ClearDebt Group plc 
FINANCIAL STATEMENTS 
for the year ended 30 June 2010 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Registration Number 02441375 ClearDebt Group plc 
CONTENTS 
 
 
 
 Page 
 
Financial highlights 1 
Chairman’s statement 2 
Chief Executive’s statement 3-6 
Directors and advisers 7 
Directors’ report 8-10 
Corporate governance 11-12 
Statement of directors’ responsibilities 13 
Directors’ remuneration report 14-15 
 
 
 
Accounts 
Auditor’s report to members 16-17 
Consolidated income statement 18 
Consolidated statement of comprehensive income 19 
Consolidated statement of financial position  20 
Consolidated statement of changes in equity 21 
Consolidated statement of cash flows 22 
Notes to the consolidated financial statements 23-49 
Company balance sheet 50 
Notes to the company financial statements 51-58 
Shareholder information 59  ClearDebt Group plc 
FINANCIAL HIGHLIGHTS 
For the year ended 30 June 2010 
 
   1 
 
 
 2010 2009 
 £ £ 
 
Revenue 6,633,995 3,386,935 
Gross profit 3,300,688 1,436,365 
Profit before interest, tax, depreciation and amortisation* 1,964,744 743,030 
Profit from operations    671,330  576,128 
Profit after taxation 342,235 407,062  
Cash generated by operations 1,466,180 380,807 
 
* before separately disclosable items (note 5) 
 
Since 1 July 2009 (2009: 1 July 2008), the following numbers of new Individual Voluntary Arrangements (IVAs) 
have been arranged through ClearDebt:- 
 
 Year ended Year ended 
 30 June 2010 30 June 2009 
First quarter 176 84 
Second quarter 173 117 
Third quarter 184 118 
Fourth quarter 266 164 
 ____ ____ 
 799 483 
 ____ ____ 
 
In December 2009 some 3,700 IVAs and Protected Trust Deeds (PTDs) were acquired from the Administrator of 
Relax Group plc (“Relax”).  As at 30 June 2010, the total number of IVAs and PTDs generating income was 4,894 
(2009: 858). 
 
Since 1 July 2009, Abacus has arranged 2,366 new plans (1 July 2008: 2,856). In December 2009 some 2,800 Debt 
Management Plans (DMPs) were acquired from the Administrator of Relax. As at 30 June 2010, the total number of 
DMPs generating income was 6,316 (2009: 3,430). 
  ClearDebt Group plc 
CHAIRMAN’S STATEMENT 
 
2 
 
I am delighted to present the Group’s financial statements for the year ended 30 June 2010. The Group performance, 
particularly from the IVA division, has been especially pleasing and has been marked by a step change in the 
number of new IVAs being passed each month and of course by the acquisition of the back books from Relax Group 
plc (“Relax”) for £2.7m in December 2009. 
 
The Group’s financial performance was very strong. Whilst the Group made a pre-tax profit in the year of £465,709 
(2009: £460,923) this has to be considered in light of the Relax acquisition costs amounting to £527,819 (including 
finance costs of £28,346), amortisation relating to the back books of £944,234 and partially offset by a profit on the 
bargain purchase of the back books of £252,914. The financial and operating performance of the Group can be better 
judged by the massive gains in revenue, gross profit and profit before interest, tax, depreciation and amortisation 
when compared to the previous year. 
 
I am pleased to say that the Group has successfully rationalised and integrated the Relax acquisition with some 
6,500 new clients being added more than doubling the client base of the Group. These clients are spread across a 
whole spectrum of IVAs, DMPs and for the first time PTDs - giving us the capacity to take in house cases based in 
Scotland for PTDs which were previously outsourced. 
 
The Group’s Statement of Financial Position shows net assets of £5,016,621 (2009: £4,535,318) including cash of 
£541,504 (2009: £584,593) and has been strengthened by the raising of new monies in April 2010 via the issue of 
convertible loan notes raising £2.3m to finance the £2.7m acquisition and associated costs.  
 
The Group finances are on a sound footing and we look to continue to achieve strong growth in the client base 
through the acquisition of further back books as well as through organic growth with cost efficient marketing 
activity and referral relationships. We have made a very good start to the first quarter as regards new IVA business 
and I look forward to another profitable year.  
 
 
 
Gerald Carey FCIB 
Chairman 
 
17 September 2010  ClearDebt Group plc 
CHIEF EXECUTIVE’S STATEMENT 
 
3 
 
The Group has enjoyed another excellent year which has been further improved by the acquisition of the Relax back 
books for £2.7m together with further substantial growth in the numbers of new IVA cases approved during the past 
year.  
 
In December 2009 we acquired some 6,500 new clients through the back book purchase of IVAs, PTDs and DMPs 
from the Administrator of Relax together with certain staff and offices in Chesterfield where Relax were based. This 
acquisition more than doubled the number of clients within the Group and provided us with additional experienced 
staff in the IVA and DMP areas as well as in PTDs,  allowing us to take in house the processing of new PTDs going 
forward which were previously referred externally.  
  
I am pleased to say that the operations in Chesterfield have been successfully restructured and integrated into the 
Group with the vast majority of clients now transferred onto our back office systems and the staff relocated locally 
to Staveley, Chesterfield in new offices much more appropriate to the size of operation. 
 
I would like to take this opportunity to thank all the new and existing staff in the Group for their dedication and hard 
work over the last nine months in bringing this process to a successful completion.  
 
The timing of cash flow from the Relax acquisition in particular has been well above our forecasts and overall we 
expect the ultimate realisations to be ahead of our initial estimates that were anticipated last December. We continue 
to make rapid progress in closing these cases with over 500 closed since December which is as expected given the 
profile of cases which were mainly recruited in 2007/8 and prior years. As Relax workload falls the existing 
Staveley staff can be utilised to look after new cases recruited to the Group which will avoid the need for further 
recruitment in the short term. We continue to look for further purchases of IVA and/or DMP back books to leverage 
our efficient systems.  
 
Abacus has not been able to grow its DMP plans as aggressively as hoped but we believe many of our competitors in 
this marketplace are also experiencing a slowdown in the growth of DMPs.  The main reason for this is that a much 
higher percentage of new clients this year have converted to IVAs rather than DMPs. We are, however, very pleased 
with the client retention rates both at Abacus and Debtcare (the former Relax DMP operation) which continue to 
generate excellent cash flow, forming a strong income stream and financial foundation for the wider group.  Our 
overall conversion of leads across the Group continues to be good. 
 
Our policy is always to give our clients the most appropriate advice for their circumstances, through using our 
proprietary algorithms and we are perhaps seeing further acceptance from our clients that the IVA is a better long 
term solution to their difficulties than the DMP. ClearDebt has always felt that DMP’s are only applicable for clients 
who will see a rapid recovery in their finances. 
 
We continue to expand our internet and other marketing activities across the Group and are constantly exploring 
new opportunities for lead sources. In addition we are closely monitoring consolidation opportunities within our 
industry and the Group is well financed to capitalise on opportunities that may arise. We have a successful history in 
profitably integrating acquired businesses - both operationally and financially. We are therefore confident that we 
can manage any acquisition risks. This confidence is derived from the strength of our management, but also our 
systems which remain highly scaleable. 
 
THE CONSUMER DEBT MARKET 
 
ClearDebt Group operates within the debt resolution sector, an established sub-category of financial services. 
Personal insolvencies saw a step change in 2006 with a 58% increase in individual insolvencies to over 100,000 per 
annum which has been steadily maintained each year until 2009. In 2009 personal insolvencies increased by 26% 
with IVAs showing growth of 22%. The first half of 2010 continues to show overall growth of 11% in personal 
insolvencies with IVAs growing at nearly 15% when compared to the same period last year.  
 
The contraction in available credit to all but those with unblemished credit records and the slowdown in the housing 
market means traditional refinancing options remain closed to the majority. Our society and those of Western 
economies are now largely driven by consumer consumption financed too often through debt and we see the debt 
resolution sector remaining robust in the foreseeable future. The high levels of consumer debt and unemployment  ClearDebt Group plc 
CHIEF EXECUTIVE’S STATEMENT 
 
4 
 
and forthcoming tax rises and public sector cuts should continue to  increase the total level of personal debt levels; 
thereby increasing the market for ClearDebt’s portfolio of integrated personal debt resolution products.  
 
We see a continued shift towards the IVA or bankruptcy solution and away from DMPs as consumers realise that the 
perceived short term fix of a DMP is actually more expensive in the longer term where a quick return to 
employment or an improvement in circumstances is unlikely to happen quickly. Many DMPs take longer than five 
years to clear debts even with interest and charges frozen (which is not always the case) and so the typical five year 
IVA after which debts are written off in full is increasingly more appropriate. 
 
Against this background the government is actively looking to increase regulation and has already started to enforce 
much stricter compliance monitoring of companies in the sector and it is now much more difficult to renew existing 
consumer credit licences or obtain new ones. We see this as an opportunity for ourselves and those larger 
organisations with cash who maintain the highest standards to purchase back books and consolidate the sector as the 
many smaller players are unwilling or unable to comply with the increased regulation.  
 
THE CLEARDEBT MODEL – IVAs and PTDs 
  
Unlike most of its major competitors in the consumer IVA market, ClearDebt has developed a low overhead, high 
quality model, based on Kaizen manufacturing principles and an intelligent internet interface - www.cleardebt.co.uk. 
This model allows the company’s cost base to be kept to a minimum level whilst still providing high levels of 
service.  It also facilitates efficient growth as there is minimal need to hire new staff until customer number 
thresholds have been breached.  
 
Due to this distinctive operating model, ClearDebt is able to offer a more effective debt resolution solution than 
many of its rivals. The model allows ClearDebt to offer IVAs (if that is the appropriate solution) at lower cost not 
only to the debtor, but also the creditor, by enhancing dividends - thereby increasing the chance that an IVA will be 
approved by the creditor and completed by the debtor, benefiting all parties involved in the proposal. 
 
THE ABACUS MODEL – Debt Management Plans 
 
Abacus provides services to indebted individuals by negotiating and putting in place a debt management plan with 
their creditors. The debtor makes a monthly payment to Abacus who then distributes the payment to the creditors as 
agreed in the plan less an administration fee at an agreed percentage of the debtor’s monthly payment. An initial set 
up fee is also charged.   
 
Such plans are suitable for individuals whose debts are more manageable and rely on the goodwill of creditors as 
they are not a formal insolvency procedure and interest usually continues to accrue on outstanding debts although 
some creditors are prepared to waive the interest for short periods.  
 
Many clients are cross referred between ClearDebt and Abacus allowing the Group to offer an appropriate advice 
solution to all individuals.  
 
As a leading member of the trade body, The Debt Resolution Forum, ClearDebt has been in regular negotiation with 
the creditor community and aims to be at the forefront of any proposals to introduce a Regulated Debt Management 
Plan following the completion of the consultation process that was undertaken by the Ministry of Justice at the end 
of 2009. 
 
 
 
 
 
 
 
 
 
  ClearDebt Group plc 
CHIEF EXECUTIVE’S STATEMENT 
 
5 
 
OPERATIONAL REVIEW 
 
ClearDebt – IVA Division 
 
Since 1 July 2009 (2009: 1 July 2008), the following numbers of new IVAs have been arranged through ClearDebt:- 
 
 Year ended Year ended 
 30 June 2010 30 June 2009 
First quarter 176 84 
Second quarter 173 117 
Third quarter 184 118 
Fourth quarter 266 164 
 ____ ____ 
 799 483 
 ____ ____ 
 
The growth of new IVAs continues to be strong and ClearDebt enjoyed an excellent year with a 65% increase in the 
number of IVAs passed in the year with 799 new cases (2009: 483) and a large rise in profitability.  I am pleased to 
say this rate of growth has recently accelerated further as new lead sources come on stream. Following the 
acquisition of some 3,700 IVAs and PTDs from Relax last December, ClearDebt now has as at 30 June 2010 a total 
of 4,894 IVA and PTD’s generating income (2009: 858).  
 
ClearDebt has made steady progress in the first three quarters of the year before seeing a rapid acceleration in the 
number of new plans in the fourth quarter following the introduction of further lead sources.  
 
Case numbers in the first quarter of our current financial year are expected to be well ahead of the fourth quarter 
with 216 cases already passed by the end of August and a solid pipeline in hand. This first quarter is one of the 
quieter periods of the year for the industry due to the summer holiday period and so bodes well for the rest of the 
year.  
 
The Board monitors several key performance indicators  (“KPIs”) for the business on a monthly basis including the 
number of cases passed, various conversion ratios from lead to cases passed, the cost per case acquired and the staff 
to  caseload numbers. Your Board is pleased to advise that these KPIs are delivering positive messages about the 
business. 
 
Abacus– Debt Management Division  
 
The division made a small profit in the period having achieved profitability for the first time last year although we 
have seen a slowdown in the recruitment of new clients and an increase in the number of plans that cease as the age 
of the relatively young DMP book at Abacus matures.  There have also been a number of clients who have ceased a 
DMP and commenced an IVA with us.  
 
In the year 2009/10, Abacus has arranged 2,366 new plans (2008/09: 2,856). In December 2009 we acquired some 
2,800 DMP plans from Relax and as at 30 June 2010 the total number of debt management plans generating income 
was 6,316 (2009: 3,430). Our attrition rates on DMPs are well within our normal expectations and we are actively 
looking for further back books to acquire as a means of boosting income over the short and medium term. 
 
The Board has KPIs to monitor the number of active income generating plans as well as the value of monthly 
payments made by debtors.  Revenue is only recognised by Abacus upon receipt of fees which are drawn from 
debtor payments as received.  
 
The costs of acquisition of cases and plans are also monitored closely. We continue to resist the temptation to grow 
the book through lead sources providing leads at what are, in our view uneconomic prices. 
   ClearDebt Group plc 
CHIEF EXECUTIVE’S STATEMENT 
 
6 
 
 
FINANCIAL REVIEW 
 
Group turnover more than doubled to £6.63m (2009: £3.39m) following the Relax acquisition and increased growth 
in the insolvency business. Gross profit more than doubled to £3,300,688 (2009: £1,436,365), largely as a result of 
the Relax acquisition and continued growth in the insolvency division. Administration and finance costs also 
included one-off acquisition related items totalling £449,473 and £78,346 respectively. 
 
In April 2010 we successfully issued to investors £2.3m of 3 yr 10% secured convertible loan notes which are listed 
on the Channel Islands Stock Exchange (CISX) via our wholly owned subsidiary CDG (Guernsey) Limited. This 
comprised £1.8m of investment from new investors and the conversion into the loan notes of £0.5m of the £1.2m 
loan due to D E M  Mond.  
 
Cash resources at the year end amounted to £541,504 and cash flow remains strong leaving the Group on an 
excellent financial footing to finance further back book acquisitions as opportunities present themselves. 
 
