ClearDebt Group Plc 
 
FINANCIAL STATEMENTS 
 
for the year ended 30 June 2008 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Registration number 02441375 ClearDebt Group Plc  
CONTENTS 
 
 
 
 Page 
 
Financial highlights 1 
Chairman’s statement 2 
Chief Executive’s statement 3-5 
Directors and advisors 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 19-40 
Company balance sheet 41 
Notes to the company financial statements 42-46 
3 year record 47 
  ClearDebt Group Plc  
FINANCIAL HIGHLIGHTS  
For the year ended 30 June 2008 
 
1 
 
 
 
 2008 
 
2007 
 
REVENUE 
 
 
£1,869,190 
 
£420,963 
 
GROSS MARGIN 
 
 
£107,807 
 
(£226,494) 
 
LOSS FROM OPERATIONS 
 
 
(£1,131,950) 
 
(£695,029) 
 
LOSS AFTER TAXATION 
 
 
(£697,264) 
 
(£657,494) 
 
CASH (USED)/GENERATED IN YEAR 
 
 
(£584,258) 
 
£128,196 
 
 
Since 1 July 2006   , the following numbers of IVAs have been arranged: 
 
 
 Year ended 
30 June 2008 
Year ended 
30 June 2007 
 
First quarter 
 
36 
 
74 
 
Second quarter 
 
57 
 
53 
 
Third quarter 
 
67 
 
46 
 
Fourth quarter 
 
87 
 
31 
 ___ ___ 
  
247 
 
204 
 ___ ___ 
  ClearDebt Group plc  
CHAIRMAN’S STATEMENT 
 
2 
 
I present the Group’s financial statements for the year ended 30 June 2008. 
 
These are the first financial statements reported by the Group in accordance with International Financial 
Reporting Standards (“IFRS”) as adopted by the European Union. The principal change to the financial 
statements relates to the treatment of goodwill. Goodwill is no longer amortised but is instead reviewed by the 
Board on an annual basis and any impairment in the carrying value is immediately recognised through the 
income statement. A full explanation of the transition to IFRS is included in the notes to the financial 
statements. 
 
The Group made an operating loss of £1,131,950 in the year (2007: loss of £695,029) resulting in a loss after 
taxation of £697,264 (2007: loss of £657,494) and whilst it is disappointing to continue to record a loss there has 
been much progress made in the year, particularly in relation to the successful diversification of the Group’s 
IVA activities into the debt management arena via the acquisition of Abacus (Financial Consultants) Limited 
(“Abacus”).  
 
The Group’s balance sheet shows net current assets of £100,990 (2007: £1,195,387) which includes cash of 
£265,537 (2007: £849,795) 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 ClearDebt and Abacus. 
 
The Group is now starting to reap the rewards of the Abacus acquisition both through the provision of a 
complete offering of appropriate debt solutions to its clients and also via the cross referral opportunities being 
achieved in terms of client acquisition. This, together with savings being achieved through synergies in 
advertising spends across the 2 divisions, leads me to look forward to the coming year with increasing 
confidence. 
 
 
Gerald Carey  
Chairman 
 
17 November 2008. 
  ClearDebt Group plc  
CHIEF EXECUTIVE’S STATEMENT 
 
3 
The IVA Protocol reached with creditor banks in February 2008 resulted in the establishment of new 
benchmarks for IVA approvals. This enabled the number of IVA approvals to start to increase once again after a 
long period of rejections by creditors whilst the protocol was being agreed. The timing of the agreement 
however left it too late to show any significant improvement in our figures for the financial year as a whole. I 
am pleased to say however that Abacus has achieved profitability in the first quarter of the new financial year  
and has agreed 3,883 debt management plans (“DMP”) since acquisition up and until 11 November 2008. 
ClearDebt Limited, since inception up and until 11 November 2008 has approved 766 cases. Income is currently 
being generated from 643 cases with 24 cases being successfully completed. With ClearDebt Limited having 
also achieved profitability in the first quarter of the new financial year the directors expect an improvement in 
ClearDebt's trading results as additional numbers of IVAs are processed during the coming year and Abacus 
continues to trade strongly. 
 
Hence, I am guardedly optimistic regarding the future. Following the launch of our Partner Programme in June 
2007, ClearDebt has now signed up over 1,100 mortgage brokers and financial advisors as ClearDebt 
introducers. We have also recently signed an exclusive distribution deal with The Mortgage Brain Limited 
making ClearDebt's Partner Programme available online to over 24,000 mortgage brokers and financial advisors 
within the UK. 
 
We are also pursuing a number of other initiatives including the provision of our DMP Protect Policy with all 
plans undertaken by Abacus about to be rolled out and the introduction in the coming months of the ClearCash 
pre-paid VISA debit card which will also allow users to pay any of their bills online. 
 
We are aware of, and closely monitor the prospects for consolidation within our industry. We still believe that 
our low cost model, which is closely aligned to creditors' current preferred positions, is an increasingly attractive 
proposition in the current market and that the Group is well positioned to capitalise on any opportunities that 
may arise. 
 
THE CONSUMER DEBT MARKET 
 
ClearDebt Group operates within the debt resolution sector, an established sub-category of financial services. 
Personal insolvencies have seen considerable growth over the last 3 years due to the expansion in consumer debt 
and the contraction in cheap credit.  
 
