Half Yearly Report
September 24 2009 - 2:00AM
UK Regulatory
TIDMMDCG
RNS Number : 5706Z
Money Debt & Credit Group Plc
24 September 2009
Money Debt & Credit Group PLC
('Money Debt & Credit Group' or 'the Group')
INTERIM RESULTS
Money Debt & Credit Group PLC, a leading provider of financial solutions to
over-indebted individuals who are seeking to manage and reduce their debt burden
in a responsible manner, announces its results for the 6 months ended 30 June
2009.
EXECUTIVE CHAIRMAN'S STATEMENT
Overview
The trading environment in the first half of 2009 has continued to present
opportunities and challenges for the Group.
Revenues have grown strongly with turnover for the 26 week period to 30 June
2009 of GBP4.0m being an increase of GBP1.5m compared with the same period in
2008. The Group made a loss of GBP407,000 in the period (2008: GBP868,000 loss).
However, the narrowing of the trading loss represents further progress towards
our goal of achieving profitability and positive cash flows for the Group.
The investment in infrastructure and resources in 2008 has increased operational
effectiveness and improved our competitive position within the sector. Our new
bespoke CRM has enhanced the effectiveness of lead handling, reporting and
management information. New on-line marketing initiatives and opportunities are
also delivering good results.
As at 30 June 2009, the Group was managing a portfolio of 4,041 active
Individual Voluntary Arrangements (IVAs) and 6,847 Debt Management Plans (DMPs),
which comprise an annuity income base building within the business that will
benefit future financial periods.
Operating Review: IVA Business
The Group completed 640 new IVAs during the 6 months ended 30 June 2009. Fee
levels on new cases have improved slightly over the corresponding period in
2008.
Ultimately, the businesses in the sector which will prosper will be those with
the optimum marketing mix, the highest standards of professional services to
clients and creditors, the most efficient processes, and the lowest transaction
costs. The Group believes it has made significant progress in all these areas
and the results are encouraging. In August 2009, the last full month for which
data is available, 106 new IVAs were agreed with creditors.
Operating Review: Debt Management Business
The Group's decision to form its debt management subsidiary has proved to be
successful as it now completing over 600 plans per month generating significant
revenues. This investment decision was critical to the long term success of the
Group to ensure we could offer a full range of services to clients and reduce
dependence on a single product. Creation of the debt management business
required significant investment in staff and infrastructure but I am pleased to
report that this investment is now yielding a positive contribution to the
business.
In August 2009, the latest complete month for which data is available, 640 new
DMPs were completed, a strong performance from our recently re-organised and
expanded team of debt management specialists.
Proposed delisting from AIM
Despite the positive developments in our underlying business during the period
it is disappointing to report another financial loss. In light of this the Board
instigated a review of all areas of our cost base, which included an assessment
of the benefits of maintaining our AIM quotation given the significant
associated costs. Following completion of this review, the Board has today
announced that it is seeking shareholders approval for the cancellation of
admission to trading on AIM of its ordinary shares. Further details are
contained in a circular being sent to shareholders today and the proposal is
subject to shareholder approval at a General Meeting.
Market outlook
Undoubtedly, the economic climate is continuing to develop in the Group's
favour. Problems of consumer debt are accelerating as the recession deepens. I
am confident the Group is well placed to take advantage of this with our highly
trained and motivated workforce, infrastructure investment, and marketing
programmes. The Board is determined to maximise the resources available to
invest in the business in order to take advantage of this opportunity.