GOING CONCERN 
  
As part of its going concern review the Board has followed the guidelines published by the Financial Reporting 
Council entitled “Going Concern and Liquidity Risk: Guidance for UK Companies 2009.  The Board has prepared 
detailed financial forecasts and cash flows for the three years to 30 June 2013 and in drawing up these forecasts the 
Board has made assumptions based upon its view of the current and future economic conditions in the UK that will 
prevail over the forecast period - given that the business is likely to be solely focused on the UK market for the 
foreseeable future. The timing of the cash flows and covenants to the debt holders in respect of loans provided have 
been taken into consideration and in addition to the forecasts we have also produced sensitivities to these forecasts 
to test our ability to trade as a going concern for at least the following 12 months based upon a 20% rise or fall in 
projected turnover without any reduction in overhead costs. In practice the Board believes that it can quickly realign 
overheads, in particular marketing spend, to allow for any reduced levels of activity within the business that may 
occur going forward. 
 
The Board believes that the use of the going concern basis of accounting is appropriate because there are no material 
uncertainties related to events or conditions that may cast significant doubt about the ability of the company to 
continue as a going concern.  
 
FUTURE OUTLOOK 
 
The IVA market has continued to grow strongly and ClearDebt has substantially increased the numbers of IVAs it 
has dealt with and continues to outperform the growth rate in the wider market as we continue to increase market 
share. 
 
Whilst we have seen a slowing in the rate of acquisition of DMP plans, our overall conversion of leads as a Group 
across all solutions remains excellent and we are merely experiencing a shift to a higher proportion of clients for 
whom an IVA is the more appropriate solution. The last quarter of the financial year produced a record number of 
IVAs for the Group and this figure has almost been achieved after only two months of the first quarter of the new 
financial year.  
 
Given the current economic outlook in the UK with unemployment showing no signs of falling together with further 
tax rises and public sector cuts to come in the short to medium term, I believe the Group is well placed for another 
highly profitable and successful year – without any further acquisitions. We remain delighted with our organic 
growth, but also are entirely open to the possibilities of acquisition, due to our unique Kaizen based scaleable 
business model. 
 
Once again I would like to pay tribute to all our employees who continue to offer the highest standards of service 
and commitment to all our clients at all levels and without whom the company would not be where we are today.  
 
David Emanuel Merton Mond FCA FCCA 
Chief Executive Officer 17
 
September 2010 ClearDebt Group plc 
DIRECTORS AND ADVISERS 
 
7 
 
 
DIRECTORS 
G Carey FCIB 
D E M Mond FCA FCCA 
D M Shalom ACA 
A F Smith  
A J Leon FCA 
 
SECRETARY 
D E M Mond FCA FCCA 
 
REGISTERED OFFICE 
Nelson House 
Park Road 
Timperley 
Altrincham  
Cheshire 
WA14 5BZ 
 
AUDITORS 
Baker Tilly UK Audit LLP 
Chartered Accountants and 
Registered Auditors 
3 Hardman Street 
Manchester  
M3 3HF 
 
BROKERS AND NOMINATED ADVISER 
Seymour Pierce Limited 
20 Old Bailey 
London   
EC4M 7EN 
 
REGISTRARS 
Neville Registrars 
Neville House 
18 Laurel Lane 
Halesowen 
West Midlands 
 
SOLICITORS 
Davies Arnold Cooper LLP 
6-8 Bouverie Street  
London EC4Y 8DD 
 
DWF LLP 
Centurion House  
129 Deansgate  
Manchester  
M3 3AA 
 
BANKERS 
Barclays Bank PLC 
1 Bridge Street 
Stockport 
Cheshire 
SK1 1XU 
 
The Royal Bank of Scotland PLC 
P O Box 157  
2 Chestergate  
Macclesfield  
SK11 6BQ  
 
 
  ClearDebt Group plc 
DIRECTORS’ REPORT 
 
8 
 
The Directors present their report and the financial statements of the Group for the year ended 30 June 2010. 
 
Principal Activities and Review of the Business 
The principal activity of the Group is the provision of financial advice and appropriate solutions to individuals 
experiencing personal debt problems. 
 
The principal activity of the Company is that of a holding company. 
 
A review of the Group’s activities and its future prospects is detailed in the Chairman’s Statement on page 2 and the 
Chief Executive’s Statement on pages 3 to 6. 
 
Results and Dividends 
The trading results for the year and the Group’s financial position at the end of the year are set out in the attached 
financial statements. 
 
The Directors do not recommend payment of a final dividend. (2009: nil) 
 
Share Capital 
The Company is aware of the following substantial interests in the ordinary share capital as at 17 September 2010.  
 
    Number of shares held % of Total 
 
D E M Mond   119,054,616 38.61 
O Mond    17,459,800 5.66 
S Mond   14,055,734 4.56 
A Mond    14,555,733 4.72 
D Murray   11,921,125 3.87 
Ms M Joseph   9,876,467 3.20 
 
The Directors are not aware of any other person who is beneficially interested in 3% or more of the issued share 
capital. 
 
Directors who held Office during the Year 
The Directors of the Company who held office during the year are as follows: 
 
G Carey FCIB (Non-Executive Chairman) 
D E M Mond FCA FCCA 
A F Smith  
D M Shalom (appointed 12 January 2010) 
A J Leon FCA (Non-Executive) 
 
Payment of Creditors 
It is the Group’s policy to settle the terms of payment with suppliers when agreeing the terms of the transaction, to 
ensure that suppliers are aware of these terms and abide by them. Trade creditor days for the Group at 30 June 2010, 
were 35 days (2009: 46 days). This represents the ratio, expressed in days, between the amounts invoiced to the 
Group in the period by its suppliers and the amounts due, at the year end, to trade creditors falling due for payment 
within one year.   
 
Charitable and Political Contributions 
The Group made no political contributions or donations to charities during the year (2009: £nil). 
 
 
  ClearDebt Group plc 
DIRECTORS’ REPORT 
 
9 
 
Employee Involvement 
The Group recognises and seeks to encourage the involvement of its employees, with the aim being the recruitment, 
motivation and retention of quality employees throughout the Group.  
 
The Group’s employment policies, including the commitment to equal opportunity, are designed to attract, retain 
and motivate employees regardless of sex, race, religion or disability. The Group is committed to ensuring and 
communicating the requirements for a safe and healthy working environment for all employees, consistent with 
health and safety legislation and, wherever practicable, gives full consideration to applications for employment from 
disabled persons. 
 
Going Concern 
As part of its going concern review the Board has followed the guidelines published by the Financial Reporting 
Council entitled “Going Concern and Liquidity Risk: Guidance for UK Companies 2009”.  The Board has prepared 
detailed financial forecasts and cash flows for the three years to 30 June 2013 and in drawing up these forecasts the 
Board has made assumptions based upon its view of the current and future economic conditions in the UK that will 
prevail over the forecast period - given that the business is likely to be solely focused on the UK market for the 
foreseeable future. The timing of the cash flows and covenants to the debt holders in respect of loans provided have 
been taken into consideration and in addition to the forecasts we have also produced sensitivities to these forecasts 
to test our ability to trade as a going concern for at least the following 12 months based upon a 20% rise or fall in 
projected turnover without any reduction in overhead costs. In practice the Board believes that it can quickly realign 
overheads, in particular marketing spend, to allow for any reduced levels of activity within the business that may 
occur going forward. 
 
The Board believes that the use of the going concern basis of accounting is appropriate because there are no material 
uncertainties related to events or conditions that may cast significant doubt about the ability of the company to 
continue as a going concern.  
 
Principal Risks and Uncertainties 
All businesses face a range of risks and uncertainties, being subject to risk factors from internal and external 
sources. The Board considers the likelihood and significance of risk factors when putting in place risk management 
procedures to ensure risk mitigation. 
 
The following are considered to be the key risks facing the Group:- 
 
1. Competition - the market for debt resolution solutions remains highly competitive. The Group seeks to 
manage the risk of losing referrers through providing innovative solutions supported by high quality 
delivery. The Group’s main marketing channel still continues to be the internet and the Group monitors 
closely the strategies of competitors and the prices paid in the market place and reacts appropriately 
where necessary.  
 
2. Credit risk – the Group’s credit risk is attributable to its trade receivables and is managed by daily 
monitoring of client’s payments into their programmes versus agreed contracted terms. 
 
3. Funding arrangements – the Group monitors cash flow as part of its normal activities. Cash flow 
positions are discussed with the Board on a monthly basis to ensure that all possible treasury benefits are 
being taken and facilities are available if necessary. Advertising and marketing spend is monitored 
closely as it is a key component of funding requirements. 
 
4. Economic environment – the current economic climate is extremely favourable and the market for 
indebted consumers is likely to grow in the next few years. 
 
5. Creditor Pressure – Creditors can restrict the market for personal debt resolutions by refusing to agree to 
proposals which they do not deem acceptable. This can have the effect of restricting approvals and 
therefore the timing of fees. The Group is actively involved in talking to creditors constantly to ensure 
that all Group products are in line with creditor approval criteria as much as possible.   
 
Risks associated with financial instruments entered into by the Group are detailed in note 20.  ClearDebt Group plc 
DIRECTORS’ REPORT 
 
10 
 
Statement as to Disclosure of Information to Auditors 
The directors who were in office on the date of approval of these financial statements have confirmed, as far as they 
are aware, that there is no relevant audit information of which the auditors are unaware. Each of the directors has 
confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves 
aware of any relevant audit information and to establish that it has been communicated to the auditor. 
 
Auditors 
Baker Tilly UK Audit LLP, Chartered Accountants, has indicated its willingness to continue in office and a 
resolution that they should be re-appointed as auditors will be put to the members at the annual general meeting. 
 
By order of the Board 
 
 
 
 
D E M Mond 
Company Secretary 
 
17 September 2010  ClearDebt Group plc 
CORPORATE GOVERNANCE 
 
11 
 
Principles of Corporate Governance 
 
The Group’s Board appreciates the value of good corporate governance not only in the areas of accountability and 
risk management but also as a positive contribution to business prosperity. It believes that corporate governance 
involves more than a simple “box ticking” approach to establish whether a company has met the principles 
(including those set out in the corporate governance guidelines for AIM companies published by the Quoted 
Companies Alliance in February 2007) of a number of specific rules and regulations. Rather the issue is one of 
applying corporate governance in a sensible and pragmatic fashion having regard to the individual circumstances of 
a particular company’s business. The key objective is to enhance and protect shareholder value.  
 
Board Structure 
 
The Board is responsible to shareholders for the proper management of the Group. A statement of Directors’ 
responsibilities in respect of the accounts is set out on page 13.   
 
The Non-Executive Directors have a particular responsibility to ensure that the strategies proposed by the Executive 
Directors are fully considered.   
 
To enable the Board to discharge its duties, all Directors have full and timely access to all relevant information and 
there is a procedure for all Directors, in furtherance of their duties, to take independent professional advice, if 
necessary, at the expense of the Group. The Board has a formal schedule of matters reserved to it and meets 
monthly. It is responsible for overall group strategy, approval of major capital expenditure projects and 
consideration of significant financing matters.   
 
The following Committees have been set up, which have written terms of reference and deal with specific aspects of 
the Group’s affairs.   
 
1. The Remuneration Committee, includes D E M Mond and the two Non-Executive Directors is responsible 
for making recommendations to the Board on the Company’s framework of executive remuneration and its 
cost.  The Committee determines the contract terms, remuneration and other benefits for each of the 
Executive Directors, including pension rights and compensation payments. The Board itself determines the 
remuneration of D E M Mond and the Non-Executive Directors. The Committee meets as required.  
 
2. The Audit Committee includes the two Non-Executive Directors.  Its prime tasks are to review the scope of 
the external audit, to receive regular reports from Baker Tilly UK Audit LLP, and to review the half-yearly 
and annual accounts before they are presented to the Board, focusing in particular on accounting policies 
and areas of management judgment and estimation. The Committee is responsible for monitoring the 
controls, which are in force to ensure the integrity of the information reported to the shareholders. The 
Committee acts as a forum for discussion of internal control issues and contribute to the Board’s review of 
the effectiveness of the Group’s internal control and risk management systems and processes. It advises the 
Board on the appointment of external auditors and on their remuneration for both audit and non-audit work, 
and discusses the nature and scope of the audit with the external auditors. It reviews and monitors the 
independence of the auditors especially with regard to non audit work. It meets at least twice a year 
including immediately before the submission of the annual and interim financial statements to the Board.   
 
Any new Non-Executive Directors will be asked to join both Committees.   
 
No formal nomination Committee exists in view of the stage of development of the Group. Instead appointments to 
the Board by the Chief Executive and other Executive Directors are discussed with the Non-Executive Chairman. 
Appointments are made after an evaluation of the skills, knowledge, and expertise required ensuring that the Board 
as a whole has the ability to ensure that the Group can continue to compete effectively in its market place. 
 
 
 
 
 
  ClearDebt Group plc 
CORPORATE GOVERNANCE 
 
12 
 
Internal Control 
The Directors are responsible for the Group’s system of internal control and reviewing its effectiveness. The Board 
has designed the Group’s system of internal control in order to provide the Directors with reasonable assurance that 
its assets are safeguarded, that transactions are authorised and properly recorded and that material errors and 
irregularities are either prevented or would be detected within a timely period. However, no system of internal 
control can eliminate the risk of failure to achieve business objectives or provide absolute assurance against material 
misstatement or loss.  The key elements of the control system in operation are: 
 
a. The Board meets regularly with a formal schedule of matters reserved to it for decision and has put in place 
an organisational structure with clear lines of responsibility defined and with appropriate delegation of 
authority;  
 
b. There are procedures for planning, approval and monitoring of capital expenditure and information systems 
for monitoring the Group’s financial performance against approved budgets and projections;  
 
The process adopted by the Group accords with the guidance contained in the document “Internal Control Guidance 
for Directors on the Combined Code” issued by the ICAEW. 
 
The Audit Committee receives reports from the external auditors on a regular basis and from Executive Directors of 
the Group. During the period, the Board has reviewed the effectiveness of the system of internal control as described 
above. The Board has considered whether the Group’s internal controls processes would be significantly enhanced 
by an internal audit function and has taken the view that at the Group’s current stage of development, this is not 
required. The Board will continue to review this matter each year. The Board receives periodic reports from all 
Committees. 
 
There are no significant issues disclosed in the financial statements for the period ended 30 June 2010 and up to the 
date of approval of the report and financial statements that have required the Board to deal with any related material 
internal control issues. 
 
Relations with Shareholders 
The Group values its dialogue with both institutional and private investors. Effective two-way communication with 
fund managers, institutional investors and analysts is actively pursued and this encompasses issues such as 
performance, policy and strategy. During the period the Directors have had meetings with analysts and institutions 
and will continue to do so. 
 
