This new float is already doing well and if it follows DFD and ACG in value any investor can look forward to a multibagger. Anyone else interested?

Debts.co.uk plc

Interim Results for the 6 months to 31 January 2007

Debts.co.uk plc is a leading provider of a range of solutions, including IVAs,
debt management programmes, bankruptcy and secured loans or second mortgages, to
over-indebted individuals.


HIGHLIGHTS

* Revenues up 63.3% to 5.0m (3.0m in 2006)

* Gross profit up 60.9% to 3.8m (2.4m in 2006)

* Operating profits up 28.7% to 1.3m (1.0m in 2006)

* EPS up 28.5% to 4.69p (3.65p in 2006)

* Currently processing 1,064 IVAs expected to be completed within the next
8-10 weeks

* Increase in the number of Insolvency Practitioners to six (four at
flotation)

* Infrastructure significantly improved following move to new office
locations in Chesterfield and Borehamwood with operational efficiencies
starting to show which will lead to a stronger performance in the second
half of the year

* Acquisition of Neville Eckley now fully integrated and performing ahead of
expectations

* Debtcare, our debt management business, showing good growth in client
acquisition rate

* Scarlet loans, our secured loan business is performing well and has
recently commenced its own advertising campaign


CHAIRMAN'S STATEMENT

The results for last year were extremely pleasing and the progress of the Group
has continued into the first half of the current year.

The spread of income streams is a key part of our strategy and the Group's
constituent parts have each been trading for some time and are well established
in their own right. The board continues to focus its activities on a range of
products specifically targeted to support over indebted individuals.
Additionally, we will continue to review strategic acquisitions which enhance
our services offering following the successful acquisition of Neville Eckley in
October 2006.

In December 2006, we successfully completed the final phase of our move into
purpose built office accommodation in Chesterfield and Borehamwood. Prior to the
move the Group was significantly restricted in its operations due to the lack of
available space.

Our marketing strategy continues to perform well with a clear focus on the
internet. With the continued growth or acquisition of complementary businesses
we will be able to leverage further our marketing spend and the cost of our
client contact centre in Borehamwood.

The recent steps to bring change to the industry are welcomed and we anticipate
that the uncertainty in the IVA market place will shortly be resolved.

It is through this strategy of diversification and leverage of core skills and
services that the Group will continue to see positive results.

I should like to thank all our staff for their hard work and commitment and we
look forward to the future development of the Group with great confidence.

Bernard Asher

Chairman

Buy on a break out above 120p for a short term profit of up to 25% or so. PE of 12.25 rather is justified by EPS growth of 28% currently.

DEBT is still the best bet in fundies in this sector IMHO, but it would be hard to prove just now. Good pre-close update on Tuesday and up another 6p (3.5%) today I guess in symp with DETS up only 3.5 (3.0%)

Out of the four company's I have followed in this sector, I think DETS and DEBT are the better bet, not alot between them. DFD still seem fully valued and ACG do seem a litle accident prone. All imho.

DETS Down 10p to 117p today due to a profit warning from Accuma whos sp went down about 50%, Accuma always seemed to be the weakest company. But debt.co.uk, DFD and Debtmatters have all recently given out more positive trading statements.

All three company's sp were slightly down today due to Accuma's profit warning.

25th May annouces acquisition of Adie Financial Solutions which is based in Scotland offering Debt Solutions, which is the same area dets operate in. DETS have paid 400,000 in cash which was financed via a 1.63m placing at 1.05, the extra money will be used for continuing expansion etc.

As with all these company's they have raised money via a placing, it would be nice if the private investor could also have a chance of picking up new shares in a rights issue.

But having said that I'm pleased with the direction DETS are heading.

Also on 25th May DETS released a very intersting trading update below.

The Company is pleased to report that trading to date remains up to
expectations. Enquiries continue to grow and conversions across all our
operations are in line with budget. Our long experience and breadth of
operations and solutions continue to offer strength to our income stream as well
as ensuring best advice to debtors.


Despite the negative sentiment expressed in the media towards the sector and
IVAs in particular and the specific problems of some of our competitors we have
not experienced any downturn in this area. Our 3rd quarter showed an increase of
17.2% in IVAs concluded. Similarly our fee levels were firm.


We remain confident that the discussions taking place with lenders under the
umbrella of the Debt Resolution Forum will in the near future produce an
agreement which will be satisfactory to both sides. We have always been fully
supportive of moves to bring greater regulation and transparency to the
industry. It is clear to us as a participant in these discussions that there is
a definite desire on both sides to reach an agreement. There are a large number
of issues, especially procedural, to be resolved but we believe we will be less
impacted than many of our competitors. As the industry changes this will present
further opportunities and we are well placed to take advantage of these.


Overall growth continues and given the prevailing market conditions and our
capabilities we remain very confident of our future prospects.

See below the Broker Seymour Pierce forecast update 25th May 2007.

Rating = Buy

2007 - Profits = 3.81m & EPS = 13.4P
2008 - Profits = 5.71m & EPS = 18.7P

I believe when you way up all of the above, DETS looks more attractive all the time. But please dyor.

Regards