ClearDebt Group Plc 
 
FINANCIAL STATEMENTS 
 
for the year ended 30 June 2009 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Registration number 02441375  ClearDebt Group Plc  
CONTENTS 
 
 
 
 Page 
 
Financial highlights 1 
Chairman’s statement 2 
Chief Executive’s statement 3-5 
Directors and advisers 6 
Directors’ report 7-9 
Corporate governance 10-11 
Statement of Directors’ responsibilities  12 
 
 
Accounts 
Auditor’s report to members 13-14 
Group income statement 15 
Group balance sheet 16 
Group statement of changes in equity 17 
Group cash flow statement 18 
Notes to the consolidated financial statements 19-38 
Company balance sheet 39 
Notes to the company financial statements 40-43 
Trading record 44 
  ClearDebt Group Plc  
FINANCIAL HIGHLIGHTS  
For the year ended 30 June 2009 
 
1 
 
 2009 2008 
 £ £ 
 
REVENUE 3,386,935 1,869,190 
 
GROSS PROFIT 1,436,365 107,807 
 
PROFIT/(LOSS) FROM OPERATIONS 576,128 (1,131,950) 
 
PROFIT/(LOSS) AFTER TAXATION 407,062 (697,264) 
 
CASH GENERATED BY/(USED IN) OPERATIONS 380,807 (652,233) 
 
 
 
Since 1 July 2008 (2008: 1 July 2007), the following numbers of IVAs have been arranged: 
 
 
 Year ended
30 June 2009
Year ended 
30 June 2008 
 
First quarter 84
 
36 
 
Second quarter 117
 
57 
 
Third quarter 118
 
67 
 
Fourth quarter 164
 
87 
 ___ ___ 
 
483
 
247 
 ___ ___ 
 
 
Since 1 July 2008, Abacus has arranged 2,856 new plans (1 July 2007: 2,707) and had 2,860 active plans at  
30 June 2009 (2008: 1,899).  ClearDebt Group plc  
CHAIRMAN’S STATEMENT 
 
2 
 
I am delighted to present the Group’s financial statements for the year ended 30 June 2009. 
 
The Group made a maiden pre-tax profit for the year of £460,923 (2008: loss of £1,221,860) resulting in a profit 
after taxation of £407,062 (2008: loss of £697,264). The successful diversification of the Group’s IVA activities 
into the debt management arena via the acquisition of Abacus (Financial Consultants) Limited (“Abacus”) has 
been the key to this turnaround. 
 
The Group’s balance sheet shows net assets of £4,535,318 (2008: £4,053,256) including cash of £584,593 
(2008: £265,537) which is sufficient to continue to develop the Group’s business over the next 12 months, given 
the positive cash flow now being enjoyed in both ClearDebt Limited (“ClearDebt”) and Abacus. 
 
The Group is now providing a complete offering of appropriate debt solutions to its clients and continues to 
realise synergies across its internet marketing platforms. The Group continues to invest in a substantial referral 
base and is further developing The Debt Advice Portal software to manage all of the Group’s external referral 
relationships.  I look forward to another profitable year following a good start to the first quarter. 
 
 
Gerald Carey FCIB 
Chairman 
 
17 September 2009 
  ClearDebt Group plc  
CHIEF EXECUTIVE’S STATEMENT 
 
3 
 
The IVA Protocol reached with creditor banks in February 2008 enabled the number of IVA approvals to start to 
increase once again after a long period of rejections by creditors. I am pleased to say that as a result ClearDebt 
enjoyed a 96% increase in the number of IVAs passed in the year with 483 new cases (2008: 247). This increase 
in cases reflects not only the favourable economic climate for IVAs but also the benefits of cross marketing with 
Abacus and enabled ClearDebt to achieve profitability. Income is currently being generated from 858 cases.  
 
Abacus has also achieved profitability for the first time (under ClearDebt Group plc ownership) in the current 
year and continues to make good progress in the favourable economic climate for debt solutions. A total of 
2,856 new debt management plans (“DMP”) were agreed in the year (2008: 2,707) an increase of 6% with some 
52% of leads arising from the ClearDebt website.  As at 30 June 2009 Abacus had 2,860 active paying debt 
management plans (2008: 1,899) which shows a healthy increase of 51% for the year.  
 
We continue to expand our internet marketing activities across the Group and are constantly exploring new 
online marketing opportunities. In conjunction with this, we are also enhancing and expanding The Debt Advice 
Portal software to manage all of our broker generated referrals.  
 
During the latter part of the year we also launched the ClearCash pre-paid MasterCard which is being offered to 
indebted individuals who struggle to obtain or operate a bank account. The card has the facility to make bill 
payments on-line and various other tools to enable budgeting. The card also offers discounts from a variety of 
sites and gives purchase protection insurance on all purchases.  
 
We continue to closely monitor consolidation opportunities within our industry and the Group is well positioned  
to capitalise on any opportunities that may arise. We also continue to develop our back office systems to enable 
us to meet creditors’ needs in as efficient a way as possible.  
 
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 since then.  The first half of 2009 is showing a 25% 
year on year increase when compared to the first half of 2008.  These rises have been largely due to the 
expansion in consumer debt, the contraction in credit and latterly a large rise in unemployment leading to an 
inability to service debt. 
 
As the economic climate has worsened the non-seasonally adjusted quarterly IVA numbers from the insolvency 
service have shown a steady increase from the lows in the first quarter of calendar year 2008 (pre the IVA 
protocol) until the last quarter of 2008. The numbers for the first quarter of calendar year 2009 saw a small 
decrease in IVA numbers which probably reflects the impact of rising unemployment – which makes an IVA 
generally an unsuitable debt solution. Despite this ClearDebt is continuing to show good growth as disclosed in 
the operational review. The insolvency statistics also show the number of individual insolvencies continuing to 
rise and we are also seeing an excellent increase in the take up of debt management plans through Abacus.  
 
THE CLEARDEBT MODEL 
 
Unlike many 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 monthly payment to Abacus who then distributes the payment to the  ClearDebt Group plc  
CHIEF EXECUTIVE’S STATEMENT 
 
4 
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 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 current consultation process being undertaken by the Ministry of Justice. 
 