There is also an opportunity, at the Company’s Annual General Meeting for individual shareholders to raise general 
business matters with the full Board and notice of the Company’s Annual General Meeting is circulated to all 
shareholders at least 20 working days before such meeting. The Chairman of the Audit and Remuneration 
Committee will be available at the Annual General Meeting to answer questions. 
  ClearDebt Group plc 
STATEMENT OF DIRECTORS’ RESPONSIBILITIES 
IN RESPECT OF THE FINANCIAL STATEMENTS 
 
13 
 
The directors are responsible for preparing the Directors’ Report and the financial statements in accordance with 
applicable law and regulations. 
  
UK Company law requires the directors to prepare Group and Company Financial Statements for each financial 
year.  The directors are required by the AIM Rules of the London Stock Exchange to prepare Group financial 
statements in accordance with International Financial Reporting Standards ("IFRS")  as adopted by the European 
Union (“EU”) and have elected to prepare the company financial statements in accordance with United Kingdom 
Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 
  
The Group financial statements are required by law and IFRS adopted by the EU to present fairly the financial 
position and performance of the group; the Companies Act 2006 provides in relation to such financial statements 
that references in the relevant part of that Act to financial statements giving a true and fair view are references to 
their achieving a fair presentation. 
 
Under company law the directors must not approve the financial statements unless they are satisfied that they give a 
true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that 
period.  
  
In preparing each of the Group and Company financial statements, the directors are required to: 
  
a. select suitable accounting policies and then apply them consistently; 
  
b. make judgements and estimates that are reasonable and prudent; 
  
c.  for the Group financial statements, state whether they have been prepared in accordance with IFRSs 
adopted by the EU; and for the company financial statements state whether applicable UK accounting 
standards have been followed, subject to any material departures disclosed and explained in the Company 
financial statements; 
 
d. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 
Group and the Company will continue in business; 
 
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 
Group’s and the Company’s transactions and disclose with reasonable accuracy at any time the financial position of 
the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They 
are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention 
and detection of fraud and other irregularities. 
 
The directors are responsible for the maintenance and integrity of the corporate and financial information included 
on the ClearDebt Group plc website. Legislation in the United Kingdom governing the preparation and 
dissemination of financial statements may differ from legislation in other jurisdictions. 
  ClearDebt Group plc 
DIRECTORS’ REMUNERATION REPORT 
 
14 
 
The Board’s Remuneration Committee, which currently comprises Gerald Carey (Non-Executive Chairman), 
Anthony Leon ( Non-executive director) and David Mond (Chief Executive Officer), makes recommendations to the 
Board within agreed terms of reference in determining specific remuneration packages for each of the Directors, 
including pension rights. 
 
Members of the Committee who have a personal financial interest in the matters to be decided are not involved in 
decisions.  In arriving at its recommendations, the Committee has access to professional advice from both within and 
outside the Company.   
 
Remuneration Policy 
Each remuneration package is reviewed against a background of published comparative information on the 
remuneration of Executive Directors in similar positions, taking into account the industry, the region of 
employment, the type of work and the size of the Company.  The extent to which the recommended remuneration is 
above or below average takes account of the Director’s qualifications and length of service with the Company, the 
Director’s actual performance and the performance of the Company.  This will remain the policy for forthcoming 
years. 
 
Directors’ Emoluments 
The emoluments of the Directors during the financial year ended 30 June 2010 were as follows: 
 
    2010 2009 
   2010 Total Total 
  2010 Pensions/ Salary & Salary & 
  Salary Benefits Benefits Benefits 
  £’000 £’000 £’000 £’000 
Executive Directors 
David Mond (Chief Executive) 72 - 72 18 
David Shalom (Finance Director) 35 - 35 - 
Andrew Smith (Marketing Director) 48 - 48 20 
 
Non-Executive Directors 
Gerald Carey (Chairman) 18 - 18 18 
Anthony Leon 12 - 12 12 
  ___ ___ ___ ___ 
Aggregate remuneration 185 - 185 68 
  ___ ___ ___ ___ 
  
David Shalom was appointed Group Finance Director on 12 January 2010 and his emoluments are included from 
this date. In 2009 £28,000 was re-charged to Hodgsons for services provided by Andrew Smith. No services have 
been provided to Hodgsons in the current year.  
 
The present Directors’ positions are currently not pensionable. 
 
Options 
Options have been granted to directors and employees under an EMI scheme.  The granting of options ensures that 
the holders are incentivised to concentrate on growing shareholder value.  During the year 13,062,500 options were 
granted and 1,312,500 options lapsed, leaving options outstanding over 11,750,000 ordinary shares at an exercise 
price of 2p per ordinary share.   
 
The mid-market price of the Company’s shares on 30 June 2010 was 1.84p and the high and low share prices during 
the year were 1.1p and 2.43p respectively.   
 
 
 
 
  ClearDebt Group plc 
DIRECTORS’ REMUNERATION REPORT 
 
15 
 
Directors’ Service Agreements 
Andrew Smith has a service agreement subject to 12 months notice. David Mond and Gerald Carey both have 
agreements subject to 6 months notice. A service agreement is presently being drawn up for David Shalom. 
 
Directors’ Interests 
The interests of the Directors in the ordinary shares of the Company as at 30 June 2010 and 17 September 2010 were 
as follows:- 
 
 Ordinary Shares                                                                   
 At £0.005p each         At £0.02p each 
 At 30 June At 30 June 
 2010 2009 
David Mond 119,054,616 119,054,616 
Andrew Smith 6,750,000 6,750,000 
David Shalom * 2,150,000 - 
Gerald Carey 1,020,000 1,020,000 
Anthony Leon 500,000 500,000 
 
* David Shalom was appointed on 12 January 2010 and his interests are shown from the date of appointment. 
 
In April 2010 1 new ordinary share of 0.5p and a 1.5p deferred share were issued to shareholders to replace the old 
2p ordinary share. The directors hold the same number of Deferred ordinary shares as 0.5p shares shown above. 
 
The directors held the following interests in share options as at 30 June 2010 and 17 September 2010. 
 
  At 30 June At 30 June Option Date Expiry 
 Scheme 2010 2009 Price Exercisable Date 
 
 
David Mond EMI 375,000 - 2.0p 07.10.12 07.10.19 
Andrew Smith EMI 375,000 - 2.0p 07.10.12 07.10.19 
David Shalom EMI 375,000 - 2.0p 07.10.12 07.10.19 
 
 
  ClearDebt Group plc 
INDEPENDENT AUDITOR’S REPORT  
TO THE MEMBERS OF CLEARDEBT GROUP PLC 
 
16 
 
We have audited the Group and parent company financial statements (“the financial statements”) which comprise 
the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, Consolidated Statement 
of Financial Position, the Company Balance Sheet, the Consolidated Statement of Cash Flow, the Consolidated 
Statement of Changes in Equity and the related notes. The financial reporting framework that has been applied in the 
preparation of the group financial statements is applicable law and International Financial Reporting Standards 
(IFRSs) as adopted by the European Union.  The financial reporting framework that has been applied in the 
preparation of the parent company financial statements is applicable law and United Kingdom Accounting Standards 
(United Kingdom Generally Accepted Accounting Practice)  
 
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006.  Our audit work has been undertaken so that we might state to the company’s members those 
matters we are required to state to them in an auditor’s report and for no other purpose.  To the fullest extent 
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s 
members as a body, for our audit work, for this report, or for the opinions we have formed. 
Respective responsibilities of directors and auditors 
As more fully explained in the Directors’ Responsibilities Statement set out on page 13 the directors are responsible 
for the preparation of the financial statements and for being satisfied that they give a true and fair view.  Our 
responsibility is to audit the financial statements in accordance with applicable law and International Standards on 
Auditing (UK and Ireland).  Those standards require us to comply with the Auditing Practices Board’s (APB’s) 
Ethical Standards for Auditors. 
 
Scope of the audit of the financial statements 
A description of the scope of an audit of financial statements is provided on the APB’s website at 
www.frc.org.uk/apb/scope/UKNP. 
 
Opinion on the financial statements 
In our opinion  
• the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs 
as at 30 June 2010 and of the Group’s profit for the year then ended; 
• the group financial statements have been properly prepared in accordance with IFRSs as adopted by the 
European Union;  
• the parent company financial statements have been properly prepared in accordance with United Kingdom 
Generally Accepted Accounting Practice; and 
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. 
 
Opinion on other matters prescribed by the Companies Act 2006 
In our opinion the information given in the Directors’ Report for the financial year for which the financial 
statements are prepared is consistent with the financial statements. 
 
 
 
 
 
 
 
 
 
 
  ClearDebt Group plc 
INDEPENDENT AUDITOR’S REPORT  
TO THE MEMBERS OF CLEARDEBT GROUP PLC 
 
17 
 
Matters on which we are required to report by exception 
 
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to 
you if, in our opinion: 
 
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit 
have not been received from branches not visited by us; or 
• the parent company financial statements are not in agreement with the accounting records and returns; or 
• certain disclosures of directors’ remuneration specified by law are not made; or 
• we have not received all the information and explanations we require for our audit.  
 
 
 
GRAHAM BOND FCA (Senior Statutory Auditor) 
For and on behalf of BAKER TILLY UK AUDIT LLP, Statutory Auditor  
Chartered Accountants 
3 Hardman Street 
Manchester 
M3 3HF 
 
 
17 September 2010  ClearDebt Group plc 
CONSOLIDATED INCOME STATEMENT 
For the year ended 30 June 2010 
 
18 
 
   Separately 
  Before separately disclosable items 
  disclosable items (Note 5) Total Total 
  2010 2010 2010 2009 
 Notes £ £ £ £ 
Revenue 
- ongoing 3 4,032,905 - 4,032,905 3,386,935 
- acquisitions  2,601,090 - 2,601,090 - 
  _________ _________ _________ _________ 
  6,633,995 - 6,633,995 3,386,935 
 
Cost of sales  (3,333,307) - (3,333,307) (1,950,570) 
  _________ _________ _________ _________ 
Gross profit  3,300,688 - 3,300,688 1,436,365 
 
Administrative expenses  (1,293,371) (449,473) (1,742,844) (693,335) 
Share based payment  17 (42,573) - (42,573) - 
  _________ _________ _________ _________ 
Profit before interest, tax,  
depreciation and amortisation  1,964,744 (449,473) 1,515,271 743,030 
 
Depreciation 11 (102,875) - (102,875) (90,279) 
Amortisation 10 (993,980) - (993,980) (76,623) 
Gain on bargain purchase 18 - 252,914 252,914 - 
  _________ _________ _________ _________ 
Profit from operations 3 & 4 867,889 (196,559) 671,330 576,128 
 
Finance costs 6 (128,314) (78,346) (206,660) (126,600) 
Finance income  1,039 - 1,039 11,395 
  _________ _________ _________ _________ 
Profit before taxation  740,614 (274,905) 465,709 460,923 
 
Taxation 8 (200,447) 76,973 (123,474) (53,861) 
  _________ _________ _________ _________ 
Profit after taxation for year  540,167 (197,932) 342,235 407,062 
  _________ _________ _________ _________ 
Amount attributable to: 
Owners of the parent     342,235 407,062 
    _________ _________ 
 
Earnings per ordinary share - basic (pence)      9                      0.18p                (0.07p)                  0.11p              0.13p 
 
Earnings per ordinary share - diluted (pence)   9                      0.18p                (0.07p)                  0.11p              0.13p   
  _________ _________ _________ _________ 
 
 
The results for the period are derived from continuing activities.  
  ClearDebt Group plc 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME  
For the year ended 30 June 2010 
 
19 
 
 
  2010 2009 
  £ £ 
 
Profit for the year  342,235 407,062 
 
Other comprehensive income net of tax  - - 
  _______ _______ 
 
Total comprehensive income for the year  342,235 407,062 
  _______ _______ 
Attributable to: 
Owners of the parent  342,235 407,062 
  _______ _______ ClearDebt Group plc 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
As At 30 June 2010      Company Number 02441375 
 
20 
 
 
  2010 2009 
 Notes £ £ 
Assets 
Non-current assets 
Intangible assets 10 6,765,047 4,537,299 
Property, plant and equipment 11 227,992 189,800 
Deferred taxation  15 163,720 347,940 
  __________ _________ 
  7,156,759 5,075,039 
Current assets 
Trade and other receivables 12 1,153,226 729,310 
Corporation tax receivable  8,372 - 
Cash and cash equivalents  541,504 584,593 
  __________ _________ 
  1,703,102 1,313,903 
  __________ _________ 
Total assets  8,859,861 6,388,942 
  __________ _________ 
 
Equity and liabilities 
Equity 
Issued capital 16 6,166,812 6,166,812 
Share premium account  279,948 279,948 
Share based compensation  140,387 97,814 
Other reserves  96,495 - 
Retained losses  (1,667,021) (2,009,256) 
  __________ _________ 
Total equity  5,016,621 4,535,318 
  __________ _________ 
 
Current liabilities 
Trade and other payables 13 1,009,151 639,807 
Corporation tax payable 13 - 13,817 
  __________ _________ 
  1,009,151 653,624 
Non-current liabilities 
Financial liabilities 14 2,765,350 1,200,000 
Deferred taxation 15 68,739 - 
  __________ _________ 
Total liabilities  3,843,240 1,853,624 
  __________ _________ 
Total equity and liabilities  8,859,861 6,388,942 
  __________ _________ 
 
The financial statements were approved by the Board of Directors and authorised for issue on 17 September 2010 
and are signed on its behalf by: 
 
 
 
 
D E M Mond 
Director  ClearDebt Group plc 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
For the year ended 30 June 2010 
 
21 
 
 
 Share Share   Share Based Other Retained Total 
 Capital Premium Compensation Reserve Losses Equity 
 £ £ £ £ £ £ 
 
Balance as at 1 July 2008 6,091,812 279,948 97,814 - (2,416,318) 4,053,256 
 
Share issue 75,000 - - - - 75,000 
       
Total transactions with owners  
in their capacity as owners 75,000 - - - - 75,000 
 
Total comprehensive income 
for the year  - - - - 407,062 407,062 
 ________ ________ ________ _______ ________ ________ 
 
Balance as at 30 June 2009 6,166,812 279,948 97,814 - (2,009,256) 4,535,318 
 
Equity component on issue of  
convertible loan notes - - - 96,495 - 96,495 
  
Share based compensation - - 42,573 - - 42,573 
  
Total comprehensive income 
for the year - - - - 342,235 342,235
 ________ ________ ________ _______ _________ ________ 
 
Balance as at 30 June 2010 6,166,812 279,948 140,387 96,495 (1,667,021) 5,016,621
 ________ ________ ________ _______ _________ ________ 
 
Share capital 
Share capital has arisen on the issue of shares and represents the nominal value of shares issued. 
 