The debate within the wider financial services industry with regard to the approval criteria for IVAs was 
resolved in February 2008 with a new protocol being agreed between the debt industry and the creditor 
community. Prior to this protocol however, the debate caused a reduction in the number of IVAs passed each 
quarter in 2007 and the first quarter of 2008.  
 
Since then, the non seasonally adjusted second and third quarters of 2008 have seen increased numbers of IVAs 
as the economic climate has worsened, although the quarterly numbers are still not back to their peak in the 
quarter ended December 2006. 
 
The new protocol has restricted the level of fees charged by the industry in general and has had the effect of 
bringing fees very much in line with ClearDebt’s traditional low fee model.  
 
Whilst this protocol has had little or no effect on ClearDebt’s model it has resulted in wide scale industry 
changes as many other IVA providers’ traditional models were no longer financially viable with the new fee 
structure.  
 
As a leading member of the Debt Resolution Forum, ClearDebt has been in constant negotiation with the 
creditor community. We believe the new IVA Protocol launched in February 2008 will see the start of better 
relations with the creditor community and responsible and appropriate solutions being approved going forward. 
 
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.   ClearDebt Group plc  
CHIEF EXECUTIVES’S STATEMENT 
 
4 
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 - 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. 
 
It is significant that this provides the Group with a capacity to handle lower levels of debt than many of our 
major competitors. The Group believes that this will prove advantageous following the expected introduction of 
the proposed 'SIVA', a simplified IVA procedure scheduled for April 2009, following which the Company 
believes that there will be a rapid increase in lower level IVA cases. ClearDebt already has a low fee model in 
place and believes the introduction of SIVAs (to be known in future as Fast Track IVAs) could lead to the 
potential referral of large numbers of new clients directly from creditor institutions. 
 
THE ABACUS MODEL – Debt Management Plans 
 
Abacus provides services to indebted individuals by negotiating and putting in place a debt management plan 
with their creditors. The debtor makes a monthly payment to Abacus who then distributes the payment to the 
creditors as agreed in the plan less an administration fee at an agreed percentage of the 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.  
 
Many clients are cross referred between ClearDebt and Abacus allowing the Group to offer an appropriate 
advice solution to all individuals.  
 
This will become more prevalent when the current consultation process being undertaken by the Ministry of 
Justice into the possibility of a Regulated Debt Management Plan is completed and the industry in 2011 will see 
changes for which Abacus is well prepared. 
 
OPERATIONAL REVIEW 
 
ClearDebt Limited – IVA Division  
 
Since 1 July 2007, the following numbers of IVAs have been arranged: 
 
 Year ended Year ended 
 30 June 2008 30 June 2007 
 
First quarter 
 
36 
 
74 
Second quarter 57 53 
Third quarter 67 46 
Fourth quarter 87 31  
 ____ ____ 
 247 204 
 ___ ___ 
 
The impact on case numbers as a result of the rejections by creditors of cases in 2007 can be clearly seen from 
the drop in case numbers from the second quarter in 2007. The return to a growth trend in IVA cases follows the 
agreement between the British Bankers Association and The Insolvency Service of the new IVA Protocol which 
commenced in February 2008. Case numbers for the first quarter of the new financial year remain broadly in 
line with the fourth quarter level of last year with a record number of cases passed in September offsetting 
slightly lower numbers over July and August. The second quarter of the new financial year has started with 
record approvals in October, and November looks to be heading for even higher numbers. 
  ClearDebt Group plc  
CHIEF EXECUTIVES’S STATEMENT 
 
5 
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 (Financial Consultants) Limited – Debt Management Division  
 
The acquisition of Abacus has been successfully completed and the division has achieved quarterly profitability 
for the first time in the first quarter of the new financial year.  
 
As at the end of June 2008 Abacus had a total of 1,899 plans generating income. A steady run rate of 
approximately 300 new plans per month is currently being achieved which is leading to an increase in the net 
overall number of plans and generating income after allowing for failures. Currently Abacus has 2,499 paying 
plans in place (as at 11 November 2008). 
 
Given that debtors often miss payments to the plans or delay in starting up newly agreed plans, the Board now 
only include plans which have made a payment in the current month in the KPI’s 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 KPI’s continue to be refined 
following the purchase of Abacus. As a result of cross referral particularly, from ClearDebt to Abacus, the 
marketing spend by both divisions is increasingly being viewed as a single spend across the Group. 
 
FINANCIAL REVIEW 
 
Whilst the results for the year continue to show losses at an operating level it is nevertheless pleasing that the 
Group is now profitable at a gross profit level, achieving a gross profit of £107,807 (2007:loss £226,494). 
Refinement of marketing campaigns and synergies achieved across the two divisions with respect to marketing 
spend have contributed most to this turnaround together with marginally reduced staff overheads in ClearDebt 
Limited following further automation. This provides further evidence that our efficient back office processes can 
handle increased volumes without additional salary overhead. 
 
FUTURE OUTLOOK 
 
Following the agreement of the new IVA protocol with creditors in February 2008 the IVA market has returned 
to some measure of normality and our low cost model means that we can accept many cases at fee levels that 
may not be profitable for other providers with less efficient models than our own. However there are still one or 
two creditor banks that are being slow to lower their hurdle rates. We expect that Government pressure will be 
necessary to resolve the position.  
 
Although the increased dividend criteria for the acceptance of IVA cases is still limiting growth in the IVA 
market as a whole, ClearDebt is passing a steadily rising volume of cases each month. We are however seeing a 
significant number of appropriate referrals from ClearDebt to Abacus for debt management plans and as a result 
Abacus is currently trading strongly. 
 