OPERATIONAL REVIEW 
 
ClearDebt – IVA Division  
 
Since 1 July 2008 (2008: 1 July 2007), the following numbers of IVAs have been arranged: 
 
 Year ended Year ended 
 30 June 2009 30 June 2008 
First quarter 84 36 
Second quarter 117 57 
Third quarter 118 67 
Fourth quarter 164 87  
 ==== ==== 
 483 247 
 ==== ==== 
 
ClearDebt has made good progress in the first three quarters of the year before seeing a rapid acceleration in the 
number of new plans in the fourth quarter. Case numbers in the first quarter are expected to be ahead of the 
fourth quarter which is especially pleasing given this first quarter of our financial year is traditionally a quieter 
period for ClearDebt and the industry in general. 
 
The Board monitors several key performance indicators  (“KPI’s”) for the business on a monthly basis including 
the number of cases passed, various conversion ratios from lead to cases passed and the cost per case acquired.   
 
Abacus– Debt Management Division  
 
The division has achieved profitability this year with a total of 2,860 plans generating income at 30 June 2009 
(2008: 1,899). Abacus currently has 2,939 paying plans in place as at 31 August 2009. Gross profitability has 
increased markedly with the low cost of acquisition of leads from ClearDebt sources versus other more 
expensive third party lead acquisition costs.  
 
Given that debtors often miss payments to the plans or delay in starting up newly agreed plans, the Board only 
include plans which have made a payment in the current month in the KPIs for total plans in place and new 
plans acquired in the month. The other main KPI monitored by the Board is in relation to the value of payments 
made by the plans each month as this has a direct bearing on fee income which is a fixed percentage of plan 
payments. 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 and KPIs continue to be refined following 
the purchase of Abacus where an increasingly large proportion of leads are being obtained from ClearDebt.  
 
FINANCIAL REVIEW 
 
Gross profit increased to £1,436,365 (2008: £107,807) as a result of increased turnover, careful control of salary 
costs, and ever continuing refinements in marketing spend and additional synergies between ClearDebt and 
Abacus.   ClearDebt Group plc  
CHIEF EXECUTIVE’S STATEMENT 
 
5 
 
 
FUTURE OUTLOOK 
 
The IVA market has continued to recover from pre Protocol levels in the first quarter of 2008 but has still not 
seen the peak reached in the 4
th
 quarter of 2006. Despite this ClearDebt has substantially increased the numbers 
of IVAs it has dealt with and has substantially outperformed the growth rate in the wider market over the period. 
 
We continue to see a significant number of appropriate referrals from ClearDebt to Abacus for debt management 
plans and as a result Abacus continues to trade strongly. 
 
Given the current economic outlook in the UK with rising unemployment I believe the Group is well placed for 
another successful year.  
 
I would finally like to pay tribute to all our employees who have bonded well together to create a very talented 
team offering the high standards of service and commitment that the company has set for itself. 
 
 
 
 
 
David Emanuel Merton Mond FCA FCCA 
Chief Executive Officer 
 
17 September 2009 
 
  ClearDebt Group Plc  
DIRECTORS AND ADVISERS 
 
6 
DIRECTORS 
G Carey FCIB 
D E M Mond FCA FCCA 
A F Smith  
A J Leon FCA 
 
SECRETARY 
D E M Mond  
 
REGISTERED OFFICE 
Nelson House 
Park Road 
Timperley 
Cheshire 
WA14 5BZ 
 
AUDITORS 
Baker Tilly UK Audit LLP 
Chartered Accountants and 
Registered Auditors 
3 Hardman Street 
Manchester  
M3 3HF 
 
BROKERS  
St Helen's Capital Plc 
15 St Helen's Place 
London 
EC3A 6DE  
 
NOMINATED ADVISER 
W H Ireland Limited 
11 St James’s Square 
Manchester 
M2 6WH 
 
REGISTRARS 
Neville Registrars 
Neville House 
18 Laurel Lane 
Halesowen 
West Midlands 
 
SOLICITORS 
Halliwells LLP 
3 Hardman Square 
Spinningfields 
Manchester 
M3 3EB 
 
BANKERS 
Barclays Bank Plc 
1 Bridge Street 
Stockport 
Cheshire 
SK1 1XU 
 
Anglo Irish Bank Corporation Plc 
10 Old Jewry 
London 
EC2R 8DN 
 
 
 
 
 
  ClearDebt Group Plc  
DIRECTORS’ REPORT 
For the year ended 30 June 2009 
 
 7 
The Directors present their report and the financial statements of the Group for the year ended 30 June 2009. 
 
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 5. 
 
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. (2008: nil) 
 
Share Capital 
Information regarding substantial shareholdings in the Company is contained in the notes to the Company 
balance sheet on page 43. 
 
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  
A J Leon FCA (Non-Executive) 
D Morris (resigned 10 July 2008) 
 
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 
2009, were 46 days (2008: 53 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 (2008: £nil). 
 
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.  ClearDebt Group Plc  
DIRECTORS’ REPORT 
For the year ended 30 June 2009 
 
 8 
Going Concern 
The financial statements are prepared on a going concern basis, which assumes the Group will continue in 
operational existence for the foreseeable future. The Group's ability to meet its future working capital 
requirements and therefore continue as a going concern is dependent upon it being able to generate significant 
revenues and free cash flow. The Directors have prepared projections which they consider to be prudent and 
demonstrate that the business can operate within its existing cash resources, and have identified a series of 
realistically achievable actions that they are committed to taking to mitigate the rate of cash outflow should 
revenues not be secured as predicted. 
 
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 
For the year ended 30 June 2009 
 
 9 
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 2009  ClearDebt Group Plc  
CORPORATE GOVERNANCE 
 
 10 
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 July 2005) 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 12.   
 
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, consisting of 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 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 
 
 11 
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 2009 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 
 
12 
 
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.  Under that law the directors are required 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 company.  
  
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  
INDEPENDENT AUDITOR’S REPORT  
TO THE MEMBERS OF CLEARDEBT GROUP PLC 
 
13 
 
 
 
 
We have audited the Group and Parent Company financial statements (“the financial statements”) which 
comprise the Group Income Statement, Group Balance Sheet, the Group Statement of Changes in Equity, the 
Group Cashflow Statement, the Parent Company Balance Sheet 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 sections 495 and 496 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 Statement of Directors’ Responsibilities in respect of the Financial Statements set 
out on page 12, 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 2009 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.  ClearDebt Group Plc  
INDEPENDENT AUDITOR’S REPORT  
TO THE MEMBERS OF CLEARDEBT GROUP PLC 
 
14 
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. 
 
