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.

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!?!

I don't know but I like it!

Merry Christmas sandrew64 and a prosperous and Debt Free Direct New Year!!

Sorry queen1 been away for holidays and just found your message. Hope you had a lovely Christmas and saw the new year in, in fine style.
Aren't we due some results this month? Do we get a Christmas trading update as well?!?

Lucky you! Anywhere nice (daft question I know but a conversation piece nevertheless...)

Christmas was good thanks as was the DFD SP until today - worrying slide ahead of results or just profit takers following the large rises?

Only to Wiltshire visiting friends.Interesting today....buys(and some rather healthy sized ones at that)outweighing sells,yet the price pluments.Profit takers I hope.

Me too. Good to have you back on board. Looking forward to trading e-mails with you as the SP races towards 2!!!

Bad day all round. Are you in BNH and PDX as well? Triple ouch!!!ASC quadruple ouch!!! Can I start the new year over again please?

ps Whatever you do never,ever connect to tesco broadband. Words absolutely fail me as to how useless it is. Constantly disconnects you .....just what you need with a spreadbet on the dow....quintuple ouch....I think I'll go to bed with a bottle of scotch now.....

Oh dear - much ouching happening in the sandrew64 household yesterday! I hope that today is smoother and less painful. Am not in BNH or PDX but am in ASC which seems to have retrenched somewhat too. Perhaps if more people spent the cash that they haven't got on the ASOS site, they'd need the help of DFD to see them right again. Is this a bad thought from me? If so that's one resolution up the spout and it's only the 5th!

Back today with a happier outlook.....so far so good! I expect ASC is hit due to the poor NXT results, could be a good buying opportunity? By the way, like the thought...it works for me!

Well that's a relief - perhaps I'm not the heartless swine that I thought I was!

Rather nasty slide this morning.

Guys what the heck is going on here? This stock was my Darling !!!, but im not too sure now.

It seems to me the investors know there is going to be good news coming out next week so they ve all pocketed the profits causing the big slide with the view of buying them back later at a cheap price when the news is out causing the share price to rise again to prices seen last week.

does anyone have any other ideas.

I'm assuming as all the trades are fairly small, it's a combination of as you suggest scenicroute and other small investors being spooked by the price slipping back. Let's face it, it's not something we see very often with this one. If we are right it's a marvellous buying opportunity and I should think this will be taken advantage of and hopefully the price will rebound at least somewhat by the end of the day.

IMHO,DYOR,etc,etc