Simon Johnson
Executive Chairman & Chief Executive
Contacts:
+-----------------------------------------------------+------------------+
| Money Debt & Credit Group plc | |
+-----------------------------------------------------+------------------+
| Simon Johnson, Chairman and CEO | Tel: 01923 636 |
| | 800 |
+-----------------------------------------------------+------------------+
| | |
+-----------------------------------------------------+------------------+
| Smith & Williamson Corporate Finance Limited | |
+-----------------------------------------------------+------------------+
| Martyn Fraser | Tel: 0117 376 |
| | 2213 |
+-----------------------------------------------------+------------------+
| Barrie Newton | |
+-----------------------------------------------------+------------------+
CONSOLIDATED INCOME STATEMENTS
for the 6 months ended 30 June 2009
+---------------------------------+-------------+-------------+--------------+
| | Unaudited | Unaudited | Audited |
| | 6 month | 6 month | Year ended |
| | period | period | 31 December |
| | ended | ended | 2008 |
| | 30 June | 30 June | GBP'000 |
| | 2009 | 2009 | |
| | GBP'000 | GBP'000 | |
+---------------------------------+-------------+-------------+--------------+
| Revenue | 4,018 | 2,535 | 5,963 |
+---------------------------------+-------------+-------------+--------------+
| Cost of Sales | (2,872) | (1,850) | (4,961) |
+---------------------------------+-------------+-------------+--------------+
| Gross profit | 1,146 | 685 | 1,002 |
+---------------------------------+-------------+-------------+--------------+
| | | | |
+---------------------------------+-------------+-------------+--------------+
| Administrative expenses | (1,449) | (1,372) | (2,763) |
+---------------------------------+-------------+-------------+--------------+
| Operating loss | (303) | (687) | (1,761) |
+---------------------------------+-------------+-------------+--------------+
| | | | |
+---------------------------------+-------------+-------------+--------------+
| Interest payable | (105) | (185) | (367) |
+---------------------------------+-------------+-------------+--------------+
| Interest receivable | 1 | 4 | 9 |
+---------------------------------+-------------+-------------+--------------+
| Loss before tax | (407) | (868) | (2,119) |
+---------------------------------+-------------+-------------+--------------+
| | | | |
+---------------------------------+-------------+-------------+--------------+
| Tax | - | - | - |
+---------------------------------+-------------+-------------+--------------+
| Loss for the period | (407) | (868) | (2,119) |
+---------------------------------+-------------+-------------+--------------+
| | | | |
+---------------------------------+-------------+-------------+--------------+
| | | | |
+---------------------------------+-------------+-------------+--------------+
| Loss per share | | | |
+---------------------------------+-------------+-------------+--------------+
| Basic and diluted loss per | 1.0p | 2.2p | 5.2p |
| ordinary share | | | |
+---------------------------------+-------------+-------------+--------------+
CONSOLIDATED BALANCE SHEETS
as at 30 June 2009
+---------------------------------+-------------+-------------+--------------+
| | Unaudited | Unaudited | Audited |
| | As at | As at | Year ended |
| | 30 June | 30 June | 31 December |
| | 2009 | 2009 | 2008 |
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+-------------+-------------+--------------+
| Assets | | | |
| | | | |
+---------------------------------+-------------+-------------+--------------+
| Non-current assets | | | |
+---------------------------------+-------------+-------------+--------------+
| Property, plant & equipment | 510 | 623 | 529 |
+---------------------------------+-------------+-------------+--------------+
| Total non-current assets | 510 | 623 | 529 |
+---------------------------------+-------------+-------------+--------------+
| | | | |
+---------------------------------+-------------+-------------+--------------+
| Current assets | | | |
+---------------------------------+-------------+-------------+--------------+
| Trade and other receivables | 1,800 | 1,757 | 1,501 |
+---------------------------------+-------------+-------------+--------------+
| Cash and cash equivalents | - | 74 | 29 |
+---------------------------------+-------------+-------------+--------------+
| Total current assets | 1,800 | 1,831 | 1,530 |
+---------------------------------+-------------+-------------+--------------+
| | | | |
+---------------------------------+-------------+-------------+--------------+
| Total assets | 2,310 | 2,454 | 2,059 |
+---------------------------------+-------------+-------------+--------------+
| | | | |
+---------------------------------+-------------+-------------+--------------+
| | | | |
+---------------------------------+-------------+-------------+--------------+
| Equity and liabilities | | | |
+---------------------------------+-------------+-------------+--------------+
| Share capital | 4,000 | 4,000 | 4,000 |