Given the severe economic background in the UK and the economic outlook at present I am increasingly 
hopeful that the Group’s businesses will continue to make substantial progress in the coming year. 
 
 
 
 
David Emanuel Merton Mond FCA FCCA 
Chief Executive Officer 
 
17 November 2008 
  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 
Brazennose House 
Lincoln Square 
Manchester 
M2 5BL 
 
BROKERS  
St Helen's Capital Plc 
15 St Helen's Place 
London 
EC3A 6DE  
 
NOMINATED ADVISORS 
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 
St James’s Court 
Brown Street 
Manchester 
M2 2JF 
 
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 2008 
 
 7 
The Directors present their report and the financial statements of the Group for the year ended 30 June 2008. 
 
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. (2007: nil) 
 
Share Capital 
Information regarding substantial shareholdings in the Company is contained in the notes to the Company 
balance sheet on page 46. 
 
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 (appointed 15 December 2006) 
D Morris (appointed 17 July 2007 & 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 
2008, calculated in accordance with the Companies Act 1985, were 53 days (2007: 30 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 UK charities during the year (2007:£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 2008 
 
 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. Whilst the group has been loss-making to date the performance has been 
improving on a monthly basis during the year and projections suggest that no further injections of funding will 
be required for the group to continue trading. The group is currently dependent on the support of a director 
consisting of a £1.2m loan due for repayment in March 2010. 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. For this reason the directors consider that it is appropriate to prepare the accounts on a going concern 
basis. 
 
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 2008 
 
 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 
A resolution to reappoint Baker Tilly UK Audit LLP, Chartered Accountants, as auditors will be put to the 
members at the annual general meeting. 
 
By order of the Board 
 
 
 
 
 
D E M Mond 
Company Secretary 
  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, 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 to ensure 
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 2008 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 Annual 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 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 Company financial statements are required by law to 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 not appropriate to presume that 
the Group and Company will continue in business. 
 
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at 
any time the financial position of the Company and to enable them to ensure that the financial statements 
comply with the requirements of the Companies Act 1985. 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 ensuring that the Directors’ Report and other information included in the 
Annual Report is prepared in accordance with company law in the United Kingdom. They are also responsible 
for ensuring that the Annual Report includes information required by the AIM Rules. 
 
The Directors are responsible for the maintenance and integrity of the corporate and financial information 
included on the Company’s 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 which comprise the Group Income 
Statement, the Group and Parent Company Balance Sheets, the Group Cash Flow Statement, the Group 
Statement of Changes in Shareholders’ Equity and the related notes. 
 
This report is made solely to the company’s members, as a body, in accordance with section 235 of the 
Companies Act 1985. 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 
The Directors’ responsibilities for preparing the Annual Report, and the group financial statements in 
accordance with applicable law and International Financial Reporting Standards (IFRSs) as adopted by the 
European Union (“EU”), and for preparing the parent company financial statements in accordance with 
applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting 
Practice) are set out in the Statement of Directors’ Responsibilities in respect of the Financial Statements.  
 
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory 
requirements and International Standards on Auditing (UK and Ireland).  
 
We report to you our opinion as to whether the financial statements give a true and fair view and are properly 
prepared in accordance with the Companies Act 1985. We also report to you whether in our opinion the 
information given in the Directors’ Report is consistent with the financial statements. The information given in 
the Directors’ Report includes that specific information presented in the Chairman’s Statement and Chief 
Executive’s Statement that is cross referred from the Business Review section of the Directors’ Report. 
 
In addition we report to you if, in our opinion, the company has not kept proper accounting records, if we have 
not received all the information and explanations we require for our audit, or if information specified by law 
regarding Directors’ remuneration and other transactions is not disclosed. 
 
We read other information contained in the Annual Report and consider whether it is consistent with the audited 
financial statements. The other information comprises only the Directors’ Report, Chairman’s Statement, Chief 
Executive’s Statement and the Corporate Governance Statement. We consider the implications for our report if 
we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our 
responsibilities do not extend to any other information. 
 
Basis of audit opinion 
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the 
Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts 
and disclosures in the financial statements. It also includes an assessment of the significant estimates and 
judgements made by the Directors in the preparation of the financial statements, and of whether the accounting 
policies are appropriate to the group’s and company’s circumstances, consistently applied and adequately 
disclosed. 
 
We planned and performed our audit so as to obtain all the information and explanations which we considered 
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial 
statements are free from material misstatement, whether caused by fraud or other irregularity or error. In 
forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial 
statements. 
  ClearDebt Group Plc  
INDEPENDENT AUDITOR’S REPORT  
TO THE MEMBERS OF CLEARDEBT GROUP PLC 
 
14 
Opinion 
In our opinion: 
• the group financial statements give a true and fair view, in accordance with IFRSs as adopted by the 
European Union, of the state of the group’s affairs as at 30 June 2008 and of its loss for the year then 
ended; 
• the parent company financial statements give a true and fair view, in accordance with United Kingdom 
Generally Accepted Accounting Practice, of the state of the parent company’s affairs as at 30 June 
2008; 
• the financial statements  have been  properly prepared in accordance with the Companies Act 1985; and 
• the information given in the Directors’ Report is consistent with the financial statements.  
 
