcome. We provide advice in all financial areas
to include the most formal, legal insolvency processes and we employ highly
qualified Licensed Insolvency Practitioners whose advice and working practices
are monitored and regulated by the appropriate authorities,

We believe that this is a market which is ripe for increased regulation in the
future and we will positively welcome that when it happens.

We are encouraged to see that others share our view as highlighted by the OFT
guidelines issued to debt management companies and the recently announced
investigation into consolidation loans. Any increased regulations resulting
from these or any other government initiatives can only strengthen our position
in the marketplace.

We will particularly benefit as others struggle to embrace the cultural change
required from higher regulatory standards imposed upon them.

A Redmond
Chief Executive Officer

And finally the company have recently placed 3.85 million of new shares ahead of costs to partly fund a TV Campaign going up towards the xmas spending spree on Satelite and Terrestial TV. 1.5 million will go on advertising and to increase its Call Centre Capacity.

I rate the shares a long term Investment but there could be some interesting times ahead.

Please DYOR.

GF.

A policing body for the controversial IVA industry will be formally launched next month in a move likely to put further pressure on profits of companies in the sector

The gloss gets further taken off? Might be time to leave this sector after a good run over 2-3 years?

This is a killer...all profits erased within 2 days.

I sold on friday and was worried all weekend that I had been trigger happy, not now

rob

u r very lucky, rob

The ridiculous wording of the trading update after hours on Friday has taken it's toll. Interesting to note that the update from DETS this morning has been received much more favourably.

Ian

Debt Free Direct warns meeting 2006-07 market forecasts will be 'challenging'
AFX


LONDON (AFX) - Debt Free Direct Group PLC (DFD) has warned that meeting market forecasts for full-year 2006-07 will be 'challenging' due to increased advertising by rivals and comments by creditors.

DFD said it had brought forward its third quarter trading statement after the badly received update by Accuma Group earlier today.

However, DFD said it believes that market expectations for 2007-08 are 'entirely realistic.'

DFD said its advertising performance in November and December showed signs of reduced response rates and January has been weaker than expected, results it put down to 'a dramatic increase in competitor advertising.'

The group has subsequently increased advertising spend to maintain volumes, 'albeit at a higher cost of acquisition.'

However, given the lead time in placing advertising, DFD said it will not be possible to place sufficient advertising to maintain the forecast call volumes in February.

DFD also said that creditor comment in recent months has impacted on confidence in the valuation of IVA stocks, adding that changing creditor criteria for acceptance of an IVA is casing cases to fail earlier in the process.

DFD forecast relations with creditors improving in the future.

newsdesk@afxnews.com

Substitute "terrible" for "challenging"

Looks like DFD is going back to 400p soon...

You sure, hlyeo98?

Big damage done now

Debt Free Direct Group PLC
06 March 2007


6 March 2007


DEBT FREE DIRECT GROUP PLC

TRADING UPDATE



Debt Free Direct Group (DFD), the leading debt advice and solutions company,
today provides a trading update.

In our recent trading update, dated 26 January 2007, we highlighted our
expectation that the final quarter of FY07 would be challenging, which might
make achieving market expectations difficult. We are now in a position to
quantify the impact on profits in FY07 of increased advertising costs and lower
call volumes, together with creditor concerns.

Our confidence in achieving market expectations for FY08 remains unchanged.

Advertising performance

The deterioration in advertising performance continued in February 2007. It is
not yet clear whether this was a result of:

- increased competitor advertising, or

- lower consumer confidence in the IVA solution arising from the tone of press
reporting generated by ongoing creditor concerns

With regard to competitor advertising, we have been encouraged by the
Advertising Standards Authority response to the highlighting of misleading and
untruthful IVA adverts. As a consequence, in the longer term we anticipate that
the IVA advertising market will not remain as competitive as it is currently.

New lead generation source

Notwithstanding the above, as part of its continuing strategy to reduce
acquisition costs, DFD has entered into a 2 year agreement with an established
money advice organisation for the exclusive generation of leads. Those leads
will cover the complete range of debt solutions (including IVAs, DMPs, Trust
Deeds, mortgages and loans). This business is currently generating significant
numbers of leads per month (around 10% of DFD's existing volumes) and
anticipates further growth over the period of the agreement. Whilst this
arrangement will have little impact on the current financial year, it will
benefit future periods significantly.

New IVA case generation

We now anticipate new case numbers for March and April being around 600 new IVA
cases per month (counting joint cases = 1).