Share premium 
The share premium account arose from the issue of equity shares above the nominal value less share issue costs. 
 
Share based compensation  
This reserve is the result of the Company’s grant of equity settled share options and warrants and measured in 
accordance with IFRS2 share-based payment transactions. 
 
Other reserve   
This reserve is the result of the Company’s issue of convertible loan notes in April 2010 in accordance with IAS 32 
– Financial Instruments: Presentation. 
 
Retained losses 
The retained losses reflect losses incurred to date. 
  ClearDebt Group plc 
CONSOLIDATED STATEMENT OF CASH FLOWS 
For the year ended 30 June 2010 
 
22 
 
   
 Notes 2010 2009 
  £ £ 
Cash flow from continuing operating activities 
Profit before taxation  465,709 460,923 
Depreciation of property, plant and equipment  102,875 90,279 
Amortisation of intangible assets  993,980 76,623 
Gain on bargain purchase   (252,914) - 
Share based payment  42,573 -  
Increase in trade and other receivables  (423,916) (256,486) 
Finance costs  206,660 126,600 
Finance income  (1,039) (11,395) 
Increase/(decrease) in trade and other payables  332,252 (105,737) 
  _________ _________ 
Cash generated by operations  1,466,180 380,807 
Corporation tax refund  10,317 123,585 
  _________ _________ 
 Net cash generated by operating activities  1,476,497 504,392 
 
Investing activities 
Acquisition of business and assets 18 (2,700,000) (10,612) 
Acquisition of intangibles  (143,728) (23,496) 
Acquisition of property, plant and equipment  (144,251) (36,023) 
Finance income  1,039 11,395 
Sale of property, plant and equipment  3,184 - 
  _________ _________ 
Net cash used in investing activities  (2,983,756) (58,736) 
 
Financing activities 
Proceeds from issue of convertible loan notes   1,800,000 - 
Issue costs   (184,379) - 
Interest on loans  (151,451) (126,600) 
  _________ _________ 
Cash generated by/(used) in financing activities  1,464,170 (126,600) 
 
(Decrease)/increase in cash and cash equivalents  (43,089) 319,056 
Opening cash and cash equivalents  584,593 265,537 
  _________ _________ 
Closing cash and cash equivalents  541,504 584,593 
  _________ _________  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
23 
 
1. General information 
 
ClearDebt Group plc is a company incorporated and domiciled in the United Kingdom under the Companies Act 
2006.   
 
Interpretations of standards  
 
The following accounting standards and interpretations became effective during the period: 
 
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors – improvements May 2008 
IAS 10 Events after the Reporting Period – improvements May 2008 
IAS 27 Consolidated and Separate Financial Statements – Amendment; Cost of an investment in subsidiary, 
jointly controlled entity or associate 
IFRS 2 Share based Payments – Amendment; Vesting conditions and cancellations  
IFRS 3 Business Combinations (Revised) with consequential amendments to IAS 27 Consolidated and Separate 
Financial Statements, IAS 28 Investments in Associates and IAS 31 Investments in Joint Ventures 
IFRS 5 Non-current assets held for sale and discontinued operations - improvements April 2009 
IFRS 7 Financial Instruments: Disclosures – Amendment; Improving financial instrument disclosures 
IFRS 7 Financial Instruments: Disclosures – Amendment; Reclassification of Financial Assets – Effective date 
and transition 
IFRS 8 Operating Segments 
IFRIC 17  Distributions of Non-cash Assets to Owners 
IFRIC 18  Transfers of Assets from Customers 
 
The application of these standards has not led to any retrospective statements or prior period adjustments. 
 
Amendments arising from the improvements project (May 08) 
 
IAS 1 Presentation of Financial Statements (Revised) with consequential amendments to IAS 7 Statement of 
Cash Flows  
IAS 8   Accounting Policies, Changes in Accounting Estimates and Errors 
IAS 16 Property, Plant and Equipment  
IAS 18 Revenue  
IAS 19 Employee Benefits  
IAS 23  Borrowing Costs  
IAS 27 Consolidated and Separate Financial Statements 
IAS 28 Investments in Associates  
IAS 31 Investments in Joint Ventures  
IAS 32 Financial Instruments Presentation  
IAS 36 Impairment of assets  
IAS 38 Intangible assets  
IAS 39 Financial Instruments: Recognition and Measurement  
IFRS 5 Non-current assets held for sale and discontinued operations  
IFRS 7 Financial Instruments: Disclosures  
 
Amendments arising from the improvements project (April 09) 
IAS 38 Intangible assets  
IFRS 2 Shared based Payment  
IFRIC 9 Reassessment of Embedded Derivatives 
 
  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
24 
 
1. General information (continued) 
 
At the date of the authorisation of the financial statements, the following standards and interpretations, which have 
not been applied in the financial statements, were in issue but not yet effective: 
 
IFRS 1 First-time adoption of IFRS 
IFRS 1 First-time adoption of IFRS – Amendments; Additional Exemptions for First Time Adopters and Limited 
Exemption from Comparative IFRS 7 Disclosures for First Time Adopters 
IFRS 2 Shared based Payments – Amendment; Cash-settled Share Based Payment Transactions 
IFRS 3 Business Combinations 
IFRS 7 Financial Instruments: Disclosures  
IFRS 9 Financial Instruments  
IAS 24 Revised IAS 24 Related Party Disclosures 
IAS 27 Consolidated and Separate Financial Statements 
IAS 32 Financial Instruments Presentation – Amendment; Classification of Rights issues 
IFRIC 19  Extinguishing Financial Liabilities with Equity Instruments 
 
Amendments arising from the improvements project (April 2009) issued not yet effective 
 
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations – improvements April 2009 
IFRS 8 Operating Segments – improvements April 2009 
IAS 1 Presentation of Financial Statements 
IAS 7 Statement of Cash Flows 
IAS 17 Leases 
IAS 18 Revenue  
IAS 36 Impairment of assets  
IAS 39     Financial Instruments  
 
The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no 
material impact on the financial information when the relevant standards and interpretations come into effect. 
 
The Group’s functional currency is £ sterling. 
 
2. Significant Accounting Policies 
 
Basis of Preparation 
The financial statements have been prepared in accordance with International Financial Reporting Standards, as 
adopted by the European Union (IFRS) and the requirements of the Companies Act 2006 applicable to companies 
reporting under IFRS. 
 
The financial statements have been prepared on a going concern basis for the reasons outlined in the Directors’ 
Report on page 6. 
 
The financial statements have been prepared on the historic cost basis.  The principal accounting policies adopted 
are set out below. 
 
Critical Accounting Estimate and Judgements 
The preparation of the financial information in conformity with IFRS requires management to make judgements, 
estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, 
income and expenses.  The estimates and associated assumptions are based on historical experience and various 
other factors that are believed to be reasonable under the circumstances, the results of which form the basis of 
making the judgements about carrying values of assets and liabilities that are both readily apparent from other 
sources.  Actual results may differ from these estimates.  The estimates and underlying assumptions are reviewed on 
an ongoing basis.  Revisions to accounting estimates are recognised in the period in which the estimate is revised if  
  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
25 
 
2. Significant Accounting Policies (continued) 
 
the revision affects only that period or in the period of the revision and future periods in the revision affects both 
current and future periods. 
 
The principal balances that have been estimated relate to:- 
- estimates of future cash flows for the goodwill impairment review ( see note 10) 
- estimates in respect of the future recoverability of the deferred tax asset in respect of losses brought 
forward ( see note 15) 
- estimates of the fair value of intangible assets acquired ( see note 18) 
- estimates of future cash flows linked to contingent consideration in respect of acquisitions 
 
Basis of Consolidation 
Where the company has the power, either directly or indirectly, to govern the financial and operating policies of 
another entity or business so as to obtain benefits from its activities, it is classified as a subsidiary.  The consolidated 
financial statements present the results of the company and its subsidiaries (“the Group”) as if they formed a single 
entity.  Inter-company transactions are therefore eliminated in full. 
 
Business Combinations 
The consolidated financial statements incorporate the results of business combinations using the purchase method.  
In the consolidated statement of financial position, the acquiree’s identifiable assets, liabilities and contingent 
liabilities are initially recognised at their fair values at the acquisition date.  The results of acquired operations are 
included in the consolidated income statement from the date on which control is obtained. 
 
Goodwill represents the excess of the cost of a business combination over the interest in the fair value of identifiable 
assets, liabilities and contingent liabilities acquired.  Cost comprises the fair values of assets given, liabilities 
assumed and equity instruments issued, plus any direct costs of acquisition. 
 
Goodwill 
Goodwill arising on acquisition of subsidiaries or business is recognised as a separate asset on the statement of 
financial position after the recognition at fair value of any other intangible assets identified at the time of 
acquisition. 
 
Goodwill is capitalised as an intangible asset with any impairment in carrying value being recognised immediately 
and charged to the consolidated income statement.  Where the fair value of identifiable assets, liabilities and 
contingent liabilities exceeds the fair value of consideration paid, the excess is credited in full to the ground income 
statement on the acquisition date.  The Group carries out annual impairment tests for goodwill.  Impairment losses 
in respect of goodwill are not reversed. 
 
Negative Goodwill 
Negative goodwill arising on acquisition of subsidiaries or business is recognised in full on the date of acquisition 
and is recorded in the consolidated income statement. 
 
Impairment 
At each reporting date, the Group reviews the carrying amounts of its intangibles other than goodwill and property, 
plant and equipment to determine whether there is any indication that those assets have suffered an impairment loss.  
If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the 
impairment loss (if any).  Where the asset does not generate cash flows that are independent of other assets, the 
Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. 
 
Recoverable amount is the higher of fair value less costs to sell and value is use.  In assessing value in use, the 
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current 
market assessments of the time value of money and the risks specific to the asset for which the estimates of future 
cash flows have been adjusted. 
  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
26 
 
2. Significant Accounting Policies (continued) 
 
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the 
carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount, in which case the 
impairment loss is treated as expenses in the consolidated income statement.  
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is 
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not 
exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset 
(cash-generating unit) in prior years.  A reversal of an impairment loss is recognised as income immediately, unless 
the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a 
revaluation increased. 
 
Other Intangible Assets 
Internal and externally acquired intangible assets are initially recognised at cost and subsequently amortised over 
their useful economic lives.  The amortisation expense is shown separately on the face of the Consolidated Income 
Statement.  The significant intangibles recognised by the Group, their useful economic lives and the methods used 
to determine the cost of intangibles acquired in a business combination are as follows:- 
 
Development costs   - 4 years straight line 
Software development costs  - 4 years straight line 
Intangible assets - Debt management back books - 1 year straight line 
Intangible assets – Insolvency back books  - 3 years straight line  
Other intangibles   - 1 year straight line 
 
Expenditure arising from the Group’s development costs and software development is recognised only if all of the 
following conditions are met: 
 
- an asset is created that can be identified; 
- it is probable that the asset created will generate future economic benefits; 
- the development cost of the asset can be measured reliably; 
- the Group has the intention to complete the asset and the ability and intention to use or sell it; 
- sufficient resources are available to complete the development and to either sell or use the asset. 
 
Where the criteria have not been achieved, software development expenditure is recognised as an expense in the 
period in which it is incurred. 
 
Revenue 
Revenue is recognised at the fair value of amounts receivable or received in relation to a range of services provided 
to clients as follows: 
 
Individual Voluntary Arrangements (IVA) 
Fees are earned for arranging and administering IVAs on behalf of individuals experiencing debt problems.  
Generally, revenue is accrued based upon the stage of completion of specific client contracts where the outcome can 
be assessed with reasonable certainty and the value for that service has been agreed between the Group and the 
client. 
 
Nominee fees 
Nominee fees are recognised upon the approval of an IVA proposal at a creditors meeting. 
Supervisory fees 
Supervisory fees are accrued on a monthly basis over the duration of the arrangement as the service is provided. 
 
Protected Trust Deeds (PTD) 
Fees earned in respect of PTDs are recognised when received. 
 
   ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
27 
 
2. Significant Accounting Policies (continued) 
 
Debt management services 
Fees are receivable for the management of debts on behalf of clients experiencing financial difficulties.  Fees are 
recognised upon receipt of client payments on the basis that these arrangements are informal and there is no 
certainty that economic benefits will accrue until a payment is received. 
Commissions 
The Group also receives commission income from the referral of loans and other products.  Commissions are 
recorded as they become due. 
 
Prepayment Card services 
The Group receives a revenue share from the issue and usage charges in respect of the ClearCash prepaid 
MasterCard. Income and charges are recognised in the period in which they were incurred by the card user.   
 
Property, Plant and Equipment 
All property, plant and equipment are initially recorded at cost.  Depreciation is provided at rates calculated to write 
off the cost less residual value of each asset over its expected useful life, as follows: 
 
Leasehold improvements  - 25% straight line 
Fixtures and fittings   - 25% straight line 
 
Residual value and estimated remaining lives are reviewed annually. 
 
Provisions 
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event 
which it is probable will result in an outflow of economic benefits that can be reliably estimated.  If the effect of 
time value of money is material, provisions are determined by discounting the expected future cash flows as a pre-
tax rate that reflects current market assessments of the time value of money. 
 
Share-based Compensation 
Equity-settled share-based payments are measured at the fair value of services received in exchange for the grant of 
options or warrants.  The fair value determined is recognised as an expense if it relates to trading activities or in the 
share premium account if it relates to the issue of equity instruments.  The total amount to be expensed over the 
vesting period is determined by reference to the fair value of the options or warrants granted, excluding the impact 
of any non-market vesting conditions (for example, profitability and growth targets).  Non-market vesting 
conditions are included in the assumptions about the number of options or warrants that are expected to become 
exercisable.  At each reporting date, the Group revises its estimates of the number of options or warrants that are 
expected to become exercisable.  It recognises the impact of the revision of original estimates, if any, in the income 
statement, and a corresponding adjustment to reserves over the remaining vesting period. 
 
The proceeds received net of any attributed transaction costs are credited to share capital (nominal value) and share 
premium when the options or warrants are exercised. 
 
Non vesting conditions which are not satisfied during the vesting period, are treated as cancellations and any 
remaining expense is accelerated in the period of failure. 
 
Share based payments associated with share options granted to employees of subsidiaries of the parent company are 
treated as an expense of the subsidiary company to be settled by equity of the parent company. The share based 
payment expense increases the value of the parent company’s investment in the subsidiaries and is credited to the 
Share based payment reserve. 
 
Fair value is measured by use of the Black-Scholes model. The expected life used in the model has been adjusted, 
based on management’s best estimate, for the effect of non-transferability, exercise restrictions and behavioural 
considerations. 
  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
28 
 
2. Significant Accounting Policies (continued) 
 
Leasing 
Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant 
lease. 
 