 
BAKER TILLY UK AUDIT LLP  
Registered Auditor 
Chartered Accountants 
Brazennose House 
Lincoln Square 
Manchester 
M2 5BL 
 
17 November 2008 
 
  ClearDebt Group Plc  
GROUP INCOME STATEMENT 
For the year ended 30 June 2008 
 
15 
 
 
  
Before separately 
disclosable items  
Separately 
disclosable items 
(Note 5)  
 
 
Total  
 
 
Total  
  2008 2008 2008 2007 
Notes £ £ £ £ 
Revenue      
    - ongoing 3 486,586 - 486,586 420,963 
    - acquisitions  1,382,604 - 1,382,604 - 
                                                                                  
  1,869,190 - 1,869,190 420,963 
Cost of sales  (1,761,383) - (1,761,383) (647,457) 
                                                                                  
Gross profit/(loss)  107,807 - 107,807 (226,494) 
Administrative expenses 5 (820,711) (100,000) (920,711) (394,001) 
                                                                                  
Losses before interest, tax, 
depreciation and 
amortisation  
 
(712,904) (100,000) (812,904) (620,495) 
Depreciation  11 (75,464) - (75,464) (13,798) 
Amortisation 10 (243,582) - (243,582) (60,736) 
                                                                                  
Loss from operations  3 & 4 (1,031,950) (100,000) (1,131,950) (695,029) 
      
Finance costs 6 (122,505) - (122,505) - 
Finance income  32,595 - 32,595 37,535 
                                                                                  
Loss before taxation   (1,121,860) (100,000) (1,221,860) (657,494) 
Taxation    8 524,596   - 524,596 - 
                                                                                  
Loss after taxation for year  (597,264) (100,000) (697,264) (657,494) 
                                                                                  
Loss per ordinary share – 
 basic (pence) 
9 
(0.20)p (0.03)p (0.23)p (0.24)P 
Loss per ordinary share – 
 diluted (pence) 
9 
(0.20)p (0.03)p (0.23)p (0.24)p 
  
                                                                              
 
The results for the period are derived from continuing activities.  
 
The entire loss 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 2008 
 
16 
 
  2008 2007 
 Notes £ £ 
Assets  
Non-current assets 
Intangible assets 
 
 
10 4,504,814 3,232,102 
Property plant and equipment 11 244,056 37,315 
Deferred taxation 15 403,396 - 
                                                              
 5,152,266 3,269,417 
Current assets    
Trade and other receivables 12 472,824  594,246 
Corporation tax repayment receivables   8 102,793 - 
Cash and cash equivalents  265,537 849,795 
                                                                
  841,154 1,444,041 
                                                              
Total assets  5,993,420 4,713,458 
 
                                       
    
Equity and liabilities 
Equity 
Issued capital 
 
 
16 
 
 
6,091,812 
 
 
5,776,812 
Share premium account  279,948 407,046 
Share based compensation 17 97,814 - 
Retained losses  (2,416,318) (1,719,054) 
                                                              
    
Total equity  4,053,256 4,464,804 
                                                                
Current liabilities    
Trade and other payables 13 740,164 248,654 
                                                                
  740,164 248,654 
Non-current liabilities    
Financial liabilities 14 1,200,000                        - 
                                                             
Total liabilities  1,940,164 248,654 
                                                              
Total equity and liabilities  5,993,420 4,713,458 
 
                                       
 
The financial statements were approved by the Board of Directors and authorised for issue on 17 November 
2008 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 2008 
 
17 
 
 Share 
Capital 
Share 
Premium 
Other 
Reserves 
Retained 
Losses 
Total 
Equity 
 £ £ £ £ £ 
      
Balance as at 1 July 2006  5,141,891 52,167 - (1,061,560) 4,132,498 
Share issue 634,921 365,079 - - 1,000,000 
Share issue costs - (10,200) - - (10,200) 
Loss for the period - - - (657,494) (657,494) 
 _____________ _____________ ____________ _______________ ______________ 
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 payment/charge  - (97,814) 97,814 -    - 
Loss for the period - - - (697,264) (697,264) 
 _____________ _____________ ____________ _______________ _______________ 
Balance as at 30 June 2008 6,091,812 279,948 97,814 (2,416,318) 4,053,256 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
      
 
 
 
The whole of the total equity is attributable to the shareholders of the parent company.  ClearDebt Group Plc  
GROUP CASHFLOW STATEMENT 
For the year ended 30 June 2008 
 
18 
   
  Year ended Year ended 
 Notes 30 June 2008 30 June 2007 
  £ £ 
Cash flow from Continuing Operating Activities    
Loss from operations  (1,131,950) (695,029) 
Depreciation of property, plant and equipment  75,464 13,798 
Amortisation of intangible assets  243,582 60,736 
Decrease/(increase) in trade and other receivables  160,486 (150,859) 
Increase/(decrease) in trade and other payables  185 (37,783) 
                                         
Cash used in operations  (652,233) (809,137) 
Income tax expense  - - 
                                          
Cash used in operating activities  (652,233) (809,137) 
    
Cash flows from investing activities    
Acquisition of subsidiary inclusive of costs, net of cash acquired 18 (1,250,014) - 
Acquisition of property, plant and equipment  (102,817) (90,002) 
Finance income  32,595 37,535 
Sale of other intangible assets  25,000 - 
                                            
Net cash absorbed by investing activities  (1,295,236) (52,467) 
    
Cash flows from financing activities    
Proceeds from new loans    1,600,000 - 
Repayment of loans  (400,000) - 
Proceeds of share issue  315,000 1,000,000 
Share issue costs  (29,284) (10,200) 
Interest on loans   (122,505) - 
                                            
