Unaudited results for the six months to 31 March 2006
Results
- £108.1 million of loans packaged in the period (2005: £97.8 million)
- £2.1 million fund raising net of expenses completed in February 2006 to support working capital and growth of the brokerage and Compass Debt Management
- Launch of Compass Finance branded insurance product range to supplement the existing product set
- Acquisition of The Debt Advisor announced in May 2006
- Share Placing announced in May 2006 to raise £4.15 million net of expenses to fund the cash consideration of the acquisition and to provide working capital for investment in the growth of The Debt Advisory Division
- Full in-house financial solution product set now established, creating an innovative business model and enhancing our market position
Outlook
- UK debt consolidation and debt services market continues to grow fuelled by unprecedented levels of consumer debt (UK personal debt reached £1,182 billion at the end of March 2006)
- Acquisition of The Debt Advisor creates an innovative business and customer acquisition model to leverage greater efficiencies in lead generation and conversion
- Continued improvement expected within the Consumer Loans Division in the second half
- Uplifts in case run-rates anticipated in the newly established Debt Advisory Division in the second half
- Management remains confident about the Group’s long-term potential
