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.

WOULD BE REALLY NICE IF WE COULD KEEP THIS A CORDIAL BB AFTER ALL WE ARE HERE FOR THE SAME THING---THE MAKING OF MONEY AND THROWING INSULTS NEVER MADE ANY REALLY PROGRESS, EXCEPT PERHAPS TO THE GUTTER.

HAVE FUN ALL AND LOOSEN UP-

a deserved slapped wrist, albeit that my aim is not to insult but merely to impart some sense and logic ..... and above all, to keep reminding myself to act as i write!

let me have some of your sense and logic on MLR please as this one has me totally baffled--all the signs are goo yet the price falls today. I dont think its falling back to the new issue price, or because of it, as thats too simple an explanation.

By my calculations, based on fundamentals this share should be 1t 18/20p today.

I am a shareholder.

All replies welcomes SAE available if required.

Up 45% so far today, albeit from a low starting point. So what's afoot?

Today providers of IVA's have agreed to cut fees across the industry by 20%. Lenders will now more able to agree IVA packages rather than stall all the providers.

Hi johnstonp,
Can you tell me where you have this inormation from ?
Cheers

hi giggin. sorry for the delay. had to take the wife shopping.
Can be found in the Independent business page 41. "leading providers of IVAs agree to 20% cut in fees"

Pete

hi johnstonp.
thanks for the info
Cheers

Set against the rest of the market, today was indeed a stellar day for Accuma. Let's hope profit takers don't ruin it and that we see a steady rise back towards 1 over the coming months.

about 8% of the shares changed hands today and the market cap is only 9and a half mil. Results not due til Oct. Cash flow is gd with about 6mil in the kitty. If todays new fee reductions produces volumes of business then the profits should be in the region of 2andhalf mil.
Loads of shares held by the board. I hold at a higher price than today and in for the long run. Looking forward to your 1

In what must be an example of one of the worst timed trades in history I bought the day before the shares crashed earlier this year. So I too am hoping for at least 1.

I think Carter and Carter takes some beating.

Keep holding and i'm sure all will be fine queen

You have a point there scottinvestor. Hold I will though :-)

Accuma Group sais it has received a number of approaches for the company and discussions are at an early stage, adding that this may or may not lead to an offer.

The company made the statement following its recent share price movement.

what price if taken over u think?

33-36p but that's purely speculative.