Debts.co.uk sees loss of £0.9m

Debt specialist Debts.co.uk has reported a loss after tax of £0.9m for the first half of the 2008, compared with a £1.3m profit for the same period last year.

Bernard Asher, chairman at Debts.co.uk says despite this, the directors believe that Debts.co.uk is in a strong and unique position and has put together a stable operating position in a difficult market place.

Asher says: “The group has in place a number of channels and strategic alliances which have been developed to ensure that there is good organic growth in the business, a move away from pure business to consumer relationships has been made and in place is a greater mix between different sources of referrals
and enquiries.”

Total group revenue stands at £4.4m down from £4.9m in 2007, however the firm continues to see healthy case volumes, and currently has 5,923 cases in an approved arrangement, compared with only 3,125 it had in 2007.

IVAs now account for 47% of the firms revenues and 39% of cases in approved arrangements, which it thinks is set to continue to fall over the next six months as other areas of the group increase.