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.

A corker of a day here.

cheers GF.

Yup ,looks like were on the heels of DFD.

And a lot more to come Pad.

cheers GF.

Bombing along again.

cheers GF.

Great write up in the MAIL today in finance section - quote 'these shares have further to go' - looks good for more on Monday guys and galls - while you are at it sniff the aroma of COH - coffee retail is another emerging market place - especially in the old eastern block countries - a well set up company about to take off big imho - dyor - AG

And here is that tip update from this morning's Mail...

Accuma Scales Heights Of Our Debt Mountain

Daily Mail Investment Extra by Brian O'Connor - Sat 28/01/06

When Charles Howson bought into debt advice firm Accuma in August 2003, it had just four staff. Now it has 129 and its swish new offices in Manchester's City Tower have room for 300.

The debt business is booming and Accuma is racing to keep up with demand. It helps borrowers into an Individual Voluntary Arrangement (IVA) - a five year debt work-out which, if it works properly, should enable them to keep their job and home and to start afresh.

Typically, someone owing 45,000 might pay back 400 a month over five years, a total of 24,000, with creditors agreeing to write off the rest.

Sadly, more and more people are getting into difficulty. Helplines were swamped after Christmas. The total IVAs registered last year may be double the 2004 figure of 10,752 - November alone saw 2,500.

UK consumers' debt tops 1,100bn, of which 56bn is costly credit card debt.

The shares, 90p when tipped here in May, have raced to 227p. City funds snapped up this week's placing at 200p, raising 4.75m for Accuma and 5.7m for Howson, who cut his stake to 28.5%. He says he sold because funds were clamouring for stock.

It is easy to see why. Accuma's broker Daniel Stewart expects pre-tax profits to soar from 2m in 2006 to 5.5m in 2007, doubling earnings from 7.7p to 15.4p. If it delivers, the shares drop from a steep 29 times 2006 earnings to 14.8 times for the following year.

Rival Debt Free Direct, tipped in September at 195p, is now 309p and on an even higher rating. Sceptics say taking IVA fees up front makes profits vulnerable in a slowdown.

In a typical IVA, Accuma takes a 2,800 set up fee from the lenders (nothing from the borrower), plus a management fee of 1,000 a year, spread over five years.

It books the 2,800 as profit once the IVA is agreed, though it may not collect the cash for nine months. Howson says it must account this way because of tax rules. If new business grinds to a halt, then like any growth stock, the shares could be hit.

So if you think UK consumers' debt problems are likely to disappear, stay away. Sadly that does not seem in the least likely. The shares have further to go.

Got in before me CB.

Excelent read.

cheers GF.

Bombing along, surely thats a new high?.

cheers GF.

Fantastic day.

cheers GF.

Tipped again in IC last week

Anyone have the IC article?

cheers GF.

".....There's scope for furthur gains though .At 221p,still a buy."Rgds Mad Pad.

Also tipped elsewhere along the lines of"if you think debt in this country is going to fall don't buy this share".Says it all really.Onwards and upwards Mad Pad.

Volatile little devil isnt it.

cheers GF.

Back in the blue.... Nice.

Cheers GF.

One thats up today. Must be a new high.

cheers GF.

Back to winning ways today.... NICE.

cheers GF.

Scorching ahead today.

cheers GF.

Finished the day well.

cheers GF.

On a surge again this morning. took a few profits earlier but Im still in for the long run.

cheers GF.