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 2009 
  ClearDebt Group Plc  
GROUP INCOME STATEMENT 
For the year ended 30 June 2009 
 
15 
 
 
    
 Notes 
2009 
£ 
2008 
£ 
    
Revenue 3 3,386,935 1,869,190 
Cost of sales               (1,950,570)       (1,761,383) 
                                         
Gross profit  1,436,365  107,807 
Administrative expenses 5 (693,335)  (920,711) 
                                         
Profit/(loss) before interest, tax, depreciation and amortisation   743,030  (812,904) 
Depreciation  11 (90,279)  (75,464) 
Amortisation 10 (76,623)  (243,582) 
                                          
 
Profit/(loss) from operations  
 
3 & 4 576,128  (1,131,950) 
    
Finance costs  6 (126,600)  (122,505) 
Finance income  11,395  32,595 
                                          
Profit/(loss) before taxation   460,923  (1,221,860) 
Taxation    8 (53,861)  524,596 
                                          
Profit/(loss) after taxation for year   407,062  (697,264)  
                                            
 
Earnings/(loss) per ordinary share – basic (pence) 
 
9 0.13p (0.23p)
Earnings/(loss) per ordinary share – diluted (pence) 9 0.13p (0.23p)
  
                                        
 
The results for the period are derived from continuing activities.  
 
The entire profit is attributable to the equity holders of the parent company.  
 
No separate statement of total recognised income and expenditure is presented as all such income and expenses 
have been dealt with in the Group income statement above.  ClearDebt Group Plc  
GROUP BALANCE SHEET  
As at 30 June 2009 
 
16 
 
  2009 2008 
 Notes £ £ 
Assets  
Non-current assets 
Intangible assets 
 
 
10 4,537,299 4,504,814 
Property plant and equipment 11 189,800 244,056 
Deferred taxation 15 347,940 403,396 
                                                              
 5,075,039 5,152,266 
Current assets    
Trade and other receivables 12 729,310 472,824  
Corporation tax repayment receivables   8 - 102,793 
Cash and cash equivalents  584,593 265,537 
                                                                
  1,313,903 841,154 
                                                              
Total assets  6,388,942 5,993,420 
 
                                       
    
Equity and liabilities 
Equity 
Issued capital 
 
 
16 
 
 
6,166,812 
 
 
6,091,812 
Share premium account  279,948 279,948 
Share based compensation  97,814 97,814 
Retained losses  (2,009,256) (2,416,318) 
                                                              
    
Total equity  4,535,318 4,053,256 
                                                                
Current liabilities    
Trade and other payables 13 639,807 740,164 
Corporation tax payable  13 13,817 - 
                                                                
  653,624 740,164 
Non-current liabilities    
Financial liabilities 14 1,200,000 1,200,000 
                                                             
Total liabilities  1,853,624 1,940,164 
                                                              
Total equity and liabilities  6,388,942 5,993,420 
 
                                       
 
The financial statements were approved by the Board of Directors and authorised for issue on 17 September 
2009 and are signed on its behalf by: 
 
 
 
D E M Mond 
Director  
  ClearDebt Group Plc  
GROUP STATEMENT OF CHANGES IN EQUITY 
For the year ended 30 June 2009 
 
17 
 
 Share 
Capital 
Share 
Premium 
Other 
Reserves 
Retained 
Losses 
Total 
Equity 
 £ £ £ £ £ 
      
Balance as at 1 July 2007  5,776,812 407,046 - (1,719,054) 4,464,804 
Share issue 315,000 - - - 315,000 
Share issue costs - (29,284) - - (29,284) 
Share based compensation   (97,814) 97,814 -    - 
Loss for the period - - - (697,264) (697,264) 
 ________ _______ _______ _________ ________ 
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 
Profit for the period - - - 407,062 407,062 
 ________ _______ ______ _________ _________ 
Balance as at 30 June 2009 6,166,812 279,948 97,814 (2,009,256) 4,535,318 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
      
 
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.  
 
Other reserve 
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.  
 
Retained losses 
The Retained losses reflect losses incurred to date. 
 
  ClearDebt Group Plc  
GROUP CASHFLOW STATEMENT 
For the year ended 30 June 2009 
 
18 
   
  Year ended Year ended 
 Note 30 June 2009 30 June 2008 
  £ £ 
Cash flow from Continuing Operating Activities    
Profit/(loss) before taxation  460,923 (1,221,860) 
Depreciation of property, plant and equipment  90,279 75,464 
Amortisation of intangible assets  76,623 243,582 
(Increase)/decrease in trade and other receivables  (256,486) 160,486 
Finance costs  126,600 122,505 
Finance income   (11,395) (32,595) 
(Decrease)/increase in trade and other payables  (105,737) 185 
                                      
Cash generated by/(used) in operations  380,807 (652,233) 
Income tax refund  123,585 - 
                                       
Cash generated by/(used) in operating activities  504,392 (652,233) 
    
Cash flows from investing activities    
Acquisition of business and assets  18 (10,612) (1,250,014) 
Acquisition of intangibles  (23,496) - 
Acquisition of property, plant and equipment   (36,023) (102,817) 
Finance income  11,395 32,595 
Sale of other intangible assets  - 25,000 
                                         
Net cash absorbed by investing activities  (58,736) (1,295,236) 
    
Cash flows from financing activities    
Proceeds from new loans    - 1,600,000 
Repayment of loans  - (400,000) 
Proceeds of share issue  - 315,000 
Share issue costs  - (29,284) 
Interest on loans   (126,600) (122,505) 
                                         
Cash (used by)/generated from financing activities  (126,600) 1,363,211 
    
Increase/(decrease) in cash and cash equivalents  319,056 (584,258) 
Opening cash and cash equivalents  265,537 849,795 
                                         
Closing cash and cash equivalents  584,593 265,537 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = =  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
 19 
1. General Information  
 
ClearDebt Group Plc is a company incorporated and domiciled in the United Kingdom under the Companies Act 
2006. 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 8 Operating segments 
IAS 1  Revised – Presentation of financial statements  
IFRIC 15 Agreements for the Construction of Real Estate 
IFRIC 16 Hedges of a net investment in a foreign operation 
IFRIC 17 Distributions of non cash assets to owners. 
IFRIC 18 Transfers of assets from customers 
IAS 23  Amendment – Borrowing costs 
IAS 27 Amendment – Consolidated and Separate Financial Statements 
IFRS 1 Amendment – First time adoption of IFRS  
IFRS 2 Amendment – Share-based payment 
IFRS 3 Amendment – Business Combinations 
IFRS 7 Amendment – Financial instrument disclosure: reclassification of financial assets 
IAS 32 Amendment – Financial instruments ‘Presentation’ 
IAS 39 Amendment – Financial instruments recognition and measurement: reclassification of financial assets.  
 
