Business
Trading Update
Trading Update.
About this update from Acg Metals Limited Class A
[{"type":"text","content":"\n RNS Number : 2476S Accuma Group PLC 14 May 2009 \n \nAccuma Group plc ('Accuma' or 'the Company')\n \nTrading Update\n \nA Circular concerning the disposals of the business and certain assets of Wilson Phillips Limited and of Accuma Insolvency Practitioners Limited and a Notice of General Meeting, which were announced on 1 May 2009, was sent to shareholders today (14th May 2009). The Company included a trading statement within the Circular, the text of which is set out today: \n\n'We have previously commented in detail on the impact of significant changes to the IVA sector over the\npast eighteen months. Thomas Charles & Co. Ltd, as part of our IVA division, was impacted by these\nchanges as its primary income was received from marketing services and set-up costs of new IVAs. In line\nwith Group strategy to reduce direct marketing expenditure, Thomas Charles & Co. Ltd ceased to trade in\nthe first quarter of 2009 thus stemming any continuing losses in this division. The reduction in direct\nmarketing expenditure within the IVA division has also impacted on the Group's debt management division,\nByrom & Keeley, which had historically derived considerable benefit from this. In addition, following a\ndeterioration in the number of enquiries generated from a major lead supplier towards the end of 2008,\nalternative lead suppliers were engaged. This led to a reduction in new debt management cases signed on a\nmonthly basis from an historic average of 301 in the first half of 2008 to 181 in the second half of 2008. The\naverage, on a monthly basis, of new debt management cases for the first quarter of 2009 was 145.\n\nFollowing a review of the carrying value of intangible assets in this division, we are of the opinion that, in\nthe current economic climate, it would be prudent to write down the carrying value of the goodwill relating\nto Byrom & Keeley in the Group's balance sheet to £3.5 million and as a result the Group will incur an\nimpairment charge of £6.58 million in its results for the year ended 31 December 2008. Despite this\nimpairment, we remain confident of the prospects for this division. Recent agreements for the supply of\nclients on a contingency basis should increase our average monthly new client signings, and the Board\nbelieves that th...