+---------------------------------+-------------+-------------+--------------+
| Share premium account | 1,635 | 1,635 | 1,635 |
+---------------------------------+-------------+-------------+--------------+
| Merger reserve | 4,200 | 4,200 | 4,200 |
+---------------------------------+-------------+-------------+--------------+
| Reverse acquisition reserve | (7,000) | (7,000) | (7,000) |
+---------------------------------+-------------+-------------+--------------+
| Retained loss | (8,768) | (7,108) | (8,359) |
+---------------------------------+-------------+-------------+--------------+
| Total equity | (5,933) | (4,273) | (5,524) |
+---------------------------------+-------------+-------------+--------------+
| | | | |
+---------------------------------+-------------+-------------+--------------+
| Non-current financial | | | |
| liabilities | | | |
+---------------------------------+-------------+-------------+--------------+
| Finance lease obligations | 27 | 220 | 73 |
+---------------------------------+-------------+-------------+--------------+
| Shareholder loan | 5,530 | 4,615 | 4,909 |
+---------------------------------+-------------+-------------+--------------+
| Total non-current liabilities | 5,557 | 4,835 | 4,982 |
+---------------------------------+-------------+-------------+--------------+
| | | | |
+---------------------------------+-------------+-------------+--------------+
| Current liabilities | | | |
+---------------------------------+-------------+-------------+--------------+
| Trade & other payables | 2,473 | 1,770 | 2,397 |
+---------------------------------+-------------+-------------+--------------+
| Financial liability: finance | 174 | 122 | 204 |
| lease obligations | | | |
+---------------------------------+-------------+-------------+--------------+
| Bank overdraft | 39 | - | - |
+---------------------------------+-------------+-------------+--------------+
| Total current liabilities | 2,686 | 1,892 | 2,601 |
+---------------------------------+-------------+-------------+--------------+
| | | | |
+---------------------------------+-------------+-------------+--------------+
| Total liabilities | 8,243 | 6,727 | 7,583 |
+---------------------------------+-------------+-------------+--------------+
| | | | |
+---------------------------------+-------------+-------------+--------------+
| Total equity & liabilities | 2,310 | 2,454 | 2,059 |
+---------------------------------+-------------+-------------+--------------+
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
for the 6 months ended 30 June 2009
+----------+---------+---------+---------+----------+-------------+---------+
| | Share | Share | Merger | Retained | Reverse | Total |
| | Capital | Premium | Reserve | | Acquisition | GBP'000 |
| | GBP'000 | GBP'000 | GBP'000 | Earnings | Reserve | |
| | | | | GBP'000 | GBP'000 | |
| | | | | | | |
+----------+---------+---------+---------+----------+-------------+---------+
| Balance | 4,000 | 1,635 | 4,200 | (6,240) | (7,000) | (3,405) |
| as at | | | | | | |
| 1 | | | | | | |
| January | | | | | | |
| 2008 | | | | | | |
+----------+---------+---------+---------+----------+-------------+---------+
| Loss | - | - | - | (868) | - | (868) |
| for | | | | | | |
| the | | | | | | |
| period | | | | | | |
| | | | | | | |
+----------+---------+---------+---------+----------+-------------+---------+
| | | | | | | |
+----------+---------+---------+---------+----------+-------------+---------+
| Balance | 4,000 | 1,635 | 4,200 | (7,108) | (7,000) | (4,273) |
| as at | | | | | | |
| 30 June | | | | | | |
| 2008 | | | | | | |
| | | | | | | |
+----------+---------+---------+---------+----------+-------------+---------+
| Loss | - | - | - | (1,251) | - | (1,251) |
| for | | | | | | |
| the | | | | | | |
| period | | | | | | |
| | | | | | | |
+----------+---------+---------+---------+----------+-------------+---------+
| Balance | 4,000 | 1,635 | 4,200 | (8,359) | (7,000) | (5,524) |
| as at | | | | | | |
| 31 | | | | | | |
| December | | | | | | |
| 2008 | | | | | | |
| | | | | | | |
+----------+---------+---------+---------+----------+-------------+---------+
| Loss | - | - | - | (409) | - | (409) |
| for | | | | | | |
| the | | | | | | |
| period | | | | | | |
| | | | | | | |
+----------+---------+---------+---------+----------+-------------+---------+
| Balance | 4,000 | 1,635 | 4,200 | (8,768) | (7,000) | (5,933) |
| as at | | | | | | |
| 30 June | | | | | | |
| 2009 | | | | | | |
| | | | | | | |
+----------+---------+---------+---------+----------+-------------+---------+
CONSOLIDATED CASH FLOW STATEMENTS
for the 6 months ended 30 June 2009
+-----------------------------------+-----------------+---------------+---------------+
| | Unaudited | Unaudited | Audited |
| | 6 month period | 6 month | Year ended |
| | ended | period ended | 31 December |
| | 30 June 2009 | 30 June 2009 | 2008 |
| | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------+-----------------+---------------+---------------+
| Cash flows from | | | |
| operating activities | | | |
