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.

Absolutely NO COMMENT from the hoi polloi out there concerning the thought provoking statement issued by DFD this day. 865000 near to or contemplating bakruptcy. How many idiots can this country produce (after all, they should all be learning FAST fron their idiot Government - capable of wasting more money than all rest of the populace put together) But WAIT, there is a company out there dedicated not only to helping the idiots but MAKING MONEY FOR YOU WHILST DOING SO. Maybe the final irony could be that, for a peppercorn rent, our beloved Socialist Governmento should permit DFD to operate from down Greenwich way - where there is a MONUMENT to Government conservation of the public's money.

Thanks sandrew64.

So...tell me guys, what happened to our sp this week. You'd think with the trading update we've had the sp would be at 110-115p and there would be some very positive press coverage or at the very least a mention. DFD themselves admitted to recruitment problems caused by the volume of business. Why are we the only ones to spot the potential in this share???

I'm not too sure. There may be a hint of optimism in the air that interest rates have peaked meaning that perhaps not as many people will be finding themselves in debt as was first thought. On the other hand, if rates remain flat or are even lowered the Great British public will hit the streets, spend on their cards and leave the figure of 1 trillion debt in their wake. Personally I think it's a quality operation providing a service at the right time. Let's hope 115p and more is achieved by Xmas.

Nice bump up again today...this is more like it! Realistically what are we looking at by Christmas....any ideas? Any chance 130p or will this go down when the directors start selling off their holdings as Shares mag said would be happening(Dec. I think was quoted)to enable institutions to buy.

Still looking good. Starting to get excited now...which is a sure sign that it will drop tomorrow!!

I was wrong - excellent! Good write-up in Shares today as well. Any thoughts on SP by Christmas?

Don't know what to think....thought it was going to be an early Xmas at one point today. Surely this has got to slow down and consolidate for a bit.....hasn't it??!! I'm not good at charts and ratios and whatnots, so no help there......who knows ...at the rate this is going....160p+ doesn't look unreasonable.

I asked my friends on the ASC website,many who are very good on the technical analysis side ,for opinions and comments on the future of this sp. Got some interesting responses. The responses are posted on that thread.(ASC)

Thanks, I also have a (very) small holding in ASC but certainly not enough to contribute on that thread compared with the 20-50% heavy hitters (like yourself!) 160p would be lovely and very welcome for the festive season!

Let's hope it's not just an optimists' dream!!

Sandra: I do hope by now that you have had a chance to look at the comment's about this company on the WatsHot site. Meanwhile from a Charting perspective the share is looking a little overbought at current levels. We need to see how far this pullback goes really before plotting projections. It certainly broke out of its trendlines at the 105 level, but the RSI started showing some divergence on Friday last and the MACD is flattening out a little now. Having said that the SP is still very much in a bullish phase and has stayed above it's 50day m.a. for some time, and that takes some doing. If I was pushed I would be inclined to take some profits right now, and watch. Will get back to you on possible SP levels as week develops. Hope that helps and that my comments have not upset anyone. John

Seem to be pretty accurate John - bad day at the office today.

hi goldfinger
like the look of this one
took an interest recently
directors bought 700,000 shares in 1st quarter 04, 60 - 65p
nice uplift already standing now 119p - obviously knew somthing
forcasting 2m profit to march 05 rising to 3m next
will watch for news flow around xmas


keep in touch

regards HUSTLER

He sold months ago , read previous posts.

Any ideas when the main shareholders are cutting back their holdings, I expected an announcement regarding the sell off before now and took my profits out expecting the sp to dip back a bit. Oops!

http://DFD

Think 15th December mentioned somewhere but can't now remember where I read it. I'm still in.

Me too. A nice little rise in time for Chrimbo but more in the New Year would be good!

Let's see what tomorrow brings...I am still in, kept the original holding and looking to top up when possible.

What's happening here!?!