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 
(IFRS), as adopted by the European Union (EU) and the requirements of the Companies Act 2006 applicable to 
companies reporting under IFRS.  
 
The financial statements have been prepared on the historic cost basis.  The principal accounting policies 
adopted are set out below. 
 
Critical Accounting Estimates and Judgements 
The preparation of the financial information in conformity with IFRS requires management to make judgement, 
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 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 the revision affects only that period or in the period of the revision and future periods if the 
revision affects both current and future periods. 
 
The principal balances that have been estimated relate to:- 
- estimates of future cashflows for the goodwill impairment review 
- estimates in respect of the future recoverability of the deferred tax asset in respect of losses brought 
forward 
- estimates of the fair value of intangible assets acquired 
- estimates of future cashflows linked to contingent consideration in respect of acquisitions 
 
 
 
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
 20 
 
2. Significant Accounting Policies (continued) 
 
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 balance sheet, 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 balance sheet 
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 group income statement on the acquisition date.  The Group carries out annual impairment tests for goodwill.  
Impairment losses in respect of goodwill are not reversed.   
 
Impairment 
At each balance sheet date, the Group reviews the carrying amounts of its intangibles 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 in 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. 
 
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. An impairment loss is 
recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case the 
impairment loss is treated as a revaluation decrease. 
 
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 increase. 
 
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
21 
 
2. Significant Accounting Policies (continued) 
 
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 Group 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:-  
 
Other intangibles  -  1 year straight line  
Development costs - 4 years straight line 
Software development costs  - 4 years 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.  
 
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.  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
22 
 
2. Significant Accounting Policies (continued) 
 
 
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 & 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 at 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 balance sheet 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. 
 
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 on the balance sheet 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 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. 
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
23 
 
2. Significant Accounting Policies (continued) 
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 Cash Flow Statement, 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. 
Borrowings 
Interest-bearing bank loans 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 balance sheet date. 
 
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 income statement because it excludes items of income or expense that are 
taxable or deductible in other years and it further excludes items that are never 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 balance sheet 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 and 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 probable that taxable 
profits will be available against which 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 enacted or substantively enacted by the balance sheet 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. 
 
Equity Reserves 
Reserves in respect of issued share capital represent the nominal value of shares issued. The share premium 
reserve represents any premium received on the issue of shares in excess of the nominal value net of transaction 
costs incurred in the issuance of the shares. 
 
Other reserves comprise reserves created in respect of equity-settled share based payments charged to the share 
premium account. 
 
Retained losses are realised losses after the payment of dividends when dividends are paid. 
 
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
24 
 
3.   Segmental Information 
The Group’s total income, loss 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 2009 
  
Insolvency 
Debt 
Management 
Total 
2009 
 
Insolvency 
Debt  
Management  
Total 
2008 
 £ £ £ £ £ £ 
Revenue  766,366 2,620,569 3,386,935 486,586 1,382,604 1,869,190 
Inter Group trading 175,125 (175,125) - - - - 
Cost of sales  (463,787) (1,486,783) (1,950,570) (533,481) (1,227,902) (1,761,383) 
 _________ _________ _________ _________ _________ _________ 
Gross profit /(loss) 477,704 958,661 1,436,365 (46,895) 154,702 107,807 
Administrative expenses  (277,307) (582,930) (860,237) (666,663) (573,094) (1,239,757) 
 _________ _________ _________ _________ _________ _________ 
Profit/(loss) from 
operations 
200,397 375,731 576,128 (713,558) (418,392) (1,131,950) 
Finance costs  - (126,600) (126,600) - (122,505) (122,505) 
Finance income  11,395 - 11,395 32,595 - 32,595 
 _________ _________ _________ ________ _________ _________ 
Profit/(loss) before 
taxation  
211,792 249,131 460,923 (680,963) (540,897) (1,221,860) 
Taxation 53,266 (107,127) (53,861)   387,161 137,435 524,596 
 _________ _________ _________ _________ _________ _________ 
Profit/(loss) for year  265,058 142,004 407,062 (293,802) (403,462) (697,264) 
 _________  _________ _________ _________  _________ _________ 
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
25 
3. Segmental Information (continued) 
 
Net operating assets are reconciled to equity funds as follows: 
 
2009 
£ 
2008 
£ 
Gross assets   
Insolvency 4,674,784 4,300,999 
Debt management 1,714,158 1,692,421 
   ________   ________ 
  6,388,942 5,993,420 
 ________ ________ 
Gross liabilities   
Insolvency 413,347 485,977 
Debt management 1,440,277 1,454,187 
   ________   ________ 
 1,853,624 1,940,164 
 ________ ________ 
   
Capital expenditure to acquire property, plant and equipment   
Insolvency 
11,715 50,033 
Debt management 24,308 52,784 
   ________   ________ 
 36,023 102,817 
 ________ ________ 
 
  
Capital expenditure to acquire intangible assets   
Insolvency 23,496 - 
Debt management - - 
   ________   ________ 
 
23,496 - 
 ________ ________ 
   
Depreciation of property, plant and equipment   
Insolvency 30,508 27,875 
Debt management 
59,771 47,589 
   _______   ________ 
 90,279 75,464 
 ________ ________ 
   
Amortisation of intangible assets   
Insolvency 65,373 68,082 
Debt management 11,250 175,500 
  _______   ________ 
 76,623 243,582 
 
________ ________ 
   
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
26 
4. Profit/(loss) from Operations  
 
2009
£
2008
£
Profit/(loss) from operations  is stated after charging:  
Depreciation of owned assets 90,279 75,464
Amortisation 76,623 243,582
Rentals – building 93,722 56,086
Auditor’s remuneration – audit 12,500 12,500
Auditor’s remuneration – other services 16,750 27,350
 
= = = = = = = = = = = = = = = = = =
      
Amounts payable to Baker Tilly UK Audit LLP and their associates in respect of both audit and non audit 
services: 
  
2009
£ %
Audit Services  
- Statutory audit 12,500 43%
Other Services  
The auditing of accounts of associates of the company pursuant to 
legislation. 
 