+-----------------------------------+-----------------+---------------+---------------+
| | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Net loss before taxation | (407) | (868) | (2,119) |
+-----------------------------------+-----------------+---------------+---------------+
| Adjustments for: | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Depreciation | 112 | 102 | 211 |
+-----------------------------------+-----------------+---------------+---------------+
| Interest | 105 | 185 | 367 |
| payable | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Interest | (1) | (5) | (8) |
| received | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Cash used by operations | (191) | (586) | (1,549) |
| before changes in | | | |
| working capital | | | |
+-----------------------------------+-----------------+---------------+---------------+
| | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Movement in trade and | (298) | (182) | 73 |
| other receivables | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Movement in trade and | 73 | 209 | 837 |
| other payables | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Cash used by operating | (416) | (559) | (639) |
| activities | | | |
+-----------------------------------+-----------------+---------------+---------------+
| | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Cash flows from | | | |
| investing activities | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Finance Leases | - | 30 | 47 |
+-----------------------------------+-----------------+---------------+---------------+
| Proceeds from sale of | - | 13 | 13 |
| property, plant and | | | |
| equipment | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Purchase of property, | (93) | (62) | (78) |
| plant and equipment | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Net cash used in | (93) | (19) | (18) |
| investing activities | | | |
+-----------------------------------+-----------------+---------------+---------------+
| | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Cash flows from | | | |
| financing activities | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Hire purchase principal | (75) | (66) | (148) |
| repayments | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Proceeds from | 525 | 731 | 853 |
| shareholder loan | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Interest receivable | 1 | 5 | 8 |
+-----------------------------------+-----------------+---------------+---------------+
| Interest payable | (8) | (14) | (25) |
+-----------------------------------+-----------------+---------------+---------------+
| Net cash from financing | 443 | 656 | 688 |
| activities | | | |
+-----------------------------------+-----------------+---------------+---------------+
| | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Net (decrease)/increase | (66) | 78 | 31 |
| in cash and cash | | | |
| equivalents | | | |
+-----------------------------------+-----------------+---------------+---------------+
| | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Cash and cash | 27 | (4) | (4) |
| equivalents at beginning | | | |
| of the period | | | |
+-----------------------------------+-----------------+---------------+---------------+
| | | | |
+-----------------------------------+-----------------+---------------+---------------+
| Cash and cash | (39) | 74 | 27 |
| equivalents at the end | | | |
| of the period | | | |
+-----------------------------------+-----------------+---------------+---------------+
NOTES TO THE INTERIM ACCOUNTS
1. Basis of Preparation
The interim financial statements for the six months ended 30 June 2009 are
unaudited and do not constitute statutory accounts. The interim results have
been prepared using accounting policies which are consistent with International
Financial Reporting Standards as adopted by the European Union.
The Interim Report is prepared on the basis of the accounting policies set out
in the most recent set of annual financial statements.
The Directors have elected not to apply IAS 34 Interim financial reporting.
2. Loss per Share
The earnings per share (basic) has been calculated using the loss for the period
of GBP407,000 and a weighted average number of ordinary shares in issue during
the six month period from 1 January 2009 to 30 June 2009 of 40,000,000.
The share options currently in issue are options over existing shares held by
the Directors and are deemed to be anti-dilutive.
3. Comparative Figures
The comparative figures represent the unaudited results for the six month
period to 30 June 2008 and the audited results for the year ended 31 December
2008.
4. Distribution of the Interim Report
Copies of the Interim Report are being sent to shareholders. Further copies may
be obtained from the Company Secretary at the registered office: 45 Clarendon
Road, Watford WD17 1SZ. In addition, an electronic version will be available on
the Company's website:
http://www.moneydebtandcredit.com/investor-relations
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KGGZLVFGGLZM
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