Business
Trading Statement
Trading Statement.
About this update from Acg Metals Limited Class A
[{"type":"text","content":"\n Accuma Group PLC\n01 February 2007\n\nPress Release 1 February 2007\n\n\n Accuma Group Plc\n ('Accuma' or 'the Company' or 'the Group')\n Trading Update\n\nFollowing our announcement on Friday 26 January 2007 the Group is now able to\nupdate the market more fully on its current trading and future prospects.\n\nIVA Business\n\nIn the first half of the financial year, our IVA business has suffered from a\npoorly executed marketing strategy, together with a more competitive environment\nand lower approval rates from creditors.\n\nWe have made changes to our marketing strategy and, in particular, have\nimplemented more robust reporting systems. In addition, as explained later, we\nhave strengthened our marketing department with the appointment of Stuart\nGitsham as Marketing Director. Given the lead time from point of advertising to\nacceptance of cases at creditor meetings, however, the full impact of these\nchanges will not be felt until the final quarter of the financial year and into\nthe 2007/2008 financial year.\n\nWith regard to approval rates, historically, 92 per cent. to 94 per cent. of\nAccuma cases have been accepted at creditor meetings but due to creditor\npressure this dropped to 78 per cent. towards the end of 2006. We have noted\nthat since December approval rates have returned to 85 per cent.\n\nThe lower approval rates, referred to above, together with lower call volumes\ngenerated from our marketing campaigns have resulted in our quarterly run rate\nof new IVA cases falling from 271 average per month (August to October 2006) to\n221 average per month (November 2006 to January 2007). We are confident that,\nwith the actions we have now taken, our run rates will recover later this\nfinancial year.\n\nWe can also report that future contracted revenue in our IVA business stood at\n£15.2m at 31 December 2006.\n\nCommenting more generally, The British Bankers Association and The Insolvency\nService are working with the industry to ensure the IVA process is administered\nfairly and from the providers perspective that an IVA is only recommended when\nit is the most appropriate solution for the consumer. The Group is confident of\nits profiling and verification processes and we would extend an open invitation\nto creditor organisations to visit our premises to see at first hand the\nstringent systems we adopt in deter...