- Audit of subsidiaries where such services are provided by Baker Tilly 
UK Audit LLP and their associates 14,500
 
50%
Other services supplied pursuant to such legislation  
- Interim results  2,250 7%
Tax Services  
- Compliance services - 
Corporate Finance - 
 --------------- 
 29,250 
 = = = = = = = = = = 
      
Amounts payable to Baker Tilly UK Audit LLP and their associates in respect of both audit and non audit 
services: 
 
 
2008
 
 
 £ % 
Audit Services   
-  Statutory audit 12,500 31% 
Other Services  
The auditing of accounts of associates of the company pursuant to 
legislation 
 
- Audit of subsidiaries where such services are provided by Baker Tilly 
UK Audit LLP and their associates 
17,500
 
44% 
Other services supplied pursuant to such legislation  
-  Interim results 6,850 17% 
Tax Services  
-  Compliance services - 
Corporate finance 3,000 8% 
 --------------- 
 39,850 
 = = = = = = = = = =  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
27 
5. Separately Disclosable Items 
 2009 2008
 £ £
Administrative Expenses (77,500) 100,000
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
  
 ClearDebt took legal action in early 2008 against the IVA Council and others for defamation after the IVA 
Council sent correspondence to ClearDebt’s clients (and clients of other IVA companies) alleging they had 
been mis-sold IVAs. The case was settled on 21 November 2008 with the award of £250,000 to ClearDebt 
in respect of damages and legal costs together with a letter of apology. £77,500 of the provision made in 
2008 for legal costs has been released in the current year after the receipt of the monies and the discharge of 
the associated legal costs.  
 
6.    Finance Costs 2009 2008 
 £ £ 
   
Interest payable on loans 126,600 122,505 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
7.    Employees   
   
Number of Employees   
The average monthly numbers of employees (including the Directors) during the period was: 
   
 2009 2008 
 Number Number 
Directors 4 5 
Sales and marketing  1 - 
Advice team, management and administration 7 7 
IVA processing team 9 9 
DMP processing team 36 37 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 57 58 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
Employment costs 2009 2008 
 £ £ 
  
Wages and salaries 1,093,653 814,239 
Social security costs 96,973 66,253 
Pension costs - - 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 1,190,626 880,492 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
   
 
Directors’ Emoluments 2009 2008 
 £ £ 
  
Directors’ fees 48,000 48,000 
Directors’ emoluments 19,656 77,156 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 67,656 125,156 
Social security costs  2,516 9,876 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
Key management compensation 70,172 135,032 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
Key management consist of the statutory directors of the Group.  
 Number Number 
Number of Directors to whom retirement benefits are accruing under a 
money purchase scheme - - 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
    ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 28 
8.   Taxation 2009  2008 
 £ £ 
Analysis of current year 
Current tax 
UK corporation tax payable 13,817  - 
UK corporation tax repayment due - (102,793) 
Under/(overprovision) from prior years (15,412)  - 
                                   
Deferred tax 
Temporary differences, origination and reversal 150,818 (421,803) 
Effect of tax rate changing on opening balance (95,362)  - 
                                   
 
Total deferred tax debit/(credit) (55,456) (421,803) 
                                   
 
Tax on profit/(loss) for the period 53,861 (524,596) 
                                   
Factors affecting charge for year 
 2009 2008 
 £ £ 
Profit/(loss) before taxation 460,923 (1,221,860) 
                                 
Profit/(loss) multiplied by standard rate of corporation tax in the UK 
of 28% (2008: 21%) 129,058 (256,590) 
EFFECTS OF: 
Expenses not deductible 302 3,051 
Adjustment due to change of tax rate (95,362) - 
Other prior year adjustment 25,019 - 
Recognition of tax losses related to previous periods - (271,057) 
Marginal relief (5,156) - 
 ________ ________ 
 
Current tax expense/(credit) for year 53,861 (524,596) 
                                 
 
9.    Earnings/(loss) per Ordinary Share 
  
 2009 2008 
 
£ £ 
Profit/(loss) for the financial year 407,062 (697,264) 
 
                      
                    
  
Average number of ordinary shares in issue 
306,213,855 303,902,042 
Dilutive potential of warrants 
- - 
 
                      
                    
  
 
306,213,855 303,902,042 
 
                      
                    
  
Earnings/(loss) per share   
Basic loss per 2p (2008: 2p) ordinary share 
0.13p (0.23)p 
Diluted loss  per 2p (2008: 2p) ordinary share 
0.13p (0.23)p 
                                    
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 29 
 
9.    Earnings/(loss) per Ordinary Share (continued) 
  
The calculation of the basic and diluted earnings/(loss) per ordinary share of 0.13p (2008: loss of 0.23p) each 
has been based on the profit/(loss) for the relevant financial year and on 306,213,855 shares (2008: 
303,902,042). This represents the weighted average number of ordinary shares in issue.  The profit for the 
period and the weighted average number of ordinary shares for the purpose of calculating the diluted earnings 
per share are the same as for the basic earnings per share calculation.  This is because the outstanding warrants 
were exercisable at a price above the ordinary share price for most of the year and would therefore not be 
dilutive under the terms of IAS 33.  The loss for the year ended 30 June 2008 and the weighted average 
number of ordinary shares for the purposes of calculating the diluted loss per share are the same as for the 
basic loss per share calculation. This is because the outstanding warrants would have the effect of reducing the 
loss per ordinary share and therefore are not dilutive under the terms of IAS 33. 
 
 
10.  Intangible Assets 
   
 
 
 
Goodwill
 
Other 
intangibles 
Development 
costs
Software 
Development 
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 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
= = = = = = = = = = = = = = = = = = = = = = = = = = 
         Cost – 2008   
At 1 July 2007 3,068,986 - 80,312 155,293 3,304,591 
Arising on acquisition       
of subsidiary    1,333,294 208,000 -
 
- 
 
1,541,294 
Disposals - (30,000) - - (30,000) 
 ________ ________ ________ ________ ________ 
At 30 June 2008 4,402,280 178,000 80,312 155,293 4,815,885 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Amortisation – 2008   
At 1 July 2007 - - 35,259 37,230 72,489 
Charge for year - 175,500 23,506 44,576 243,582 
Disposals - (5,000) - - (5,000) 
 _______ _______ _______ _______ _______ 
At 30 June 2008 - 170,500 58,765 81,806 311,071 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Net book value    
At 30 June 2008 
4,402,280 7,500 21,547 73,487 4,504,814 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
= = = = = = = = = = = = = = = = = = = = = = = =  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
30 
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) 
 
Monthly revenue projections assume that the number of IVA cases approved will double over two years 
and then remain constant. 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 40% in 
the first year and then rise by approximately 5% in the second year and remain constant over the 
remaining three years. The appropriate discount factor used in the calculations is 10%. 
 
Assumptions are based on recent experience and estimates of how economic conditions will affect levels 
of activity in the business. 
 
The Group’s cost of capital could increase to 13.9% or insolvency income fall short of projections by 
15.5% without a matching fall in expenses before the carrying value of this part of goodwill would 
exceed the value in use. 
 
