Pre-close trading update

RNS Number:9597U
Debtmatters Group PLC
17 April 2007


17 April 2007
                            Debtmatters Group plc
                       ('Debtmatters' or the 'Group')

                          Pre-close Trading Update


The Board of Debtmatters is pleased to make the following pre close trading statement for the twelve months to 31st 
March 2007.

*         Trading is in line with market expectations despite the well publicised background of increased competition   
          and difficulties which have affected the whole sector

*         The Group is cash generative and well placed to consolidate and grow its position as one of the leading quoted
          players in its marketplace


*         Demand for the group's products remains strong

*         Loanmakers, the secured loan brokerage division, continues to grow in line with ambitious projections and     
          March 2007 was a record month for loan completions


Market conditions have changed significantly in the second half of the financial year.  Increasing competition for 
market share through all advertising media has been apparent and this has provided upward pressure on the cost of case 
acquisition, although Debtmatters strong brand awareness has been an increasingly important factor in generating cases 
at a cost effective price.

Creditor attitudes in the second half have also changed.  In general creditors have become more stringent in their 
acceptance criteria, making it particularly difficult to anticipate which IVA proposals they will approve.  This has had
an adverse impact on acceptance rates and therefore on total cases approved.  The rate of approval dipped in January 
2007 but by March appeared to have recovered towards first half levels.

This reflects a changing mood in the sector and talks within the industry involving the British Bankers Association and 
the Insolvency Service seem to be progressing well towards an industry code.  Early indications are that Debtmatters 
would have to make few changes to its operations to comply with a new industry code, having significantly invested in 
systems and procedural compliance since the company's inception in 2003.  The first scheduled external audit of the 
Group's ISO9001 accreditation has been successfully completed and that the business has retained this prestigious 
quality mark.

Debtmatters stands firm on its ethical approach to consumers and creditors and has continued to ensure that all aspects 
of the business are compliant.  To this end the Group has recently completed its first of a series of creditor visits 
and reviews instigated by Debtmatters and is pleased to note their satisfaction with our staff, systems and processes.

Ges Ratcliffe, CEO of Debtmatters Group, commented:

"IVAs remain a highly credible solution for indebted consumers.  There is an increasing and significant number of 
individuals who are in need of reliable and objective advice and help.

In light of changing market conditions, we have recently undertaken a review of operations.  Ensuring that we have the 
appropriate level of resources deployed across all areas of the business and a prudent approach to budgeting have 
enabled us to meet market expectations for FY07 despite increasingly difficult market conditions.

Having experienced a period of very rapid growth in the first half of the financial year the Group has consolidated its 
position in the second half.  Although the market has not settled down completely there are signs of improvement in the 
sector and we look forward to working increasingly closely with creditors and their representatives to consolidate this 
position over the coming months.  We remain confident in the longer term prospects of the industry.


The Group will announce its preliminary results in the week commencing the 18th June 2007."


Enquiries:

Ges Ratcliffe                       CEO, Debtmatters Group plc                  01204 678 200
Rick Thompson / Freddy Crossley     Charles Stanley Securities                  020 7149 6000
Shane Dolan                         Biddicks                                    020 7448 1000




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