Financial Instruments 
Financial assets and financial liabilities are recognised in the statement of financial position when the Group has 
become a party to the contractual provisions of the instrument. 
 
Trade and other receivables 
Trade receivables are classified as loans and other receivables in accordance with IAS 39, measured on initial 
recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method.  
Appropriate allowances for estimated irrecoverable amounts are recognised in the consolidated income statement 
when there is objective evidence that the asset is impaired.  The allowance recognised is measured as the difference 
between the asset’s carrying amount and the present value of estimated future cash flows discounted at the effective 
interest rate computed at initial recognition. 
 
Cash and cash equivalents 
Cash and cash equivalents comprise cash at bank and in hand, deposits held at call with banks and other short-term 
highly liquid investments with original maturities of three months or less and are classified as other loans and 
receivables in accordance with IAS 39. 
 
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of amounts as defined above. 
 
Financial liabilities 
Financial liabilities are classified according to the substance of the contractual arrangements entered into.  An 
instrument will be classified as a financial liability when there is a contractual obligation  to deliver cash or another 
financial asset to another enterprise. 
 
Trade and other payables  
Trade payables are initially recognised at fair value and subsequently at amortised cost using the effective interest 
method. They are classified as “Other liabilities” in accordance with IAS 39. 
 
Borrowings 
Interest-bearing bank loads and overdrafts are classified as “other liabilities” in accordance with IAS 39.  They are 
initially recorded at their fair value, net of any issue costs associated with borrowings.  Borrowings are subsequently 
stated at amortised cost. 
 
Finance charges, including premiums payable on settlement or redemption, are expensed to the income statement 
over the term of the instrument using an effective rate of interest and are added to the carrying amount of the 
instrument to the extent that they are not settled in the period in which they arise. 
 
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the 
liability for at least 12 months after the reporting date. 
 
Secured Convertible Loan notes 
Convertible loan notes are regarded as compound instruments, consisting of a liability component and an equity 
component. At the date of issue, the fair value of the liability component is estimated using the prevailing market 
interest rate for similar non-convertible debt. The difference between the proceeds of issue of the convertible loan 
notes and the fair value assigned to the liability component, representing the embedded option to convert the 
liability into equity of the Group, is included in equity. 
 
   ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
29 
 
2. Significant Accounting Policies (continued) 
 
Issue costs are apportioned between the liability and equity components of the convertible loan notes based on their 
relative carrying amounts at the date of issue.  The portion relating to the equity component is charged directly 
against equity. 
 
The interest expense on the liability component is calculated by applying the prevailing market interest rate for 
similar non-convertible debt to the instrument. The difference between this amount and the interest paid is added to 
the carrying value of the convertible loan note. 
 
Taxation 
The tax expense represents the sum of the current tax expense and deferred tax expense.  Taxable losses differ from 
net profit as reported in the statement of comprehensive income because it excludes items of income or expense that 
are taxable or deductible in other years and it further excludes items that are next taxable or deductible.  The 
Group’s liability for current tax is calculated by using tax rates that have been enacted or substantively enacted by 
the reporting date. 
 
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets 
and liabilities in the financial statements are the corresponding tax bases used in the computation of taxable profit, 
and is accounted for using the balance sheet liability method.  Deferred tax liabilities are recognised for all taxable 
temporary differences  and deferred tax assets are recognised to the extent that it is probably that taxable profits will 
be available against which the deductible temporary differences can be utilised.  Such assets and liabilities are not 
recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition 
(other than in a business combination) of other assets and liabilities in a transaction which affects neither the tax 
profit nor the accounting profit. 
 
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the 
liability is settled based upon tax rates that have been exacted or substantively enacted by the reporting date.  
Deferred tax is charged or credited in the income statement, except when it relates to items credited or charged 
directly to equity, in which case the deferred tax is also dealt with in equity. 
 
Segmental Reporting  
An operating segment is a component of an entity: 
 
a) That engages in business activities from which it may earn revenues and incur expenses (including 
revenues and expenses relating to transactions with other components of the same entity),  
b) Whose operating results are regularly reviewed by the entity’s chief operating decision maker to make 
decisions about resources to be allocated to the segment, and 
c) For which discrete financial information is available. 
  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
30 
 
3. Segmental Information 
 
The Group’s total income, profit before taxation and net assets were all derived from its principal activities being 
the provision of IVA and other financial advice and appropriate solutions to individuals experiencing personal debt 
problems.  All the Group’s activities were undertaken wholly in the United Kingdom. 
 
 
Year ended 30 June 2010 
  Debt Total  Debt Total 
 Insolvency Management 2010 Insolvency Management 2009 
 £ £ £ £ £ £ 
 
Revenue 
- Ongoing 1,444,335 2,588,570 4,032,905 941,491 2,445,444 3,386,935 
- Acquisition  1,964,038 637,052 2,601,090 - - - 
 _________ _________ _________ _________ _________ _________ 
 
Total Revenue 3,408,373 3,225,622 6,633,995 941,491 2,445,444 3,386,935 
 
Cost of sales (1,522,269) (1,811,038) (3,333,307) (463,787) (1,486,783) (1,950,570) 
 _________ _________ _________ _________ _________ _________ 
 
Gross Profit  1,886,104 1,414,584 3,340,688 477,704 958,661 1,436,365 
 
Administrative expenses (701,513) (591,858)    (1,293,371) (258,926) (511,909) (770,835) 
Share based payment  (19,579) (22,994) (42,573) - - - 
Separately disclosable items (363,543) (85,930) (449,473) 77,500 - 77,500 
 ________ _________ _________ _________ _________ _________ 
Profit before interest, tax 
Depreciation and Amortisation  801,469 713,802 1,515,271 296,278 446,752 743,030 
 
Depreciation (30,307) (72,568) (102,875) (30,508) (59,771) (90,279) 
Amortisation (468,193) (525,787) (993,980) (65,373) (11,250) (76,623) 
Separately disclosable items 202,914 50,000 252,914 - - - 
 ________ _________ _________ _________ _________ _________ 
 
Profit from operations  505,883 165,447 671,330 200,397 375,731 576,128 
 
Finance costs (12,801) (115,513) (128,314) - (126,600) (126,600) 
Finance income 1,039 - 1,039 11,395 - 11,395 
Separately disclosable items (54,776) (23,570) (78,346) - - - 
 _________ _________ _________ _________ _________ _________ 
 
Profit before taxation 439,345 26,364 465,709 211,792 249,131 460,923 
  
Taxation (116,093) (7,381) (123,474) 53,266 (107,127) (53,861) 
 _________ _________ _________ _________ _________ _________ 
 
Profit after tax 323,252 18,983 342,235 265,058 142,004 407,062 
 _________ _________ _________ _________ _________ _________  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
31 
 
3. Segmental Information (continued) 
 
Net operating assets are reconciled to equity funds as follows: 
 
  2010 2009 
  £ £ 
Gross assets 
Insolvency  6,752,690 4,674,784 
Debt management  2,107,171 1,714,158 
  _________ _________ 
  8,859,861 6,388,942 
  _________ _________ 
Gross liabilities  
Insolvency  2,597,551 413,347 
Debt management  1,245,689 1,440,277 
  _________ _________ 
  3,843,240 1,853,624 
  _________ _________ 
Capital expenditure to acquire property, plant and equipment 
Insolvency  86,337 11,715 
Debt management  57,914 24,308 
  _________ _________ 
  144,251 36,023 
  _________ _________ 
Capital expenditure to acquire intangible assets 
Insolvency   2,260,728 23,496 
Debt management  961,000 - 
  _________ _________ 
  3,221,728 23,496 
  _________ _________ 
Depreciation of property, plant and equipment 
Insolvency  30,307 30,508 
Debt management  72,568 59,771 
  _________ _________ 
  102,875 90,279 
  _________ _________ 
Amortisation of intangible assets 
Insolvency  468,193 65,373 
Debt management  525,787 11,250 
  _________ _________ 
  993,980 76,623 
  _________ _________ 
 
IFRS 8 "Operating Segments" 
IFRS 8 has been adopted during the year.  Under IFRS 8, the Group is required to identify its operating segments on 
the basis of internal reports about segments of the Group that are regularly reviewed by the chief operating decision 
maker to allocate resources and assess their performance.  The chief operating decision maker has been identified as 
the Board of ClearDebt Group plc, led by the Chairman. 
  
The adoption of this standard has not resulted in any change to the operating segments previously disclosed by the 
Group. 
 
 
  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
32 
 
4.   Profit from Operations 
  2010 2009 
  £ £ 
Profit from operations is stated after charging: 
Depreciation of owned assets  102,875 90,279 
Amortisation  993,980 76,623 
Share based payment   42,573 - 
Rentals – buildings  95,395 93,722 
Rentals – other   6,075 - 
Auditor’s remuneration – audit  10,750 12,500 
Auditor’s remuneration – other services  45,895 16,750 
  _______ ______ 
 
  
Amounts payable to Baker Tilly UK Audit LLP and their associates in respect of both audit and non audit services: 
 
 
  2010  2009 
 £ % £ % 
Audit services 
- Statutory audit of parent and consolidated accounts 10,750 19% 12,500 43% 
Other services 
The auditing of accounts of associates 
of the company pursuant to legislation. 
- Audit of subsidiaries  22,200 39% 14,500 50% 
Other services supplied pursuant to such legislation 
- Interim results 4,000 7% 2,250 7% 
Taxation services 
-  Compliance services 2,500 4% - 
Corporate finance 11,000 20% - 
Other services  6,195 11% - 
 _______  _______ 
 56,645  29,250 
 _______  _______ ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
33 
 
5. Separately Disclosable Items 
   2010 2009 
  £ £ 
Administrative expenses 
Expenses relating to the acquisition and restructuring of the business of Relax (449,473) - 
Legal costs provision no longer required  - 77,500 
 
Gain on bargain purchase  252,914 - 
 
Finance costs  
Bridging loan finance  (78,346) - 
  ________ ________ 
   (274,905) 77,500 
  ________ ________ 
 
 
On 2 December 2009 the Group acquired the back books of IVA, DMP and PTD cases from the Administrator of 
Relax.  
 
The items included in cost of sales relate to the redundancy costs associated with the restructuring of the Relax 
organisation. Included in administration expenses are various legal costs related to the acquisition, restructuring 
and shareholders circular as well as additional costs and incidentals incurred as part of the acquisition process. 
Included in finance costs are interest payments made to the administrator of Relax together with interest on a 
bridging loan pending the finalisation of the convertible loan fundraising.  
 
In 2009 £77,500 was credited to administrative expenses in respect of legal costs no longer required. 
 
 
6. Finance Costs   
   2010 2009 
   £ £ 
 
Interest payable on loans  115,513 126,600 
Interest payable on convertible loan notes  91,147 - 
  ________ ________ 
   206,660 126,600 
   ________ ________  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
34 
 
7. Employees 
 
Number of Employees 
 
The average monthly numbers of employees (including the Directors) during the period was: 
 
 
   2010 2009 
   Number Number 
 
Directors  5 4 
Sales and marketing  24 16 
Advice team, management and administration  13 7 
IVA and PTD processing team  27 9 
DMP processing team  35 21 
  ________ ________ 
  104 57 
  ________ ________ 
 
 
Employment costs  2010 2009 
  £ £ 
 
Wages and salaries  2,276,166 1,093,653 
Social security costs  161,015 96,973 
Pension costs  - - 
  ________ ________ 
  2,437,181 1,190,626 
  ________ ________ 
 
 
Directors’ Emoluments  2010 2009 
  £ £ 
 
Directors’ fees  101,500 48,000 
Directors’ emoluments  83,000 19,656 
  ________ ________ 
  184,500 67,656 
Social security costs  10,624 2,516 
  ________ ________ 
Key management compensation – short term benefits  195,124 70,172 
  ________ ________ 
 
 
Key management consist of the statutory directors of the Group.  The share based payment with regard to key 
management amounted to £4,098. 
    
Number of Directors to whom retirement benefits are accruing under a  Number Number 
money purchase scheme  - - 
  ________ ________  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
35 
 
8. Taxation   
   2010 2009 
   £ £ 
Analysis of current year   
 
Current tax 
UK corporation tax payable  - 13,817 
UK corporation tax repayment due  (8,372) - 
Over provision from prior years   (15,273) (15,412) 
   ________ ________ 
 
Total corporation tax   (23,645) (1,595) 
   ________ ________ 
 
Deferred tax 
Temporary differences, origination and reversal  147,119 150,818 
Effect of tax rate changing on opening balance  - (95,362) 
   ________ ________ 
 
Total deferred tax charge  147,119 55,456 
   ________ ________ 
 
Tax on profit for the year  123,474 53,861 
   ________ ________ 
 
 
Factors affecting charge for year   
   2010 2009 
   £ £ 
 
Profit before taxation  465,709 460,923 
   ________ ________ 
Profit multiplied by standard rate of corporation tax  
in the UK of 28% (2009: 28%)  130,398 129,058 
 
Effects of: 
Expenses not deductible  1,873 302 
Adjustment due to change of tax rate  - (95,362) 
Marginal relief  - (5,156) 
Unrelieved tax losses   6,476 40,431 
Other prior year adjustment  (15,273) (15,412) 
   ________ ________ 
 
Current tax expense for year  123,474 53,861 
   ________ ________  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
36 
 
9. Earnings per Ordinary Share   
   2010 2009 
   £ £ 
Profit for the financial year  342,235 407,062 
   __________ __________ 
 
Weighted average number of ordinary shares in issue during the year   308,340,567 306,213,855 
 
Dilutive potential of warrants  - - 
Dilutive potential of share options   - - 
Dilutive potential of convertible loan notes  - - 
   __________ __________ 
   308,340,567 306,213,855 
   __________ __________ 
Earnings per share  
 
Basic  0.11p 0.13p 
Diluted  0.11p 0.13p 
   __________ __________ 
 
The calculation of the basic earnings per ordinary share of 0.11p (2009:  0.13p) each has been based on the profit 
for the relevant financial year and on 308,340,567 shares (2009: 306,213,855).  This represents the weighted 
average number of ordinary shares in issue.  The profit for the period for the purpose of calculating the diluted 
earnings per share is the same as for the basic earnings per share calculation.  
 