Goodwill arising on Abacus acquisition (debt management business) 
 
Monthly projections have been produced covering a five year period. Revenues are expected to grow 
32% on a monthly basis over the first year, 13% over the second year and then grow by 2.5% over the 
remaining period. Expenses are expected to increase at about 10% for the first year, 7.5% for the second 
year and remain constant 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 36% or the Group’s cost 
of capital could increase to 81% with out a matching fall in expenses 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. 
 
Monthly projections have been produced covering a five year period. Revenues are expected to grow 
500% on a monthly basis over the first year, 84% over the second year and then 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 2009 
 
31 
11.  Property, Plant and Equipment  
 
 
Fixtures and 
Fittings 
Leasehold 
Improvements Total 
  
£ 
£ 
£ 
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 
 
 = = = = = = = = = = = 
= = = = = = = = = = = 
= = = = = = = = = = = 
         Cost – 2008 
  
 
 
At 1 July 2007 
 56,082 
- 
56,082 
Additions                
 77,636 
25,181 
102,817 
Arising on acquisition of subsidiary 
 179,388 
- 
179,388 
  _______ _______ _______ 
At 30 June 2008 
 313,106 
25,181 
338,287 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Depreciation - 2008 
  
 
 
At 1 July 2007 
 18,767 
- 
18,767 
Charge for the year 
 69,116 6,348 75,464 
  _______ _______ _______ 
At 30 June 2008 
 87,883 6,348 94,231 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Net book value 
  
 
 
At 30 June 2008 
 225,223 18,833 244,056 
 
 = = = = = = = = = = = 
= = = = = = = = = = = 
= = = = = = = = = = = 
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
32 
12.  Trade and other Receivables    
 2009 2008
 £ £
Trade Receivables  568,086 212,386
Prepayments 72,967 249,412
Other receivables 88,257   11,026
 _______ _______
 729,310 472,824
 
= = = = = = = = = = = = = = = = = = = = = =
 
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 £52,133 (2008:£57,313). 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: 
 
 2009 2008 
 £ £ 
At beginning of year 57,313 31,823 
Charge for the year 84,737 25,490 
Utilised during the year (89,917) - 
 _______ _______ 
At end of year 52,133 57,313 
 = = = = = = = = = = = = = = = = = = = = = = 
 
 
 
 
The loan to D E M Mond is repayable on 31 March 2011 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. Interest of £126,600 was paid by the 
Group to D E M Mond in the year in respect of the loan.   
 
 
13.  Trade and other Payables    
  2009 2008
  £ £
  
Trade payables  243,310 249,180
Corporation tax   13,817 -
Accruals  329,265 402,514
Other payables  67,232 88,470
  
                                
  653,624 740,164
  
= = = = = = = = = = = = = = = = = = = = = =
14.  Financial Liabilities   
 
Loans outstanding at 30 June 2009 were as follows:-   
  2009 2008
  £ £
  
Loans  1,200,000 1,200,000     
  = = = = = = = = = = = = = = = = = = = = = = ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
33 
 
 
 
        The recognition of the deferred tax asset in the current year is justified based upon the improved   
        performance of the Group’s businesses and projections of adequate profits to realise the asset.  
 
 
On 23 January 2009 the Company issued 3,750,000 ordinary shares of 2p per share to acquire the 
software and database of The Debt Advice Portal. 
 
 
At 30 June 2009 (2008: Nil) there were no share options outstanding over the Company’s shares. 
15.  Deferred Taxation   
 2009 2008
 £ £
   
Accelerated capital allowances (28,614) (2,015) 
Tax losses carried forward 376,554 405,411 
                                  
At 30 June 2009 347,940 403,396 
 
= = = = = = = = = = = = = = = = = = = = = = 
Movement in the period 
2009 
£ 
2008 
£ 
   
Accelerated Capital allowances at 1 July (2,015) (2,015) 
Arising in the period  (26,599) - 
                                  
Accelerated capital allowances at 30 June  (28,614) (2,015) 
 = = = = = = = = = = = = = = = = = = = = = = 
   
At 1 July  405,411 - 
Deferred tax arising on acquisitions - (18,407) 
Deferred tax credit/(charge)  taken to the income statement 95,362 423,818 
Use of tax losses  (124,219) - 
 
                                 
At 30 June  376,554 405,411 
 
= = = = = = = = = = = = = = = = = = = = = = 
16.   Share Capital  
2009
£
2008
£
Company 
Authorised share capital 
750,000,000 (2008: 500,000,000) ordinary shares 
of 2 pence each 15,000,000
= = = = = = = = = = = = = =
15,000,000
= = = = = = = = = = = = = =
Allotted, called up and fully paid 
308,340,567 (2008: 304,590,567) ordinary shares 
of 2 pence each 
6,166,812
= = = = = = = = = = = = = =
6,091,812
= = = = = = = = = = = = = =
 
   ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
34 
 
Details of the warrants issued during the year and outstanding at 30 June 2009 are as follows: 
 
                                                                                 2009                                                    2008 
  Weighted  Weighted 
 Number of average exercise Number of average exercise 
 Warrants price in (p) warrants price in (p) 
 
Outstanding at beginning of year 40,736,775 2.0 31,599,058 2.0 
Granted during the year - - 9,137,717 2.0 
Lapsed during the year (31,599,058)        (2.0) - -
 __________ ____ __________ ____ 
 
Outstanding at the end of the year 9,137,717 2.0 40,736,775 2.0 
 __________ ____ __________ ____ 
 
No warrants were exercised during the year. The warrants outstanding at 30 June 2009 had a weighted 
average exercise price of 2.0p, and a weighted average remaining contractual life of 1.1 years.  
 
The fair value of the warrants issued is measured by use of the Black-Scholes model. The inputs into the 
Black-Scholes model are as follows:- 
 
 2009 2008 
Share price (p) - 2 
Exercise price (p) - 2 
Expected life (years) - 2 
Risk-free rate (%) - 5.75 
Expected dividends (%) - - 
 ____ ____ 
 
 
Expected volatility was based upon the historical volatility of the Group’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.  
 
There are no vesting conditions for the warrants already issued above. 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 be exercisable up until 28 March 2010. At 30 June 2009 no warrants had been issued to Money 
Helper and the directors do not presently believe that any warrants will vest for issue under the 
agreement. 
 
17.    Share Based Compensation  
 
The Group recognised the following expense related to share-based payments in the year.  
 
