Compass Finance reveals interim results

Compass Finances interim results show it packaged 108.1m of loans in the six months ending March 31, up from 97.8m in 2005.

During the period the group launched the Compass Finance branded insurance product range to supplement the existing product set and acquired The Debt Advisor in May.

The group says the UK debt consolidation and debt services market continues to grow fuelled by unprecedented levels of consumer debt with UK personal debt reaching 1,182bn at the end of March.

The groups shareholders gave their approval on June 12 for the acquisition of The Debt Advisor, meaning Compass Finance now provides a range of debt advisory solutions through the brokering and packaging of mortgages, secured loans and unsecured loans as well as the provision of individual voluntary arrangements and debt management plans for clients requiring debt consolidation or debt restructuring solutions.

Beverley Budsworth, founder of The Debt Advisor and The Business Debt Advisor, will head the groups debt advisory division.

Grenville Folwell, non-executive chairman at Compass Finance, says: As indicated at the time we issued our results for the year ended September 30 2005, the group has returned to profit in the first half of 2006 reporting a profit before tax, goodwill amortisation and charges in respect of share options of 300,000 for the six month period to March 31.

Turnover grew during the period by 14% and the overall result was therefore a favourable improvement on the comparable period in 2005.

With the seasonal effects of December and January now behind us, the board is confident that further progress will be made in the second half of the 2006 financial year.

The group was required under the requirements of the applicable accounting standards to book a charge in respect of share options for the period of 1.866m.

Folwell says: This is not a cash cost to the group but is a technical accounting charge which is reversed in the profit and loss account reserves.

Looking ahead, we have identified a clear need for investment in systems, technology and people infrastructure to enable rapid growth within the division.

Significant planning has already been undertaken for this infrastructure in anticipation of formal completion of the acquisition.

I look forward to updating our shareholders on our progress in our debt advisory division in the near future.”