CLA Celsius Resources Limited

RNS Number:6528U
Claims Direct PLC
24 November 2000

                              
                      CLAIMS DIRECT PLC
                              
              EXCEPTIONAL CHARGE IN SECOND HALF
                              
            ENHANCEMENT OF CLAIMS DIRECT PROTECT
                      INSURANCE POLICY
                              
               INTERIM RESULTS PROFIT FORECAST

Claims  Direct,  the  UK market leader  in  personal  injury
compensation, which floated on the London Stock Exchange  in
July,  is  today announcing a trading update  ahead  of  its
interim  results  (due to be reported next  Wednesday,  29th
November 2000).

Exceptional charge in second half

Since the publication of its upbeat trading statement on  29
September 2000, Claims Direct has recently been affected  by
adverse  media  coverage,  reporting  that  in  some   cases
incepted  prior  to 1 April 2000, damages  received  by  its
clients  have  been substantially reduced  by  the  client's
inability   to   fully  recover  insurance   premiums   from
defendants.   Although the Access to Justice Act  passed  in
1999  accepted  the principle of premium recoverability,  it
only  became  clear in February 2000 that this would  be  in
respect of cases incepted after 1 April 2000.  Accordingly a
number  of  successful  claims have been  affected  by  this
problem.

The  Company  has  been responding to  a  rising  number  of
enquiries relating to this issue on a case by case basis.  A
provision  of  #1.0m has as a result been  included  in  the
interim results for the six months to 30 September 2000,  to
cover  any resulting ex-gratia payments made by the  Company
to  claimants.  Despite this, the results are  above  market
expectations (see below).

In  light  of the above events and in order to take  a  more
proactive approach towards protecting claimants' "Access  to
Justice", the Board of Claims Direct has decided to  take  a
further  charge  in the second half of approximately  #4.0m.
This  will  ensure that no claimant will be worse  off  than
would  have  been  the case under Claims  Direct's  previous
percentage  fee arrangement.  The Company is confident  that
this new provision, together with the amount provided for in
the interim accounts, will be sufficient to cover all future
ex-gratia payments relating to this issue.

Enhancement of Claims Direct Protect insurance policy

Claims  Direct  has for some months been  working  with  its
underwriters  to  improve the terms of its after  the  event
insurance  policy - Claims Direct Protect.  We are expecting
shortly  to be able to announce the introduction of enhanced
insurance  cover designed to ring fence a minimum amount  of
compensation  for  the  claimant.  In such  event,  existing
policyholders would be encouraged to transfer  to  this  new
policy. A further announcement will be made in due course.

Interim results profit forecast

Pre-tax profits for the six months ended 30 September  2000,
before amortisation, interest credits and exceptional items,
to  be  reported next Wednesday 29th November, will be above
#11.5m  (1999:  #4.3m),  ahead of  market  expectations,  on
turnover  of  above #42.0m (1999: #9.8m).  An  update  on  
current trading conditions will be given next week.

Commenting  on today's announcement, Chief Executive,  Colin
Poole said:

"We  believe  by  today's action that we will  end  damaging
media  comment,  particularly  since  the  end  of  October,
concerning some of our clients who purchased policies before
1 April 2000.

"Furthermore,  the enhanced Claims Direct Protect  insurance
policy  will provide additional comfort to clients who  have
taken  out  policies since 1 April, as well as new  clients,
who   may   be  concerned  about  the  defendant   insurance
industry's  apparent reluctance to accept recoverability  as
laid out in the Access to Justice Act.

"We  look  forward to announcing our maiden interim  results
next  Wednesday,  which  will  demonstrate  the  significant
progress being made by the company."


For further information, please contact:

Claims Direct plc

Colin Poole, Chief Executive                    01952 284838
Paul Doona, Finance Director                    01952 284938
Web Site                                www.claimsdirect.com

Golin/Harris Ludgate                           0207 253 2252

Reg Hoare

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