The profit for the year ended 30 June 2010 and the weighted average number of ordinary shares for the purposes of 
calculating the diluted earnings per share are the same as for the basic earnings per share calculation.  This is 
because the outstanding options and convertible loan notes were exercisable at a price above the average share price 
in the year and would therefore not be dilutive under the terms of IAS 33.   
  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
37 
 
10. Intangible Assets 
    Other Software 
    intangibles Development 
   Goodwill - back books costs Total 
   £ £ £ £ 
Cost – 2010 
At 1 July 2009  4,457,892 178,000 208,789 4,844,681 
Arising on acquisition of back books   - 3,078,000 - 3,078,000 
Additions   - - 143,728 143,728 
Disposals  - (178,000) (94,024) (272,024) 
   _________ _________ _________ _________ 
At 30 June 2010  4,457,892 3,078,000 258,493 7,794,385 
   _________ _________ _________ _________ 
Amortisation – 2010 
At 1 July 2009  - 178,000 129,382 307,382 
Charge for year  - 944,234 49,746 993,980 
Disposals  - (178,000) (94,024) (272,024) 
   _________ _________ _________ _________ 
At 30 June 2010  - 944,234 85,104 1,029,338 
   _________ _________ _________ _________ 
Net book value 
At 30 June 2010  4,457,892 2,133,766 173,389 6,765,047 
   _________ _________ _________ _________ 
 
 
    Other Software 
   Other Development Development 
  Goodwill intangibles costs  costs Total 
    £ £ £ 
Cost – 2009 
At 1 July 2008 4,402,280 178,000 80,312 155,293 4,815,885 
Additions - - - 23,496 23,496 
Arising on acquisition of Debt Advice Portal 55,612 - - 30,000 85,612 
Disposals  - - (80,312) - (80,312) 
  _________ _________ _________ _________ _________ 
At 30 June 2009 4,457,892 178,000 - 208,789 4,844,681 
  _________ _________ _________ _________ _________  
Amortisation – 2009 
At 1 July 2008 - 170,500 58,765 81,806 311,071 
Charge for year - 7,500 21,547 47,576 76,623 
Disposals - - (80,312) - (80,312) 
  _________ _________ _________ _________ _________  
At 30 June 2009 - 178,000 - 129,382 307,382 
  _________ _________ _________ _________ _________ 
Net book value  
At 30 June 2009 4,457,892 -  - 79,407 4,537,299 
  _________ _________ _________ _________ _________ 
 
 
   ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
38 
 
10. Intangible Assets (continued) 
 
Impairment reviews 
 
The total carrying value of £4,457,892 relating to goodwill is reviewed annually for impairment.  This comprises 
£3,068,986 relating to the insolvency business and £1,388,906 relating to the debt management business. 
 
For the purposes of impairment review the recoverable amount has been calculated as the value in use based on 
discounted future cash flow projections for a five year period. 
 
Goodwill arising on ClearDebt acquisition (insolvency business) – critical accounting estimates and 
judgements in relation to the impairment review on the insolvency business 
 
Monthly revenue projections assume that the number IVA cases approved will nearly quadruple over the next 2 
years through the acquisition of new lead sources before falling by 20% and increasing by 2.5% per annum 
thereafter. Nominee fees per case are expected to remain at current levels together with average supervisory fees, 
and IVAs lasting a maximum of 5 years.  Expenses are expected to rise 51% in the first year, 12% in the second 
year and fall by 11% in year 3 before increasing by 2.5% over the remaining two years.  The appropriate discount 
factor used in the calculations is 10%. 
 
Assumptions are based on recent experience and estimates of how economic conditions may affect levels of activity 
in the business. 
 
The Group’s cost of capital could increase to 37% or insolvency income fall short of projections by 17.25% without 
a matching fall in expenses before the carrying value of this part of goodwill would exceed the value in use. 
 
Impairment review on the debt management business 
 
Projections have been produced covering a five year period.  Revenues are expected to grow 20% in the first year, 
4% in the second year before falling by 10% and then increasing at 2.5% per annum over the remaining period.  
Expenses are expected to increase by 2.5% in year 1 and remain constant in year two and three before rising by 
2.5% per annum, thereafter.  
 
The assumptions are based on recent experience of monthly growth and estimates of how economic conditions will 
affect levels of activity in the business.  The discount factor used in the calculations is 10%. 
 
The Group’s debt management income would need to fall short of projections by 30% without a matching fall in 
expenses or the Group’s cost of capital increase to 74% before the carrying value of this part of goodwill would 
exceed the value in use. 
 
Goodwill arising on the purchase of the software and database of The Debt Advice Portal 
 
Projections have been produced covering a five year period.  Revenues are expected to grow 14% on over the first 
year and grow by 2.5% over the remaining period.  Expenses are expected to remain constant over the period. 
 
The assumptions are based on recent experience and the continued development of the portal and expansion of the 
referrer database.  The discount factor used in the calculations is 10%. 
 
The Group’s income from referrers would need to fall short of projections by 74% before the carrying value of this 
part of goodwill would exceed the value in use. 
 
  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
39 
 
11. Property, Plant and Equipment 
 
  Fixtures Leasehold  
  and fittings improvements Total 
  £ £ £ 
Cost – 2010 
At 1 July 2009 348,295 26,015 374,310  
Additions 121,568 22,683 144,251 
Disposals  (3,184) - (3,184) 
  ________ ________ ________ 
At 30 June 2010 466,679 48,698 515,377 
  ________ ________ ________ 
Depreciation – 2010 
At 1 July 2009 171,539 12,971 184,510 
Charge for the year 92,834 10,041 102,875 
  ________ ________ ________ 
At 30 June 2010 264,373 23,012 287,385 
  ________ ________ ________ 
Net book value 
At 30 June 2010 202,306 25,686 227,992 
  ________ ________ ________ 
 
Cost – 2009 
At 1 July 2008 313,106 25,181 338,287 
Additions 36,023 - 36,023 
Transfer (834) 834 - 
  ________ ________ ________ 
At 30 June 2009 348,295 26,015 374,310 
  ________ ________ ________ 
Depreciation – 2009 
At 1 July 2008 87,883 6,348 94,231 
Charge for the year 84,490 5,789 90,279 
Transfer (834) 834 - 
  ________ ________ ________ 
At 30 June 2009 171,539 12,971 184,510 
  ________ ________ ________ 
Net book value 
At 30 June 2009 176,756 13,044 189,800 
  ________ ________ ________ 
 
  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
40 
 
12. Trade and other Receivables 
  2010 2009 
  £ £ 
 
Trade receivables 1,005,163 568,086 
Prepayments 126,134 72,967 
Other receivables 21,929 88,257 
  ________ ________ 
  1,153,226 729,310 
  ________ ________ 
 
Trade receivables are all due in less than one year and represent monies due in respect of IVA nominee and 
supervisors’ fees.  These monies are collected from monthly debtor receipts.  The trade receivables figure is shown 
net of provisions in respect of IVA failures amounting to £135,674 (2009: £52,133).  There are no trade receivables 
that are past due that have not been impaired. 
 
An analysis of the provision for impairment of receivables is as follows: 
  2010 2009 
  £ £ 
 
At the beginning of the year 52,133 57,313 
Charge for the year 124,480 84,737 
Utilised during the year (40,939) (89,917) 
  ________ ________ 
At end of year 135,674 52,133 
  ________ ________ 
 
The directors consider that the carrying value of trade and other receivables approximates to their fair value.  
 
 
13. Current Liabilities 
  2010 2009 
  £ £ 
Trade and other payables: 
 
Trade payables  315,562 243,310 
Accruals 458,620 329,265 
Other payables 234,969 67,232 
  ________ ________ 
  1,009,151 639,807 
  ________ ________ 
 
The directors consider that the carrying value of trade and other payables approximates to their fair value.  
 
Corporation tax - 13,817 
  ________ ________ 
  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
41 
 
14. Financial Liabilities 
 
Loans outstanding at 30 June 2010 were as follows:- 
  2010 2009 
  £ £ 
 
Secured convertible loan notes  2,065,350 - 
Loans 700,000 1,200,000 
  ________ ________ 
 
  2,765,350 1,200,000 
  ________ ________ 
 
 
On 16 April 2010 £2.3m of 3 year 10% Secured Convertible Loan notes were issued by CDG (Guernsey) Limited,  a 
wholly owned subsidiary of ClearDebt Group plc, to  investors. Holders of the loan notes are entitled to interest on 
the loan notes at a rate of 10% per annum payable on a quarterly basis and have an option to convert all or part of 
their holdings at par into ordinary shares at any time in ClearDebt Group plc at a price of 1.8p per share. At the end 
of the 3 year period the principal is repayable in cash plus a premium of 25% in respect of any holdings that are not 
converted into ordinary shares at the loan note holder’s option. 
 
The Loan Notes are secured by way of a debenture dated 19 April 2010 over the assets of the Group. The Company 
has also entered into a cross guarantee with CDG (Guernsey) Limited in respect of the convertible loan notes. 
 
In accordance with IAS 39 the directors have calculated the net present values of the cash flows in respect of the 
interest and principal payments (assuming all are redeemed in cash and not taken as shares) over the next three years 
discounted at a rate of 17% which the directors consider would have been the interest payable on a bank loan 
without the convertible element. Accordingly the loan notes are recorded as a financial liability at £2,065,350 as at 
30 June 2010. An equity reserve has been created being the difference in value of the loan at inception and the 
£2.3m issue value, representing the equity element of the instrument.  
 
D E M Mond has converted £500,000 of the loans due to himself for £500,000 of the secured convertible loan notes 
at the time of issue of the loan notes in April 2010. 
 
The loan to D E M Mond of £700,000 ( 2009: £1,200,000) is repayable on 31 March 2012 or earlier at the Group’s 
discretion although there is a confirmation in place that this support will continue should the Group not be in a 
position to repay the loan and continue to meet other liabilities as they fall due.  Loan repayments may only be made 
with permission of the secured convertible loan note holders on condition that forecasts show minimum working 
capital of £500,000 for the 6 months following repayment.  Interest of £115,513 (2009: £126,600) was paid by the 
Group to D E M Mond in the year in respect of his loans. Interest of £44,924 was paid to the secured convertible 
loan note holders in the year (2009: £nil).  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
42 
 
15. Deferred Taxation 
  2010 2009 
  £ £ 
Temporary differences (92,147) (28,614) 
Losses  187,128 376,554 
  ________ ________ 
At 30 June 94,981 347,940 
  ________ ________ 
 
Analysed as follows: 
  2010 2009 
  £ £ 
 
Deferred tax asset 163,720 347,940 
Deferred tax liability (68,739) - 
  ________ ________ 
At 30 June 94,981 347,940 
  ________ ________ 
    
Movement in the period  
  2010 2009 
  £ £ 
 
At 1 July 347,940 403,396 
Arising on acquisition of intangible assets (105,840) - 
Deferred tax charge taken to the income statement (147,119) (55,456) 
  ________ ________ 
At 30 June 94,981 347,940 
  ________ ________ 
 
The deferred tax asset relates to tax losses available to offset against future taxable profits. Detailed forecasts have 
been prepared for the next 5 years showing sufficient profits to enable these losses to be utilised. It is the directors’ 
opinion that these losses will be recoverable over this time period.  
 
Unrecognised deferred tax 
  2010 2009 
  £ £ 
 
Losses 147,000 - 
  ________ ________ 
At 30 June 147,000 - 
  ________ ________ 
 
Provision for liabilities and charges – deferred taxation  
 
On 2 December 2009 the Group purchased the goodwill and assets of certain subsidiaries of Relax (see note 18). 
Following the estimation of the fair values of the assets purchased the Group provided £105,840 in respect of 
deferred taxation in relation to the acquisition. During the year £37,101 of this provision has been released to the 
profit and loss account based upon the revenue received to date as a proportion of the total estimated revenue to be 
received at the time of acquisition. 
 
   ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
43 
 
16. Share Capital 
  2010 2009 
Authorised share capital: £ £ 
 
Ordinary share capital  
750,000,000 (2009: 750,000,000)  3,750,000 15,000,000 
Ordinary shares of 0.5 pence each (2009: 2p)  
 
Deferred ordinary share capital  
750,000,000 (2009: nil)  11,250,000 - 
Deferred ordinary shares of 1.5p each   
  _________    _________ 
  
  15,000,000 15,000,000 
  _________ _________ 
Allotted, called up and fully paid:  
 
Ordinary share capital  
308,340,567 (2009: 308,340,567)  1,541,703 6,166,812 
Ordinary shares of 0.5 pence each (2009: 2p)  
 
Deferred ordinary share capital  
308,340,567 (2009: nil)  4,625,109 - 
Deferred shares of 1.5p each   
  _________ _________ 
  
  6,166,812 6,166,812 
  _________ _________ 
 
 
On 25 May 2010 shareholders approved a reorganisation of the share capital splitting each old 2p Ordinary Share 
into a new 0.5p Ordinary share and a 1.5p Deferred Ordinary share.  
 
The Deferred Ordinary Shares of 1.5p each carry the same rights as the new Ordinary 0.5p shares save that they do 
not carry any rights to vote at general meetings or any rights to receive dividends. The Deferred Ordinary Shares are 
not capable of transfer at any time without the prior written consent of the Directors and have the right to repayment 
of the paid up capital only on any winding up or return of capital. It is the intention of the Board to seek Court 
approval to cancel the Deferred Ordinary Shares and the Share Premium Account in due course.   
 
The Company has granted equity settled share options to selected directors and employees under an EMI scheme. 
The exercise price is the market value of the shares at the date of grant. The vesting period is three years. If the 
options remain unexercised after a period of ten years from the date of grant then they are forfeited. 
  
At 30 June 2010 there were 11,750,000 (2009: Nil) share options outstanding over the Company’s ordinary shares at 
an exercise price of 2.0p per share.  
 
   ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
44 
 
16. Share Capital (continued) 
 
Details of the share options issued during the year and outstanding at 30 June 2010 are as follows:- 
 
  2010  2009 
   Weighted  Weighted 
  Number of average exercise Number of average exercise 
  Options  price in (p) options  price in (p) 
 
Outstanding at beginning of year - - - - 
Granted during year 13,062,500 2.0 - - 
Forfeited during year (1,312,500)                            2.0  - - 
  __________ _____ __________ _____ 
 
Outstanding at the end of the year 11,750,000 2.0 - - 
  __________ _____ __________ _____ 
 
Exercisable at 30 June  - - - - 
  __________ _____ __________ _____ 
 
 
These share options are normally exercisable between 7 October 2012 and 7 October 2019 providing the employee 
has been in continuous service for 3 years following the granting of the options.  
 
The options outstanding at 30 June 2010 had a weighted average exercise price of 2p and a weighted average 
remaining contractual life of 9 years and 3 months. 
 
The fair value of options granted under the scheme is measured by use of the Black-Scholes model. The inputs into 
the Black-Scholes model for options granted during the year are as follows: 
Grant date 
    
 
7 October 2009 
Share price at grant date 
    2p 
Exercise price 
    2p 
Number of employees 
    73 
Share options granted     13,062,500 
Vesting period (years) 
    3 
Expected volatility 
    211% 
Option life (years) 
    10 
Expected life (years) 
    3 
Risk free rate 
    5.75% 
Expected dividends expressed as a dividend yield     0% 
Fair value per option 
    2p 
  
Expected volatility was based upon the historical volatility of the Company’s share price.  The expected life is based 
upon historical data and has been adjusted based on management’s best estimates for the effects of non-
transferability, exercise restrictions and behaviour considerations. 
 