Cash generated from financing activities  1,363,211 989,800 
    
(Decrease)/increase in cash and cash equivalents  (584,258) 128,196 
Opening cash and cash equivalents  849,795 721,599 
                                            
Closing cash and cash equivalents  265,537 849,795 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
19 
1. General Information  
 
ClearDebt Group plc is a company incorporated and domiciled in the United Kingdom under the Companies Act 
1985. 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 13  Customer Loyalty Programmes 
IFRIC 14  The Limit on a Defined Benefit Asset, Minimum Funding Requirement and their Interaction 
IFRIC 15  Agreements for the Construction of Real Estate 
IFRIC 16  Hedges of a net investment in a foreign operation 
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 
IAS32  Amendment – Financial instruments ‘Presentation’ 
 
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 in accordance with those parts of the Companies Act 1985 
applicable to companies reporting under IFRS for the first time. 
 
IFRS 1 ‘First time adoption of International Financial Reporting Standards’ has been applied to these financial 
statements. The financial statements have been prepared using standards and interpretation that were issued and 
effective at 30 June 2008. 
 
The financial statements have been prepared on the historic cost basis.  The principal accounting policies 
adopted are set out below. 
 
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. Whilst the group has been loss-making to date the performance has been 
improving on a monthly basis during the year and the projections suggest that no further injections of funding 
will be required for the group to continue trading. The group is currently dependent on the support of a director 
consisting of a £1.2m loan due for repayment in March 2010. 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. For this reason the directors consider that it is appropriate to prepare the accounts on a going concern 
basis. 
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
20 
2. Significant Accounting Policies (continued) 
 
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 provisions in respect or ongoing litigation and the fair 
value of share based compensation as detailed in notes 5 and 17 in the notes to the consolidated financial 
statements. 
 
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. Under the exemption 
allowed by IFRS 1 the previous carrying value, after separation of other intangibles, has been used as the 
deemed cost. 
 
Goodwill  
Goodwill on acquisition of subsidiaries 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.  At the date of transition to IFRS, 1 July 2006, the goodwill 
carrying amount under UK GAAP was tested for impairment and based on the conditions existing at the 
transition date no impairment was identified.  Thus, the carrying amount of goodwill in the Group’s IFRS 
opening balance was equal to the goodwill carrying amount under UK GAAP. From the date of transition to 
IFRS, 1 July 2006, the Group discontinued the amortisation of goodwill and implemented annual impairment 
tests for goodwill.  Impairment losses in respect of goodwill are recognised in the income statement. Impairment 
losses in respect of goodwill are not reversed.   
 
Goodwill has been re-stated on transition to IFRS as certain intangible assets, which were not recognised under 
UK GAAP, have now been separately classified, as they meet the recognition criteria under IAS 38 for an 
individual company. 
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
21 
2. Significant Accounting Policies (continued) 
 
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. 
 
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  
 
Under IAS 38 software development costs are now classified as intangible assets, whereas previously they were 
included within property plant and equipment.  
 
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.  
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
22 
2. Significant Accounting Policies (continued) 
 
Debt management services 
Fees are receivable for the management of debts on behalf of clients experiencing financial difficulties. Fees are 
recognised upon receipt of client payments on the basis that these arrangements are informal and there is no 
certainty that economic benefits will accrue until a payment is received. 
 
Commissions 
The Group also receives commission income from the referral of loans and other products. Commissions are 
recorded as they become due. 
 
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.  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 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 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 2008 
 
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 IAS39. 
For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents 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 IAS39. 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. Share premium reserves 
represent 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 2008 
 
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. During 
the year the Group acquired the entire issued share capital of Abacus (Financial Consultants) Limited and 
this business comprises the Debt Management segment.  
 
Year ended 30 June 2008 
  
Insolvency 
Debt Management 
(acquired in year) 
2008 
Total 
2007 
Total 
 £ £ £ £ 
Revenue  486,586 1,382,604 1,869,190 420,963 
Cost of sales  (533,481) (1,227,902) (1,761,383) (647,457) 
 _________ _________ _________ _________ 
Gross (loss)/profit  (46,895) 154,702 107,807 (226,494) 
Administrative expenses  (666,663) (573,094) (1,239,757) (468,535) 
 _________ _________ _________ _________ 
Loss from operations (713,558) (418,392) (1,131,950) (695,029) 
Finance costs  - (122,505) (122,505) - 
Finance income  32,595 - 32,595 37,535 
 ________ _________ _________ _________ 
Loss before taxation  (680,963) (540,897) (1,221,860) (657,494) 
Taxation   387,161 137,435 524,596 - 
 _________ _________ _________ _________ 
Loss for year  (293,802) (403,462) (697,264) (657,494) 
 _________  _________ _________ _________ 
 
The Group’s income and loss before taxation were wholly derived from the insolvency segment in the 
year ended 30 June 2007. 
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
25 
3. Segmental Information (continued) 
 
Net operating assets are reconciled to equity funds as follows: 
 
2008 
£ 
2007 
£ 
Gross operating assets   
Insolvency 
4,300,999 4,713,458 
Debt management 1,692,421 - 
   ________   ________ 
 
5,993,420 4,713,458 
 ________ ________ 
Gross liabilities   
Insolvency 485,977 248,654 
Debt management 1,454,187 - 
   ________   ________ 
 
