News blog
Debts.co.uk
- BY: Andrew Hore |
- POSTED: 19/02/2008 |
Personal debt adviser Debts.co.uk is buying part of fellow Aim-quoted debt adviser Brightside.
It is paying £1m plus a temporary premises fee of £86,000 for Glasgow-based PB Recovery. There is also deferred consideration of up to £125,000 depending on the level of work in progress and debtors at completion. A non-refundable deposit of £25,000 has been paid to Brightside.
A placing at 45p a share will raise £2.73m before expenses. Debts.co.uk has borrowings of £1.3m at the moment.
PB Recovery offers Scottish Protected Trust Deeds – the equivalent of IVAs - plus bankruptcy and corporate work. It has 695 PTDs, 360 IVAs and 230 bankruptcies under management. They should generate £600,000 of profits in the first year it is part of the group.
The disposal of PB Recovery has to be agreed by Brightside shareholders. Brightside floated on 9 January 2007 at a share price of 69p. They are now trading at 34.5p.
The enlarged group will have 2,050 PTDs, 3,300 IVAs and 2,500 debt management programmes.
Debts.co.uk has closed offices and cut costs by just over £2m a year. The cost of the restructuring was £800,000. Further cost savings of £200,000 a month have been identified.
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