Overall DFD Group

Debt Free Direct has made significant progress in FY07. Market expectations for
FY07 were originally at 8 million (adjusted PBT) and were subsequently upgraded
twice, with the consensus moving to adjusted PBT of 11 million.

Since our trading update in January 2007, the consensus has been revised.
However, we believe that the outcome for FY07 will be approximately 10-15% below
the current market consensus range (9.7 million to 10.3 million adjusted PBT).

Looking ahead, whilst we may be impacted by higher advertising costs (and lower
response rates), the beneficial impact of the new lead source and the increase
in our non IVA revenue per call mean that advertising cost per IVA can increase
significantly without impacting overall profitability. As a consequence, our
confidence in achieving market expectations for FY08 remains unchanged.

Enquiries:

Debt Free Direct Group plc
Andrew Redmond, Chief Executive Officer 0845 296 0100
Paul Latham, Finance Director 0845 296 0200

Numis Securities
Iain McDonald 020 7776 1500
Lee Aston

Financial Dynamics
Ed Gascoigne-Pees 020 7269 7132
Nick Henderson 020 7269 7114


Notes

Debt Free Direct helps individuals find the best solution to their debt
problems, based upon an analysis of their particular financial circumstances.
Financial information on an individual is processed through a computer model
(the Best Advice Model) developed by Debt Free Direct in order to recommend a
solution suitable for that individual's particular financial circumstances. The
solutions offered range from basic advice, such as simply destroying credit
cards and curbing unnecessary expenditure, to the following solutions:

consolidation loan
re-mortgage
informal arrangement
individual voluntary arrangement (IVA)
bankruptcy

Debt Free Direct is unique in the marketplace in that, unlike most of its
competitors who sell specific products, Debt Free Direct looks to provide the
best advice to the consumer and recommends them the most appropriate service.

Debt Free Direct is based in Chorley, Lancashire, and was admitted to AIM in
December 2002

Dow plunges 387 on subprime concerns - AFX


NEW YORK (AP) - Wall Street plunged again Thursday after a French bank said it was freezing three funds that invested in U.S. subprime mortgages because it was unable to properly value their assets. The Dow Jones industrials extended its series of triple-digit swings, this time falling more than 380 points.

The announcement by BNP Paribas raised the specter of a widening impact of U.S. credit market problems. The idea that anyone -- institutions, investors, companies, individuals -- can't get money when they need it unnerved a stock market that has suffered through weeks of volatility triggered by concerns about tight credit and bad subprime mortgages.

A move by the European Central Bank to provide more cash to money markets intensified Wall Street's angst. Although the bank's loan of more than $130 billion in overnight funds to banks at a low rate of 4 percent was intended to calm investors, Wall Street saw it as confirmation of the credit markets' problems. It was the ECB's biggest injection ever.

The Federal Reserve added a larger-than-normal $24 billion in temporary reserves to the U.S. banking system.

The concerns that arose in Europe and spilled onto Wall Street underscored the potential worldwide ramifications of an implosion of some subprime loans and perhaps also weakened arguments that strength in the global economy could help keep profit growth going in the U.S. among large companies that do business overseas.

The ECB's injection of money into the system is an unprecedented move, said Joseph V. Battipaglia, chief investment officer at Ryan Beck & Co., adding that it shows that problems in subprime lending are, in fact, spilling into the general economy.

Fairpoint sees FY charge of 500,000 stg on sale of Australian business UPDATE
AFX

(adds analyst comment; background on Fairpoint)

LONDON (Thomson Financial) - Debt Adviser Fairpoint Group PLC, formerly known as Debt Free Direct, said it sees a full-year charge of 500,000 stg due to the disposal of its Australian business saying it would have remained cash negative throughout 2008 and would not have generated significant profit for several years.

The company, in a trading update, said it has secured a five-year revolving credit facility of 16 mln stg to replace existing funding and provide additional funds.

Fairpoint sees FY charge of 500,000 stg on sale of Australian business UPDATE
AFX

(adds analyst comment; background on Fairpoint)

LONDON (Thomson Financial) - Debt Adviser Fairpoint Group PLC, formerly known as Debt Free Direct, said it sees a full-year charge of 500,000 stg due to the disposal of its Australian business saying it would have remained cash negative throughout 2008 and would not have generated significant profit for several years.

The company, in a trading update, said it has secured a five-year revolving credit facility of 16 mln stg to replace existing funding and provide additional funds.