1,940,164 248,654 
 
________ ________ 
   
Capital expenditure to acquire property, plant and equipment   
Insolvency 50,033 90,002 
Debt management 52,784 - 
   ________   ________ 
 102,817 90,002 
 
________ ________ 
   
Depreciation of property, plant and equipment   
Insolvency 
27,875 13,798 
Debt management 47,589 - 
   ________   ________ 
 75,464 13,798 
 ________ ________ 
   
Amortisation of intangible assets   
Insolvency 
68,082 60,736 
Debt management 175,500 - 
   ________   ________ 
 
243,582 60,736 
 ________ ________ 
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
26 
4. Loss from Operations  
 
2008 
£ 
2007 
£ 
Loss from operations  is stated after charging:   
Depreciation of owned assets 75,464 13,798 
Amortisation 243,582 60,736 
Rentals - building 56,086 - 
Auditor’s remuneration – audit 12,500 16,900 
Auditor’s remuneration – tax - 2,500 
Auditor’s remuneration – other services 27,350 77,000 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
      
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   
- Other services 6,850 17% 
Tax Services   
- Compliance services -  
- Advisory services -  
Corporate Finance 3,000 8% 
 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
 39,850  
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
      
Amounts payable to Baker Tilly and their associates in respect of both audit and non audit services: 
  
2007 
 
 £  % 
Audit Services   
-  Statutory audit 9,000 9% 
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  
    and their associates 
 
7,900 
 
9% 
Other services supplied pursuant to such legislation   
-  Interim results -  
Tax Services   
-  Compliance services 2,500 3% 
Corporate finance 77,000 79% 
 
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -  
 96,400 
 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =   ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
27 
5. Separately Disclosable Items 
 2008 2007 
 £ £ 
Administrative Expenses 100,000 - 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
  
 ClearDebt Limited (“ClearDebt”) is currently taking legal action against several parties involved with the 
IVA Council for defamation and libel after the IVA Council sent correspondence to ClearDebt’s clients 
(and clients of other IVA companies) alleging they had been mis-sold IVAs. The Directors of ClearDebt are 
confident that they will win the case but have provided £100,000 in relation to legal costs incurred to 30 
June 2008 in the event the case is not successful or the defendant fails to pay any favourable judgement in 
full. To date the defendant has paid £100,000 into Court as part of the ongoing litigation. 
 
6.    Finance Costs 2008 2007 
 £ £ 
   
Interest payable on loans 122,505 - 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
7.    Employees   
   
Number of Employees   
The average monthly numbers of employees (including the Directors) during the period were: 
   
 2008 2007 
 Number Number 
Directors 5 3 
Advice team, management and administration 7 2 
IVA processing team 9 8 
DMP processing team 37 - 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 58 13 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 
Employment costs 2008 2007 
 £ £ 
   
Wages and salaries 814,239 228,533 
Social security costs 66,253 19,835 
Pension costs - - 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 880,492 248,368 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
   
 
Directors’ Emoluments 2008 2007 
 £ £ 
   
Directors’ fees 48,000 48,000 
Directors’ emoluments 77,156 19,656 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 125,156 67,656 
Social security costs  9,876 2,515 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
Key management compensation 135,032 70,171 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
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 - - 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
 £ £ 
   
Highest paid director amounts included above: 57,500 19,656 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
28 
8.    Taxation 2008 2007 
 £ £ 
Analysis of current year   
Current tax    
UK corporation tax repayment due (102,793) - 
                                       
Deferred tax   
Temporary differences, origination and reversal 
Effect of tax rate changing on opening balance 
(421,803) 
- 
- 
- 
                                       
Total deferred tax credit (421,803) - 
                                       
Tax on loss for the period (524,596) - 
                                       
 
Factors affecting charge for year  
 2008 2007 
 £ £ 
Loss before taxation (1,221,860) (657,494) 
                                       
Loss multiplied by standard rate of corporation tax in the UK of 21% 
(2007: 20%) (256,590) (131,499) 
EFFECTS OF:   
Expenses not deductible 3,051 233 
Un-used tax losses carried forward - 131,266 
Recognition of tax losses related to previous periods (271,057) - 
                                       
Current tax expense for year (524,596) - 
                                       
 
9.    Loss per Ordinary Share 
  
 2008 2007 
 £ No of shares 
Pence per 
share £ No of shares 
Pence per 
share 
       
Basic loss per share (£697,264) 303,902,042 (0.23p) (£657,494) 273,011,039 (0.24p) 
       
Diluted loss per share (£697,264) 303,902,042 (0.23p) (£657,494) 273,011,039 (0.24p) 
 
The calculation of the basic loss per ordinary share is based on losses of £697,264 (2007: £657,494) and on 
303,902,042 (2007: 273,011,039) ordinary shares of 2p each being the weighted average number of ordinary 
shares in issue during the period. 
 