 
 
 
 
  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
45 
 
16. Share Capital (continued) 
 
Details of the warrants issued during the year and outstanding at 30 June 2010 are as follows: 
 
 2010 2009 
   Weighted  Weighted 
  Number of average exercise Number of average exercise 
  warrants price in pence warrants price in pence 
 
Outstanding at beginning of year 9,137,717 2.0 40,736,775 2.0 
Granted during year - - - - 
Lapsed during year - 2.0 (31,599,058) (2.0) 
  __________ _____ __________ _____ 
 
Outstanding at the end of the year 9,137,717 2.0 9,137,717 2.0 
  __________ _____ __________ _____ 
 
 
No warrants were exercised during the year.  All the above warrants expired unexercised on 17 July 2010.  
 
On 13 March 2007 the Company entered into a referral agreement with Money Helper.  The agreement provided for 
the issue of up to 10 million warrants subject to certain vesting conditions at a price of 3p per ordinary share.  These 
warrants would have been exercisable up until 28 March 2010.  No warrants have been issued to Money Helper and 
accordingly none have vested for issue under the agreement or will be issued under the agreement. 
 
On 22 June 2007 the Company acquired the entire issued share capital of Abacus (Financial Consultants) Limited 
for £1.2m in cash together with a deferred consideration payable of up to £5m which was to be satisfied by the issue 
of up to 222,222,222 new shares at a price of 2.25 pence each. The deferred consideration was payable provided 
certain performance targets were met in the financial periods up to and including the year ended 30 June 2010. None 
of the performance targets have been met and accordingly no new shares have or will be issued under the agreement. 
 
 
17. Share Based Compensation 
 
The Group recognised the following expense related to share-based payments in the year relating to the issue of 
EMI share options to certain directors and employees of the Group. 
 
    2010 2009 
    £ £ 
 
Charged to consolidated income statement    42,573 - 
    ______ ______ 
  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
46 
 
18. Acquisition 
 
On 2 December 2009 the Group purchased from Relax Group the goodwill and assets of certain subsidiaries of 
Relax.  The assets purchased comprised the goodwill of the IVA business which traded as Synergi Partners; the 
Debt Management business which traded under the name of Debtcare; and the Protected Trust Deed business which 
traded under the name of Adie Financial Services or AFS.  
 
The total consideration due to the Administrator was £2,700,000 which has been paid in full.  
 
The assets acquired were exclusively intangible assets represented by the future income stream due from the 
collection of the back books of IVA, PTD and DMP cases managed by each business. At the date of acquisition the 
fair values of the assets purchased comprised the following: 
 
   Fair value   
  Book value adjustment Fair value 
  £ £ £ 
 
Other intangible assets – Insolvency - 2,152,000 2,152,000 
Other intangible assets – Debt management - 926,000 926,000 
Deferred taxation - (105,840) (105,840) 
Other payables - (19,246) (19,246) 
Gain on bargain purchase - (252,914) (252,914) 
  ___ ________ ________ 
  - 2,700,000 2,700,000 
  ___ ________ ________ 
Settled by: 
    £ 
 
Cash consideration   2,700,000 
    ________ 
 
Included in the results for the year are revenues of £2,601,090 and a pre tax profit of £120,817 excluding the gain on 
purchase of a bargain asset of £252,914. 
 
We have estimated the timing of, and the expected future income due, from the back books acquired less a provision 
for future expected delinquency together with the estimated costs necessary to collect in the income. This has been 
produced on a net present value basis to provide an estimate of the fair value of the intangible assets acquired.  
 
The fair value of the net assets acquired was £2,952,914 which is in excess of the £2.7m cost of acquisition. 
Accordingly under IFRS the consolidated income statement has been credited with a gain on bargain purchase of 
£252,914 in the period and has been included in separately disclosable items. 
 
 
19. Related party transactions 
 
D E M Mond is a partner in Hodgsons, Chartered Accountants, by whom ClearDebt Group plc (“Group”), 
ClearDebt Limited (“ClearDebt”) and Abacus (Financial Consultants) Ltd (“Abacus”) were recharged at cost for 
Google advertising, travelling, book-keeping, accountancy and utility charges to the value of £340,854 in the year 
(2009: £77,310).  ClearDebt and Abacus have also re-charged Hodgsons at cost £154,954 (2009: £161,198) for 
certain staff salaries, council taxes and office refurbishment borne by ClearDebt in the year.  At 30 June 2010 
Hodgsons owed ClearDebt and Abacus £102,304.  Group made no payments on behalf of Hodgsons in the year. 
 
As at 30 June 2010 Group had net amounts due to Hodgsons of £47,376 (2009: due from Hodgsons £11,457).   
 
   ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
47 
 
19. Related party transactions (continued) 
 
During the year Hodgsons recharged £200,000 in respect of additional costs related to the Relax acquisition 
including funding and other legal costs incurred by Hodgsons in supporting the Group pending the finalisation of the 
convertible loan fund raising.   
 
ClearDebt and Hodgsons operate a central payroll function and, at the reporting date £nil (2009: £97,883) of wages 
cost was due to Hodgsons and included within trade and other creditors.  
 
Overall as at 30 June 2010 Hodgsons owed ClearDebt £54,928 (2009: £203,286). No interest is being charged on 
the outstanding amounts.   
 
D E M Mond also made a loan to the Company in July 2007.  As at 30 June 2010 the loan balance was £700,000 
(2009: £1,200,000). The loan is repayable on 31 March 2012 or earlier at the Group’s discretion.  The loan carries 
interest at a fixed rate and £115,513 (2009: £126,600) was paid by the Group to D E M Mond in the year in respect 
of interest on the loan. 
 
20. Financial instruments 
 
It is not the Group’s policy to invest in financial derivatives.  Although the financial risks are considered to be 
minimal at present, future interest rate, liquidity and foreign currency risk could arise and the Board will review its 
existing policies in the coming period.  The Group finances its operations from cash resources, short term loans and 
convertible debt. 
 
Interest rate risk 
The Group’s objective is to minimise its exposure to the effects of fluctuations in interest rates whilst balancing this 
against the need to minimise borrowing costs.  To manage exposure to interest rate risk the Group has taken all 
borrowings on a fixed interest rate.  The only assets that attract a cash flow risk are cash and cash equivalents. 
 
Liquidity risk 
It is the Group’s policy to manage liquidity in order to achieve continuity of funding.  This is managed by detailed 
projections and monitoring of expenditure with significant items of expenditure requiring approval of senior 
management. 
 
Foreign currency risk 
The Group has no overseas assets or liabilities. 
 
Interest rate risk profile of financial assets 
All the financial assets of the Group were floating rate or non interest bearing assets.  Floating rate financial assets 
comprise cash deposits on money market deposits at call and interest was received at a rate of between 0.5% and 
1.4%.  At 30 June 2010 interest bearing financial assets of the Group totalled £541,504 (2009: £584,593). 
 
Credit risk 
The Group’s objective is to minimise credit risk as far as possible whilst maximising returns on financial assets.  
The financial assets of the Group are placed on money markets with the Group’s bankers and other banks.  As such 
the Group is exposed to counter party risks with respect to deposits placed with its bankers.  Financial institutions in 
which deposits are made are selected based on their credit rating as well as the returns offered. 
 
There is an inherent risk of default in trade receivables.  The Group minimises its risk by ensuring that IVAs are 
only entered into appropriately to minimise the risk of failure of the IVA.  The risk of default will generally only 
arise if an IVA fails in the first 6 months. 
 
Details of exposure and ageing of the trade receivables are shown at note 12.  The total exposure to the Group at 30 
June 2010 in respect of trade receivables and cash amounts to £1,546,667 (2009: £1,152,679). 
   ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
48 
 
20. Financial instruments (continued) 
 
Capital 
The Group defines capital as equity and long term debt. 
 
The Group’s objective for managing capital is to balance the risk and reward to shareholders by ensuring an 
appropriate level of gearing.  There are no restrictions on the makeup of the Group’s capital. 
 
Interest rate risk profile of financial liabilities 
The interest rate profile of the financial liabilities of the Group as at 30 June 2010 is as follows: 
 
 
  Fixed rate Floating rate Financial 
  Financial financial liabilities on which 
  Liabilities liabilities no interest is paid Total 
  £ £ £ £ 
 
2010 Sterling 3,518,208 - - 3,518,208 
  _________ _________ _________ _________ 
 
2009 Sterling 1,420,500 - - 1,420,500 
  _________ _________ _________ _________ 
 
 
Maturity of financial liabilities 
The maturity profile of the Group’s financial liabilities as at 30 June 2010 was as follows: 
 
    2010 2009 
    £ £ 
 
Payable within one year   303,848 - 
Payable between one and two years   285,386 1,420,500 
Payable between two and five years   2,928,974 - 
    _________ _________ 
 
Currency exposures 
The Group has no overseas assets or liabilities. 
 
Fair values of financial assets and financial liabilities 
The fair values, based upon the market value or discounted cash flows of the financial instruments detailed above 
was not materially different from their book values. 
 
 
21. Operating Lease Commitments 
 
Total rentals under operating leases charged to the income statement were as follows:- 
 
    2010 2009 
    £ £ 
 
Operating leases   101,470 93,722 
    ________ ________ 
  ClearDebt Group plc 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2010 
 
49 
 
21. Operating Lease Commitments (continued) 
 
The future minimum lease payments under operating leases that have initial or remaining terms in excess of one 
year at 30 June 2010 were as follows: 
    2010 2009 
    £ £ 
 
Payable within one year   163,156 93,722 
Payable between one and five years   127,005 182,822 
    ________ ________ 
     
    290,161 276,544 
    ________ ________ 
 
The operating leases represent leases on the office premises used by the Group at its Timperley and Staveley, 
Chesterfield sites as well as office equipment. These leases are due to expire between November 2010 and 
November 2012. 
 
 
22.   Contingent Liabilities  
 
In December 2009 certain insolvency assets of Relax were purchased from its Administrator and the insolvency 
related employees were taken on as part of the purchase. Claims have been received by a number of employees of 
the former Relax companies who did not work in the insolvency businesses alleging that they should have 
transferred to Company as a result of the acquisition. These claims are being vigorously defended and are listed for 
preliminary hearings over the coming months on various points of law initially. Should the claims not be struck out 
they will proceed to tribunal hearings where we are confident of success given the legal advice received at the time 
of the acquisition. All legal costs are being borne by the Company’s employment insurers although there could be 
potential liabilities in respect of any awards that may ultimately be made against the Company.  
 
The directors are satisfied on the basis of information presently held that no provision is required at the present time.  ClearDebt Group plc 
COMPANY BALANCE SHEET  
AS AT 30 JUNE    Company Number 02441375 
 
50 
 
 
    2010 2009 
   Notes £ £ 
Fixed Assets 
Intangible assets    2 30,139 - 
Tangible assets  3 8,112 - 
Investments  4 4,644,769 4,606,294 
    _________ _________ 
 
    4,683,020 4,606,294 
Current Assets 
Debtors: amounts falling due within one year  5 185,090 156,882 
Debtors: amounts falling due after one year  6 2,626,159 1,336,361 
Cash at bank    350,657 423,610 
    _________ _________ 
 
    3,161,906 1,916,853 
Creditors: amounts falling due within one year  7 (118,098) (26,689) 
    _________ _________ 
 
Net Current Assets   3,043,808 1,890,164 
    _________ _________ 
 
Total assets less current liabilities   7,726,828 6,496,458 
 
Creditors: amounts falling due after one year  8 (2,861,846)  (1,200,000) 
    _________ _________ 
 
Net Assets   4,864,982 5,296,458 
    _________ _________ 
 
Capital and Reserves 
Called up share capital  9 6,166,812 6,166,812 
Share premium account  12 279,948 279,948 
Share based compensation reserve  12 101,912 97,814 
Profit and loss account  12 (1,683,690) (1,248,116) 
    _________ _________ 
 
Equity Shareholders’ Fund   4,864,982 5,296,458 
    _________ _________ 
 
The financial statements were approved by the Board of Directors and authorised for issue on 17 September 2010 
and are signed on its behalf by: 
 
 
 
 
D E M Mond 
Director 
  ClearDebt Group plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
51 
 
1.     Significant Accounting Policies 
 
Basis of Accounting 
The financial statements have been prepared under the historical cost convention and in accordance with UK 
Generally Accepted Accounting Principles (UK GAAP). 
 
Deferred Taxation 
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance 
sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less 
tax in the future have occurred at the balance sheet date.  Timing differences are the differences between the 
Company taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and 
losses in tax arrangements in periods different from those in which they are recognised in the financial statements. 
 
Deferred tax assets are recognised only to the extent that the Directors consider that it is more likely than not that 
there will be suitable taxable profits from which the future reversal of the underlying timing differences can be 
deducted. 
 
Deferred tax is calculated at the rates that are expected to apply in the periods in which timing differences reverse, 
based on tax rates and laws enacted or substantively enacted at the balance sheet date.  Deferred tax is measured on a 
non-discounted basis. 
 
Cash Flow Statement 
The Company has taken advantage of the exemption permitted by FRS1 not to present a cash flow statement. 
 
Investments  
Fixed asset investments are stated at cost except where in the opinion of the directors, there has been permanent 
diminution in the value of the investments, in which case an appropriate adjustment is made. 
 
Share-Based Compensation 
Equity-settled share based payments are measured at the fair value of services received in exchange for the grant of 
options or warrants.  The fair value determined is recognised as an expense if it relates to trading activities or in the 
share premium account if it relates to the issue of equity instruments.  The total amount to be expensed over the 
vesting period is determined by reference to the fair value of the options or warrants granted, excluding the impact of 
any non-market vesting conditions (for example, profitability and growth targets).  Non-market vesting conditions 
are included in the assumptions about the number of options or warrants that are expected to become exercisable.  At 
each balance sheet date, the company revises its estimates of the number of options or warrants that are expected to 
become exercisable.  It recognises the impact of the revision of original estimates, if any, in the income statement, 
and a corresponding adjustment to reserves over the remaining vesting period. 
 
The proceeds received net of any attributable transaction costs are credited to share capital (nominal value) and share 
premium when the options or warrants are exercised. 
 
Non vesting conditions which are not satisfied during the vesting period are treated as cancellations and any 
remaining expense is accelerated in the period of failure. Share based payments associated with share options 
granted to employees of subsidiaries of the parent company are treated as an expense of the subsidiary company to 
be settled by equity of the parent company. The share based payment expense increases the value of the parent 
company’s investment in the subsidiaries and is credited to the Share based payment reserve. 
 
