Acquisition of Relax Assets

RNS Number : 5589D
Cleardebt Group PLC
03 December 2009


ClearDebt Group Plc ("Cleardebt" or "the Company")


ClearDebt is pleased to announce that it has today acquired certain assets of Relax Group plc (in administration).


Highlights


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ClearDebt has acquired IVAs, Protected Trust Deeds and Debt Management Plans from certain Relax Group subsidiaries

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Assets acquired: approximately 2,400 IVAs, 1,300 PTDs and 2,800 DMPs


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ClearDebt to pay total consideration of 2.7m


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Net acquisition costs to ClearDebt of 3.1m



ClearDebt has acquired from the administrator (Jonathan Elman Avery-Gee) part of the businesses and assets of four subsidiaries of Relax Group plc (in administration), namely approximately 6,500 Individual Voluntary Arrangements (IVAs), Protected Trust Deeds and Debt Management Plans.


The total consideration of 2.7m is being paid in cash from the Company's own resources and existing facilities. The Directors believe that the book value of the assets acquired were recorded in Relax's last published accounts at a value of about 6.256m and as such the total consideration is equivalent to approximately 40 per cent of that value. The board of ClearDebt see this acquisition as the opportunity to expand its operations in the growing IVA and debt management sector and, as such, although the Company anticipates the collection of debts/fees from the IVAs, PTDs and DMPs going forwards, it does not intend to attribute such a high book value to those assets in its accounts.


The acquisition takes place after a number of parties expressed interest in the business.


ClearDebt's CEO, David Mond, said:


"The acquisition of these assets should provide strong, predictable additional cashflow for the group and our lean administration means we are very confident we will manage these cases effectively and at a higher margin than Relax found possible"

03 December 2009 @ 03:31 pm BST
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ClearDebt has acquired part of the businesses and assets of four subsidiaries of Relax Group which is in administration.

ClearDebt said it had acquired approximately 6,500 individual voluntary arrangements, protected trust deeds and debt management plans for 2.7m.

The directors believe the book value of the assets acquired were recorded in Relax's last published accounts at a value of about 6.256m and as such the total consideration is equivalent to approximately 40% of that value.