The loss for the period and the weighted average number of ordinary shares for the purpose of calculating the 
diluted loss per share are the same as for the basic loss per share calculation.  This is because the outstanding 
share options would have the effect of reducing the loss per ordinary share and would therefore not be dilutive 
under the terms of IAS 33. 
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
29 
 
10.  Intangible Assets 
   
 
 
 
 
 
Goodwill 
 
Other 
intangibles 
 
Development 
costs 
Software 
Development 
costs 
 
 
Total 
 
£ £ £ £ £ 
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 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
= = = = = = = = = = = = = = = = = = = = = = = = = = 
Cost – 2007 
 
    
At 1 July 2006 
3,068,986 
- 80,312 80,760 3,230,058 
Additions 
- 
- - 74,533 74,533 
 
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 
At 30 June 2007 
3,068,986 - 80,312 155,293 3,304,591 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
= = = = = = = = = = = = = = = = = = = = = = = = = = 
Amortisation – 2007      
At 1 July 2006 - - 11,753 - 11,753 
Charge for year - - 23,506 37,230 60,736 
 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 
At 30 June 2007 - - 35,259 37,230 72,489 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Net book value 
     
At 30 June 2007 
3,068,986 - 45,053 118,063 3,232,102 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
= = = = = = = = = = = = = = = = = = = = = = = = = = 
At 1 July 2006 
3,068,986 
- 68,559 80,760 3,218,305 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
Impairment Reviews 
 
The total carrying value of £4,402,280 relating to goodwill is reviewed annually for impairment. This comprises 
£3,068,986 relating to the insolvency business and £1,333,294 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.  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
30 
10.  Intangible Assets (continued) 
 
Goodwill arising on ClearDebt Limited acquisition (insolvency business) 
 
Revenue projections assume that the number of IVA cases approved will double over three years and then 
remain constant. Nominee fees per case are expected to remain at current levels for the first three years and then 
to increase by 4% for the remaining two years. Average supervisory fees are expected to remain constant, with 
IVAs lasting a maximum of 5 years. Expenses are expected to rise 10% in the first year and then approximately 
5% per year for the next four 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 by 2% or insolvency income fall short of projections by 8% 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 (Financial Consultants) Limited acquisition (debt management business) 
 
Monthly projections have been produced covering a five year period. Revenues are expected to grow 40% on a 
monthly basis over the first year, 7% over the second year and 2% for the third year, then remain constant for 
the rest of the period. Expenses are expected to increase at about 2% per year on a monthly basis. 
 
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 cost of capital could increase by 18% or debt management income fall short of projections by 50% 
with out a matching fall in expenses before the carrying value of this part of goodwill would exceed the value in 
use. 
 
Other intangible assets recognised in respect of Abacus relate to monies due from the sale of a back book of 
DMP clients together with the estimated value of the future revenue expected from clients acquired between 
April 2007 and completion of the acquisition in July 2007.  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
31 
11.  Property, Plant and Equipment  
 
 
Fixtures and 
Fittings 
Leasehold 
Improvements Total 
  
£ 
£ 
£ 
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 
 
 = = = = = = = = = = = 
= = = = = = = = = = = 
= = = = = = = = = = = 
Cost – 2007 
    
At 1 July 2006 
 40,613 - 40,613 
Additions 
 15,469 - 15,469 
 
 _______ _______ _______ 
At 30 June 2007 
 56,082 - 56,082 
 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Depreciation – 2007  
 
 
 
At 1 July 2006  
4,969 
- 
4,969 
Charge for the year  
13,798 - 13,798 
  _______ _______ _______ 
At 30 June 2007  
18,767 - 18,767 
  = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
Net book value 
  
 
 
At 30 June 2007 
 37,315 - 37,315 
 
 = = = = = = = = = = = 
= = = = = = = = = = = 
= = = = = = = = = = = 
At 1 July 2006  35,644 - 35,644 
 
 = = = = = = = = = = = 
= = = = = = = = = = = 
= = = = = = = = = = = 
 
12.  Trade and other Receivables    
 2008 2007 
 £ £ 
Trade Receivables  212,386 147,370 
Prepayments 249,412 172,291 
Other receivables    11,026  274,585 
 _______ _______ 
 472,824 594,246 
 
= = = = = = = = = = = = = = = = = = = = = = 
 
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 £57,313 (2007:£31,823). There 
are no trade receivables that are past due that have not been impaired.  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
32 
 
12.  Trade and other Receivables (continued) 
 
An analysis of the provision for impairment of receivables is as follows: 
   2008 2007 
   £ £ 
     
At beginning of year   31,823 12,432 
Charge for the year   25,490 19,391 
Utilised during the year   - - 
 
                                    
At end of year   57,313 31,823 
 
  = = = = = = = = = = = = = = = = = = = = = = 
 
13.  Trade and other Payables    
  2008 2007 
  £ £ 
    
Trade payables  249,180 104,356 
Accruals  402,514 22,510 
Other payables  88,470 121,788 
  
                                  
  740,164 248,654 
  
= = = = = = = = = = = = = = = = = = = = = = 
 
14.  Loans  
Loans outstanding at 30 June 2008 were as follows:-   
  2008 2007 
  £ £ 
    
Loans  1,200,000 -      
  = = = = = = = = = = = = = = = = = = = = = = 
 
In July 2007 David Mond provided a loan of £1,600,000 to the Group on commercial terms. £400,000 
of the loan has been repaid. The loan is repayable on 31 March 2010 or earlier at the Group’s discretion. 
Interest of £122,505 was paid by the Group to David Mond in the year. 
 
15.  Deferred Taxation   
 2008 2007 
 £ £ 
   
Accelerated capital allowances (2,015) (12,304) 
Tax losses carried forward 405,411 12,304 
                                   
At 30 June 2008 403,396                - 
 
= = = = = = = = = = = = = = = = = = = = = = 
  
Movement in the period £ £ 
   
At 30 June 2007 - - 
Deferred tax arising on acquisitions (18,407) - 
Deferred tax credit taken to the income statement 421,803 - 
 
                                  
At 30 June 2008 403,396 - 
 
= = = = = = = = = = = = = = = = = = = = = =  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
33 
The recognition of the deferred tax asset in the current year is now justified based upon the improved 
performance of the Group’s businesses and projections of adequate profits to realise the asset. No 
deferred tax asset was recognised in the prior year due to uncertainty about the timing of profits that 
would allow the asset to reverse. The deferred tax asset not recognised in 2007 amounted to £271,057. 
 