Fair value is measured by use of the Black-Scholes model. The expected life used in the model has been adjusted, 
based on management’s best estimate, for the effect of non-transferability, exercise restrictions and behavioural 
considerations.  ClearDebt Group plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
52 
 
1.   Significant Accounting Policies (continued) 
 
Tangible Fixed Assets  
All tangible property, plant and equipment are initially recorded at cost.  Depreciation is provided at rates calculated 
to write off the cost less residual value of each asset over its expected useful life, as follows: 
 
Fixtures and fittings   -  25% straight line 
 
Residual value and estimated remaining lives are reviewed annually. 
 
Other Intangible Assets 
Internal and externally acquired intangible assets are initially recognised at cost and subsequently amortised over 
their useful economic lives. The significant intangibles recognised by the Group, their useful economic lives and the 
methods used to determine the cost of intangibles acquired in a business combination are as follows:- 
 
Other intangibles – websites and databases  -  3 years straight line 
 
Loss attributable to the Members of the Parent Company 
 
The Company has taken advantage of Section 408 of the Companies Act 2006 and has not included its own profit 
and loss account for these financial statements.  The loss dealt with in the accounts of the parent company was 
£435,574 (2009: £198,643). 
 
 
2.     Intangible Assets 
  Other   
  Intangibles Other  
  - Back books Intangibles Total 
   £  £ £ 
Cost – 2010 
At 1 July 2009 - - - 
Additions  3,078,000 35,000 3,113,000 
Transfer to subsidiaries (3,078,000) - (3,078,000) 
  _________ _________ _________ 
 
At 30 June 2010 - 35,000 35,000 
  _________ _________ _________ 
Amortisation – 2010   
At 1 July 2009 - - - 
Charge for year - 4,861 4,861 
  _________ _________ _________ 
At 30 June 2010 - 4,861 4,861 
  _________ _________ _________ 
Net book value 
At 30 June 2010 - 30,139 30,139 
  _________ _________ _________ 
Net book value 
At 30 June 2009 - - - 
  _________ _________ _________ 
  
On 2 December 2009 the Company purchased from Relax the goodwill and assets of certain subsidiaries of Relax.  
The assets acquired were exclusively intangible assets represented by the future income stream due from the 
collection of the back books of IVA, PTD and DMP cases managed by each business. At the date of acquisition the 
fair values of the assets purchased comprised were estimated and transferred to ClearDebt and Abacus (see note 10). 
  ClearDebt Group plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
53 
 
3.    Tangible assets 
   Fixtures 
   and fittings 
   £ 
Cost – 2010  
At 1 July 2009  - 
Additions    12,500 
Disposals   (3,184) 
   _______ 
At 30 June 2010  9,316 
   _______ 
Depreciation – 2010  
At 1 July 2009  - 
Charge for the year  1,204 
   _______ 
At 30 June 2010  1,204 
   _______ 
Net book value 
At 30 June 2010  8,112 
   _______ 
Net book value 
At 30 June 2009  - 
   _______ 
 
 
4. Fixed Asset Investments    Shares in 
    Subsidiary undertakings 
     £ 
Cost 
As at 1 July 2009     4,606,294 
Investment in subsidiaries -Share based payments     38,475 
    ________ 
 
As at 30 June 2010     4,644,769 
    ________ 
 
The net book value of investments at 30 June 2010 was £4,644,769 (2009: £4,606,294) 
 
Shares in subsidiary undertakings are stated at cost.  Group owns directly the following principal subsidiaries which 
are included in the consolidated accounts: 
 
     Profit/ Reserves 
  Class of   (loss) for 30 June 
Company Activity shares  Holding period 2010 
     £ £ 
 
ClearDebt Limited Financial Advisors Ordinary 100% 670,314 52,825 
ClearCash Limited Pre-Paid Card Ordinary 100% (6,969) (6,969) 
Abacus (Financial Consultants) Limited Debt Management Ordinary 100% (63,820) 146,670 
The Debt Advice Portal Limited Dormant  Ordinary 100% - - 
Clear Finance Solutions Limited  Dormant  Ordinary  75.1% - - 
Reclaim Assistance Limited  Dormant  Ordinary 100% - - 
CDG (Guernsey) Limited     Investments       Ordinary 100% - 96,496 
 
 
  ClearDebt Group plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
54 
 
5.    Debtors: amounts falling due within one year 
   2010 2009 
   £ £ 
 
Other debtors   - 17,500 
Prepayments and accrued income   26,117 4,306 
Deferred tax asset   158,973 135,076 
   ________ ________ 
  
   185,090 156,882 
   ________ ________ 
 
The deferred tax asset relates to tax losses available to offset against future taxable profits. Detailed forecasts have 
been prepared for the next 5 years showing sufficient profits to enable these losses to be utilised. It is the directors’ 
opinion that these losses will be recoverable over this time period.  
 
 
6.    Debtors: amounts falling due after one year 
   2010 2009 
   £ £ 
 
Amounts owed by Group undertakings   2,626,159 1,336,361 
   ________ ________ 
 
7.   Creditors: amounts falling due within one year 
   2010 2009 
   £ £ 
 
Trade creditors   23,958 8,369 
Accruals   94,140 18,320 
    ________ ________ 
 
    118,098 26,689 
    ________ ________ 
8.    Creditors: amounts falling due after one year 
   2010 2009 
   £ £ 
 
Amounts owed to group undertakings   2,161,846 - 
Loan    700,000 1,200,000 
    ________ ________ 
 
    2,861,846 1,200,000 
    ________ ________ 
     
D E M Mond converted £500,000 of the loans due to himself to £500,000 of the secured convertible loan notes at the 
time of issue of the loan notes in April 2010. 
 
The loan to D E M Mond of £700,000 ( 2009: £1,200,000) is repayable on 31 March 2012 or earlier at the 
Company’s discretion although there is a confirmation in place that this support will continue should the Company 
not be in a position to repay the loan and continue to meet other liabilities as they fall due.  Loan repayments may 
only be made with permission of the secured convertible loan note holders on condition that forecasts show 
minimum working capital of £500,000 for the 6 months following repayment.  Interest of £115,513 (2009: 
£126,600) was paid by the Company to D E M Mond in the year in respect of his loans.  
 
  ClearDebt Group plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
55 
 
9.    Share capital 
   2010 2009 
   £ £ 
Company 
Authorised share capital:  
 
Ordinary share capital  
750,000,000 (2009: 750,000,000)  3,750,000 15,000,000 
Ordinary shares of 0.5 pence each (2009: 2p)  
 
Deferred ordinary share capital  
750,000,000 (2009: nil)  11,250,000  
Deferred ordinary shares of 1.5p each-  
  _________ _________ 
   
  15,000,000 15,000,000 
  _________ _________ 
Allotted, called up and fully paid:  
 
Ordinary share capital  
308,340,567 (2009: 308,340,567)  1,541,703 6,166,812 
Ordinary shares of 0.5 pence each (2009: 2p)  
 
Deferred ordinary share capital  
308,340,567 (2009: nil)  4,625,109 - 
Deferred shares of 1.5p each  
  _________ _________
   
   
  6,166,812 6,166,812 
  _________ _________ 
 
On 25 May 2010 shareholders approved a reorganisation of the share capital splitting each old 2p ordinary share into 
a new 0.5p Ordinary share and a 1.5p Deferred Ordinary share.  
 
The Deferred Ordinary Shares of 1.5p each carry the same rights as the new Ordinary 0.5p shares save that they do 
not carry any rights to vote at general meetings or any rights to receive dividends. The Deferred Ordinary Shares are 
not capable of transfer at any time without the prior written consent of the Directors and have the right to repayment 
of the paid up capital only on any winding up or return of capital. It is the intention of the Board to seek Court 
approval to cancel the Deferred Ordinary Shares and the Share Premium Account in due course. 
   
Details of the share options issued during the year and outstanding at 30 June 2010 are as follows:- 
 
  2010 2009 
   Weighted  Weighted 
  Number of average exercise Number of average exercise 
  Options  price in (p) options  price in (p) 
 
Outstanding at beginning of year - - - - 
Granted during year 13,062,500 2.0 - - 
Lapsed during year (1,312,500) 2.0 - - 
  __________ _____ __________ _____ 
 
Outstanding at the end of the year 11,750,000 2.0 - - 
  __________ _____ __________ _____ 
 
Exercisable at 30 June  - - - - 
  __________ _____ __________ _____ 
  ClearDebt Group plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
56 
 
9.    Share capital (continued) 
 
These share options are normally exercisable between 7 October 2012 and 7 October 2019 providing the employee 
has been in continuous service for 3 years following the granting of the options.  
 
During the year the Company issued 13,062,500 share options to directors and employees under an EMI scheme. At 
30 June 2010 there were 11,750,000 (2009: nil) share options outstanding over the Company’s shares at an option 
price of 2.0p which are normally exercisable between 7 October 2012 and 7 October 2019 provided the employee 
has had 3 years continuous service since grant. 
 
The options outstanding at 30 June 2010 had a weighted average exercise price of 2p and a weighted average 
remaining contractual life of 9 years and 3 months. 
 
The fair value of options granted under the scheme is measured by use of the Black-Scholes model. The inputs into 
the Black-Scholes model for options granted during the year are as follows: 
                                                                                                                                      
Grant date 
  
   
  
 
 
7 October 2009 
Share price at grant date 
    2p 
Exercise price 
    2p 
Number of employees 
    73 
Share options granted     13,062,500 
Vesting period (years) 
    3 
Expected volatility 
    211% 
Option life (years) 
    10 
Expected life (years) 
    3 
Risk free rate 
    5.75% 
Expected dividends expressed as a dividend yield 0% 
Fair value per option 
    2p 
  
Expected volatility was based upon the historical volatility of the Company’s share price.  The expected life is based 
upon historical data and has been adjusted based on management’s best estimates for the effects of non-
transferability, exercise restrictions and behaviour considerations. 
 
Details of the warrants issued during the year and outstanding at 30 June 2010 are as follows: 
 
  2010  2009 
   Weighted  Weighted 
  Number of average exercise Number of average exercise 
  warrants price in (p) warrants price in (p) 
 
Outstanding at beginning of year 9,137,717 2.0 40,736,775 2.0 
Granted during year - - - - 
Lapsed during year - - (31,599,058) (2.0) 
  __________ _____ __________ _____ 
 
Outstanding at the end of the year 9,137,717 2.0 9,137,717 2.0 
  __________ _____ __________ _____ 
 
No warrants were exercised during the year.  All the above warrants have expired unexercised on 17 July 2010. 
 
 
 
 
  ClearDebt Group plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
57 
 
9.    Share capital (continued) 
 
On 13 March 2007 the Company entered into a referral agreement with Money Helper.  The agreement provided for 
the issue of up to 10 million warrants subject to certain vesting conditions at a price of 3p per ordinary share.  These 
warrants would have been exercisable up until 28 March 2010.  No warrants have been issued to Money Helper and 
accordingly none have vested for issue under the agreement or will be issued under the agreement. 
 
On 22 June 2007 the Company acquired the entire issued share capital of Abacus (Financial Consultants) Limited 
for £1.2m in cash together with a deferred consideration payable of up to £5m which was to be satisfied by the issue 
of up to 222,222,222 new shares at a price of 2.25 pence each. The deferred consideration was payable provided 
certain performance targets were met in the financial periods up to and including the year ended 30 June 2010. None 
of the performance targets have been met and accordingly no new shares have or will be issued under the agreement. 
 
10.   Acquisition  
 
On 2 December 2009 the Company purchased from Relax the goodwill and assets of certain subsidiaries of Relax.  
The assets purchased comprised the goodwill of the IVA business which traded as Synergi Partners; the Debt 
Management business which traded under the name of Debtcare; and the Protected Trust Deed business which 
traded under the name of Adie Financial Services or AFS.  
 
The total consideration due to the Administrator was £2,700,000 which has been paid in full.  
 
The assets acquired were exclusively intangible assets represented by the future income stream due from the 
collection of the back books of IVA, PTD and DMP cases managed by each business. At the date of acquisition the 
fair values of the assets purchased comprised the following: 
 
   Fair value   
  Book value adjustment Fair value 
  £ £ £ 
 
Other intangible assets – Insolvency - 2,152,000 2,152,000 
Other intangible assets – Debt management - 926,000 926,000 
Deferred taxation - (105,840) (105,840) 
Other payables - (19,246) (19,246) 
Gain on bargain purchase - (252,914) (252,914) 
  ___ ________ ________ 
  - 2,700,000 2,700,000 
  ___ ________ ________ 
Settled by: 
    £ 
 
Cash consideration   2,700,000 
    ________ 
 
The timing of, and the expected future income due, from the back books acquired less a provision for future 
expected delinquency together with the estimated costs necessary to collect in the income. This has been produced 
on a net present value basis to provide an estimate of the fair value of the intangible assets acquired. 
 
The fair values above have been transferred at fair value to the Company’s subsidiaries together with the associated 
gain on bargain purchase. 
  ClearDebt Group plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
58 
 
11.   Related party transactions 
 
At 30 June 2010 £47,377 (2009: £11,457) was owed to Hodgsons and D E M Mond.  The highest balance in the year 
was £47,377 and the lowest balance £11,457. 
 
12. Equity reserves 
  
   Share Share Profit and 
  based compensation premium loss account 
   £ £ £ 
Company 
At 1 July 2009  97,814 279,948 (1,248,116) 
Share based compensation   4,098 - - 
Loss for the year  - - (435,574) 
   ________ ________ _________ 
 
At 30 June 2010  101,912 279,948 (1,683,690) 
   ________ ________ _________ 
 
 
13.   Contingent Liabilities  
 
In December 2009 certain insolvency assets of Relax were purchased from its Administrator and the insolvency 
related employees were taken on as part of the purchase. Claims have been received by a number of employees of 
the former Relax companies who did not work in the insolvency businesses alleging that they should have 
transferred to the Company as a result of the acquisition. These claims are being vigorously defended and are listed 
for preliminary hearings over the coming months on various points of law initially. Should the claims not be struck 
out they will proceed to tribunal hearings where we are confident of success given the legal advice received at the 
time of the acquisition. All legal costs are being borne by the Company’s employment insurers although there could 
be potential liabilities in respect of any awards that may ultimately be made against the Company.  
 
The directors are satisfied on the basis of information presently held that no provision is required at the present time. 
  ClearDebt Group plc 
SHAREHOLDER INFORMATION 
 
59 
 
 
Trading Record 
 
 
  IFRS IFRS IFRS IFRS 
  2010 2009 2008 2007 
  £ £ £ £ 
 
 
Revenue 6,633,995 3,386,935 1,869,190 420,963 
 
 
Profit/(loss) for the financial period 342,235 407,062 (697,264) (657,494) 
 
 
Cash generated by/(used in) operations 1,466,180 380,807 (652,233) (809,137)