 2009 2008 
 £ £ 
 
Charged to share premium account - 97,814 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
16.   Share Capital (continued)  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
35 
 
18.   Acquisition 
 
On 19 January 2009, the Group purchased the business and assets of The Debt Advice Portal for a 
total consideration of £75,000 plus costs which was satisfied by the issue of 3,750,000 shares in 
ClearDebt Group Plc. At the date of acquisition The Debt Advice Portal had assets made up as 
follows: 
 
  
Book value 
Fair value 
adjustment 
 
Fair Value 
 £ £ £ 
 
Other intangible assets - 30,000 30,000 
                                    
Goodwill arising on acquisition   55,612 
   ________ 
 
   85,612 
                    
 
Settled by:   £ 
Shares issued at par    75,000 
Acquisition costs   10,612 
   ________ 
 
Total 
   
85,612 
                    
 
Cash Outflow    £ 
Cash consideration    - 
Acquisition costs    10,612 
    ________ 
     
10,612 
                     
 
 
Prior to acquisition of The Debt Advice Portal on 19 January 2009 the turnover and profits and losses 
were subsumed within another trading business and no separate record of revenue or profitability was 
formally recorded. There are therefore no details of pre-acquisition revenue or profitability that are 
able to be disclosed.  
 
Since the acquisition of The Debt Advice Portal the Group has been further developing the software 
to become the Group’s central platform to record and control referrals from all brokers and third party 
sources.  
 
Post-acquisition income from referrers on The Debt Advice Portal database at the time of purchase 
amounted to £8,592.  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
36 
 
19.  Related party transactions 
 
D E M Mond is a partner in Hodgsons, Chartered Accountants, by whom ClearDebt Group Plc and 
ClearDebt were invoiced at cost for Google advertising, travelling, book-keeping, accountancy and utility 
charges to the value of £77,310 in the year (2008: £51,115). ClearDebt have also re-charged Hodgsons at 
cost £161,198 (2008: £102,492) for certain staff salaries, council taxes and office refurbishment borne by 
ClearDebt in the year. ClearDebt Group Plc made no payments on behalf of Hodgsons in the year. 
 
D E M Mond made a loan to the Company in July 2007. As at 30 June 2009 the loan balance was 
£1,200,000 (2008: £1,200,000). 
 
The loan is repayable on 31 March 2011 or earlier at the Group’s discretion. The loan carries interest at a 
fixed rate and £126,600 was paid by the Group to D E M Mond in the year in respect of interest on the 
loan.   
 
As at 30 June 2009 ClearDebt Group Plc had net amounts due from Hodgsons of £11,457 (2008: £15,000). 
ClearDebt and Hodgsons operate a central payroll function and, at the balance sheet date £97,883 (2008: 
£32,923) of wages cost was due to Hodgsons and included within trade and other creditors. No interest is 
being charged for the outstanding amounts.  
 
Overall as at 17 September 2009 Hodgsons owes ClearDebt £203,286. No interest is being charged for the 
outstanding amounts. 
 
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 
and short term loans. 
 
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 an interest rate 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 assets. Floating rate financial assets comprise cash 
deposits on money market deposit at call and interest is received at a rate of between 0.6 % and 6 %. At 30 
June 2009 the financial assets of the Group totalled £584,593 (2008: £265,537).  
 
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.    ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
37 
20.  Financial instruments (continued) 
 
Credit risk (continued) 
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 the exposure and ageing of the trade receivables are shown at note 12. The total exposure to the 
Group at 30 June 2009 in respect of trade receivables and cash amounts to £1,152,679 (2008: £477,923). 
 
Capital 
The Group defines capital as equity and long term debt. 
 
The Group’s objectives 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 2009 is as follows: 
 
 Fixed rate  
financial  
liabilities  
Floating rate 
financial  
liabilities 
Financial 
liabilities on which 
no interest is paid 
 
 
Total 
 £ £ £ £ 
 
2009 Sterling 
 
1,420,500 
 
- 
 
- 
 
1,420,500 
                                                                         
 
2008 Sterling 
 
1,420,500 
 
- 
 
- 
 
1,420,500 
                                                                         
 
Maturity of financial liabilities    
The maturity profile of the Group’s financial liabilities as at 30 June 2009 was as follows:  
 
 2009 2008 
 £ £ 
Payable within one year - - 
Payable between one and two years 1,420,500 1,420,500 
Payable between two and five years - - 
                                   
 
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. 
 
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2009 
 
38 
21. Operating Lease Commitments 
 
Total rentals under operating leases charged to the income statement were as follows:- 
 
 2009 2008 
 £ £ 
   
Operating leases 93,722 56,086 
                                 
 
 
The future minimum lease payments under operating leases that have initial or remaining terms in excess 
of one year at 30 June 2009 were as follows:  
 
 
2009 2008 
 £ £ 
Payable within one year 93,722 93,722 
Payable between one and two years 93,722 93,722 
Payable between two and five years 89,100 182,822 
 _______ _______ 
 276,544 370,266 
 _______ _______ 
 
The operating leases represent leases on the office premises used by the Group and which are due to expire 
between April and August 2012.  ClearDebt Group Plc  
COMPANY BALANCE SHEET 
As at 30 June 2009 
 
39 
 
  2009 2008 
 
Notes 
£ £ 
Fixed Assets 
 
  
Investments 
2 
4,606,294 4,606,294 
 
 
________________ ________________ 
 
 
4,606,294 4,606,294 
Current Assets 
 
  
Debtors: amounts falling due within one year 
3 
156,882 180,850 
Debtors: amounts falling due after one year 
4 
1,336,361 1,663,008 
Cash at bank 
 
423,610 230,379 
 
 
________________ ________________ 
 
 
1,916,853 2,074,237 
Creditors: amounts falling due within one year 
5 
(26,689) (60,430) 
 
 
________________ ________________ 
Net Current Assets 
 
1,890,164 2,013,807 
 
 
________________ ________________ 
Total assets less current liabilities 
 
6,496,458 6,620,101
 
 
Creditors: amounts falling due after one year 
6 
(1,200,000) (1,200,000) 
 
 
________________ ________________ 
Net Assets 
 
5,296,458 5,420,101 
 
 
__________ __________ 
Capital And Reserves 
 
  
Called up share capital 
7 
6,166,812 6,091,812 
Share premium account 
9 
279,948 279,948 
Share based compensation reserve 
9 
97,814 97,814 
Profit and loss account 
9 
(1,248,116) (1,049,473) 
 
 
________________ ________________ 
Equity Shareholders’ Funds  5,296,458 5,420,101 
  __________ __________ 
 
The financial statements were approved by the Board of Directors and authorised for issue on 17 September 
2009 and are signed on its behalf by: 
 
 
D E M Mond 
Director 
  ClearDebt Group Plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
 40 
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. 
 
