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.

bouncing around a bit this morning but recovering well--glad I joined this wagon!

Hi BB, been in ACG from 91p. Seems to be a profit taking day in general on the market today. Still think theres plenty left in this one though.

Nice to have you on board MP.

cheers GF.

Lets not forget what one of the top leading fund managers had to say for the company back in late May.................


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."

cheers GF.

I agree looks like a bit of profit taking all round. DFD and debtmatters are both down today as well in the sector im tempted to add another tranch if I can free the money tomorrow.

900 up at one point--250 down by the close!! Whew you need nerves of steel with this one or perhaps I need to learn not to be greedy. Anyway happy to hold on as I'm sure this one is only just in the early stages yet.

Early stages indeed MP.

cheers GF.

Bit of a pullback today.

Im gonna top up this morning its just a small retracement due to it having such a run. A tree shake always gets some out, im not moving on this one its going to 2

Im not selling either BB. Just thinking about topping up.

cheers Gf.

Hi Goldfinger had to take profits on this one due to short term cash flow problem. They like they may retrench a bit further for a good buying back opportunity! Good luck il be back in them soon!

Nice doing business with you

very nice bounce back in this one while I've been away--hope it continues.

And off she goes again. Bought into this as I was just jokingly hedging against the gaming sector -- and what a nice little earner it's turning out to be.

anyone know any news? this is a good rise today. keep it up ACG

Lovely. Heading towards a bagger for me and pretty quickly.

Sees ya in about 4 weeks time.

cheers GF.

DFD and DEBT doing well again today. Seems sentiment may have returned to the sector.

After a pull back this one is scaling new highs and looks to have a great future--I'm still holding anyone else still in??

Yup still in even though its a bagger.

And we have more good news. Growth Company Investor have slapped a BUY on it this evening. Here it is.........................................

Sums add up for Accuma - BUY
Companies: ACG
27/09/2005

UK consumers currently owe over 1 trillion between them 185 billion is unsecured borrowing outstanding on credit and store cards, personal loans and overdrafts. Three AIM companies are capitalising on this burgeoning problem by offering an innovative way out of debt to the 42 per cent of people the Bank of England believes are experiencing repayment problems.

An Individual Voluntary Arrangement (IVA) allows a debtor to agree to pay a fixed amount monthly over a certain number of years, normally five, after which the debts will be cleared. This allows him to avoid bankruptcy. Creditors appreciate this tool too, as they are assured of receiving a greater proportion of these debts than under a bankruptcy.

The three AIM-quoted debt advisers that arrange IVAs Debt Free Direct, Debtmatters and Accuma receive a fixed sum for setting up the agreement, paid before the creditors start to receive their repayments, and then a monthly sum to supervise the IVA throughout this period.

All three companies are currently benefiting from the increased popularity of IVAs. Recent figures from the DTI said total insolvencies rose 36.8 per cent in the second quarter compared with the same period a year ago, but numbers of IVAs jumped nearly 70 per cent.

Debt Free Direct has the longest history on AIM. Since joining the market in late 2003, its shares, recommended by Growth Company Investor, have jumped 400 per cent. This happened as turnover doubled to 8.4 million in the year to last April and a first substantial pre-tax profit of 1.5 million was made. The company now has a fifth of the IVA market.

Debtmatters and Accuma are currently smaller but both should experience similar growth as the whole market continues to grow. Debtmatters, with a seven per cent market share, has already seen its shares shoot up 60 per cent from their 65p starting price in June and Accuma has more than doubled from its debut price of 82p in March.

However, a recent trading statement from the latter concern shows that this could be just the start of a successful stint on AIM for Accuma, which is younger than its two rivals. Accuma also charges slightly more for its services than Debtmatters: up to 3,000 for an IVA initially, followed by 78 each month for five years, or 4,680 in all.

The group is at an earlier stage of its development, having only started in its present form after chief executive Charles Howson bought the business in 2003. During the quarter leading up to flotation the number of IVAs completed stood at 46 per month. Since then, this has picked up to 86 in May, 106 in June and roughly 160 in July.

That equates to an annualised rate of 1,800, already matching forecasts for 2006, assuming there is no further growth. This exceeds the overall IVA markets growth rate. With Accuma planning to advertise on television as well, the companys growth should continue. Further out, Howson plans to expand the groups offerings of financial products.

The 39-year-old Howson, who owns 47.8 per cent of the company, acquired Accuma after spending nearly two years at leading debt adviser Baines & Ernst. Many of the executives in his team also come from that organisation. A new IT manager has recently been installed to support the companys anticipated expansion.

It will take time for this to show through in the companys financial figures, since the costs of installing business systems, business development strategies, advertising and setting up IVAs are incurred up front. Most revenues are received over the succeeding five years after the IVA is agreed. Future contracted revenues now stand at 4.7 million.

Even the Bank of Englands decision to cut interest rates in early August does not affect Howsons current bullish outlook. He believes the scale of consumer indebtedness in the UK will provide significant growth prospects, despite the prospect of lower interest rates.

House broker Daniel Stewart has said it will revise its forecasts upwards in October when the full year results are announced. Investors should buy ahead of this.

Christopher Spink

cheers GF.

First move up in a while. A lot of activity this afternoon.

cheers GF.

Well this one is doing the right thing and moving north.

cheers GF.

Wow really moving on up now.

cheers Gf.