  ClearDebt Group Plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
 41 
1.     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 £198,643 (2008: £192,208). 
 
2.     Fixed Asset Investments  
 
Shares in 
subsidiary undertakings 
 £ 
Cost  
As at 1 July 2008 and 30 June 2009  4,606,294 
 
                 
Net Book Values  
At 30 June 2009 4,606,294 
 
                 
At 30 June 2008 
 
4,606,294 
 
                 
 
Shares in subsidiary undertakings are stated at cost. ClearDebt Group Plc owns directly the following 
principal subsidiaries which are included in the consolidated accounts: 
 
     Reserves 
  Class of  Profit for 30 June 
Company Activity shares Holding period 2009 
 
ClearDebt Limited Financial Advisors Ordinary 100% 331,252 (738,621) 
ClearCash Limited Pre-Paid Card Ordinary 100% - - 
Abacus (Financial 
Consultants) Limited Debt Management Ordinary 100% 123,561 181,496 
The Debt Advice Portal 
Limited Debt Management Ordinary 100% - - 
 
During the year the Debt Advice Portal Limited was formed with £1 share capital to protect the name of 
the business and assets acquired by ClearDebt Limited.  
 
3.    Debtors: amounts falling due within one year    
 2009 2008 
 £ £ 
   
Other debtors 17,500 11,026 
Prepayments and accrued income 4,306 34,748 
Deferred tax asset 135,076 135,076 
                                 
 156,882 180,850 
                                 
 
        The deferred tax asset relates to tax losses available to offset against future taxable profits. 
 
 
4.    Debtors - amounts falling due after one year 
 2009 2008 
 £ £ 
 
Amounts owed by Group undertakings 1,336,361 1,663,008 
                                     
  ClearDebt Group Plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
 42 
 
5.    Creditors : amounts falling due within one year     
 2009 2008 
 £ £ 
   
Trade creditors 8,369 45,139 
Accruals 18,320 15,291 
                                 
 26,689 60,430 
                                 
 
Included within Trade creditors is £nil (2008: £16,061) relating to amounts owed to related parties. See 
note 8. 
 
6.    Creditors – amounts falling due after one year 
 2009 2008 
 £ £ 
 
Loan 1,200,000 1,200,000 
                                     
 
 
 
 
 
 
 
7.    Share Capital   
 
2009  
£ 
2008 
£ 
Company   
Authorised share capital   
750,000,000 (2007: 500,000,000) ordinary shares of 2 pence each 15,000,000 15,000,000 
                                     
Allotted, called up and fully paid   
308,340,567 (2008: 304,590,567) ordinary shares of 2 pence each 6,166,812 6,091,812 
                                     
 
On 19 January 2009, the ClearDebt purchased the software and database of The Debt Advice Portal for a 
total consideration of £75,000 plus costs which was satisfied by the issue of 3,750,000 shares in ClearDebt 
Group Plc. 
 
At 30
 
June 2009 (2008: nil) there were no share options outstanding over the Company’s shares. 
 
Details of the warrants issued during the year and outstanding at 30 June 2009 are as follows: 
 
                                                                                      2009                                                 2008 
  Weighted  Weighted 
 Number of average exercise Number of average exercise 
 warrants price in (p) warrants price in (p) 
 
Outstanding at beginning of year 40,736,775 2.0 31,599,058 2.0 
Granted during the year - - 9,137,717  2.0 
Lapsed during the year (31,599,058) (2.0)  - 
 _________ ____ _________ ____ 
 
Outstanding at the end of the year 9,137,717 2.0 40,736,775 2.0 
 _________ ____ _________ ____ 
 
No warrants were exercised during the year. The warrants outstanding at 30 June 2009 had a weighted 
average exercise price of 2.0p, and a weighted average remaining contractual life of 1.1 years.   ClearDebt Group Plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
 43 
7. Share Capital (continued) 
 
The fair value of the warrants issued is measured by use of the Black-Scholes model. The inputs into the 
Black-Scholes model are as follows:- 
 2009 2008
Share price (p) - 2
Exercise price (p) - 2
Expected life (years) - 2
Risk-free rate (%) - 5.75
Expected dividends (%) - -
 
Expected volatility was based upon the historical volatility of the Group’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.  
 
There are no vesting conditions for the warrants issued above. 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 be 
exercisable up until 28 March 2010. At 30 June 2009 no warrants had been issued and the directors do not 
presently believe as at 30 June 2009 that any warrants will vest for issue under the agreement 
 
8. Related Party Transactions  
 
At 30 June 2009 £11,457 (2008:£16,061) was owed to Hodgsons and D E M Mond. The highest balance in 
the year was £15,000 and the lowest balance £11,269. 
10.  Substantial shareholdings 
The company is aware of the following substantial interests in the ordinary share capital as at 17 
September 2009. 
 Number of shares held % of Total 
 
D. E. M. Mond 119,054,616 38.61 
O. Mond 16,959,800 5.50 
S. Mond 13,512,231 4.38 
A. Mond 13,099,236 4.25 
D. Murray 11,921,125 3.87 
 
The Directors are not aware of any other person who is beneficially interested in 3% or more of the issued 
share capital. 
 
Board of Directors  
The Directors of the Company who held office during the year and are in office at the date of this report are 
as follows: 
 
G Carey FCIB (Non-Executive Chairman) 
D E M Mond FCA FCCA 
A F Smith  
A J Leon FCA  
D Morris (Resigned 10 July 2008) 
9.     Equity Reserves    
Company 
Share 
based compensation   
£ 
Share 
premium 
£ 
Profit and 
 loss account 
£ 
   
At 1 July 2008 97,814 279,948 (1,049,473)
Loss for the year - - (198,643)
 
                   
                   
                  
At 30 June 2009 97,814 279,948 (1,248,116)
 
                                                         ClearDebt Group Plc  
SHAREHOLDERS’ INFORMATION  
 
 44 
Trading Record   
                                                    18 months  
                                                    to June 
  2009 2008 2007 2006  
          UK GAAP 
 £ £ £ £ 
     
Revenue 3,386,935 1,869,190 420,963 174,796 
     
Profit/(loss) for the financial period 407,062 (697,264) (657,494) (502,628)
     
Cash generated by/(used in)  operations 380,807 (652,233) (809,137) (291,781)