 
On 17 July 2007 the Company issued 15,750,000 ordinary shares of 2p for cash consideration of 2p 
per share. The Company also increased its authorised share capital to 750,000,000 ordinary shares of 
2p each. 
 
On 22 June 2007 the Company issued 6,091,811 warrants to subscribers for new share capital at a 
price of 2p per ordinary share. These warrants are exercisable up until 17 July 2010. At 30 June 2008 
these warrants were still outstanding.  
 
On 22 June 2007 the Company issued 3,045,906 warrants to subscribers for new share capital at a 
price of 2p per ordinary share. These warrants are exercisable up until 17 July 2010. At 30 June 2008 
these warrants were still outstanding.  
 
At 30
 
June 2008 (2007: 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 2008 are as follows: 
 
 2008 2007 
  
Number of 
Warrants 
Weighted 
average exercise 
price in (p) 
 
Number of 
warrants 
Weighted 
average exercise 
price in (p) 
 
Outstanding at beginning of year 
 
31,599,058 2.0 
 
31,599,058 2.0 
Granted during the year 9,137,717 2.0 - - 
 _________         _________         
Outstanding at the end of the year 40,736,775 2.0 31,599,058 2.0 
                                                        
 
No warrants were exercised during the year. The warrants outstanding at 30 June 2008 had a weighted 
average exercise price of 2.0p, and a weighted average remaining contractual life of 2.1 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:- 
 
 2008 2007 
Share price (p) 2 4 
Exercise price (p) 2 2 
Expected life (years) 2 3 
Risk-free rate (%) 5.75 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 2008 no warrants had been issued 
16.    Share Capital  
2008 
£ 
2007 
£ 
Company   
Authorised share capital   
750,000,000 (2007: 500,000,000) ordinary shares of 2 pence each 15,000,000 10,000,000 
               
Allotted, called up and fully paid   
304,590,550 (2007: 288,840,567) ordinary shares of 2 pence each      6,091,812 5,776,812 
                ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
34 
and the directors do not presently believe as at 30 June 2008 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 respect of the issue of 
warrants to advisers in lieu of fees in the period: - 
 2008 2007 
 £ £ 
   
Charged to share premium account  97,814 - 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
 
18.   Acquisition 
 
On 17 July 2007, the Company purchased 100% of the issued ordinary shares in Abacus (Financial 
Consultants) Limited for total consideration of £1,200,000 plus costs which was satisfied by 
£1,200,000 in cash. At the date of acquisition Abacus (Financial Consultants) Limited had assets 
made up as follows: 
 
  
Book value 
Fair value 
adjustment 
 
Fair Value 
 £ £ £ 
Other intangible assets - 208,000 208,000 
Property, plant and equipment 179,388 - 179,388 
Receivables 39,064 - 39,064 
Cash and cash equivalents 271,280 - 271,280 
Payables (297,755) (27,288) (325,043) 
Deferred taxation (2,015) (16,392) (18,407) 
Provisions (166,282)               - (166,282) 
 ________ ________ ________ 
 23,680 164,320 188,000 
                                    
Goodwill arising on acquisition   1,333,294 
   ________ 
   1,521,294 
                    
 
Settled by:   £ 
Cash consideration   1,200,000 
Acquisition costs   321,294 
   ________ 
Total   1,521,294 
                    
 
Cash Outflow    £ 
Cash consideration    1,200,000 
Acquisition costs    321,294 
Less cash and cash equivalents acquired     (271,280) 
    ________ 
    1,250,014 
                     
 
Other intangible assets recognised in respect of Abacus relate to monies due from the sale of a back 
book of DMP clients together with the estimated value of the future revenue expected from clients 
acquired between April 2007 and completion of the acquisition in July 2007. Goodwill represents 
principally staff and potential cross referral synergies between Abacus and ClearDebt.  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008 
 
35 
18.   Acquisition (continued) 
 
The results of the entities acquired during the year were: 
 Revenue Post tax profit (Loss) 
     
  15 months 
to 30 June 
2008 
Post 
acquisition 
 15 months 
to 30 June 
2008 
Post 
acquisition 
 £ £ £ £ 
Abacus (Financial Consultants) Limited 1,590,526 1,382,604 (290,130) (122,562) 
                                                                     
 
19.  Related party transactions 
 
D E M Mond is a partner in Hodgsons, Chartered Accountants, by whom ClearDebt Group Plc and 
ClearDebt Limited were invoiced at cost for google advertising, travelling, book-keeping, accountancy and 
utility charges to the value of £51,115 in the year. ClearDebt Limited and Hodgsons operate a central 
payroll function and, at the balance sheet date £ 32,923 (2007 £15,510) of wages cost is due to Hodgsons 
and included within other creditors. ClearDebt Limited have also re-charged Hodgsons at cost £102,492 for 
certain staff salaries, council taxes and office refurbishment borne by ClearDebt Limited in the year, this 
amount is outstanding in full at the balance sheet date and included within prepayments and accrued 
income. ClearDebt Group plc made several payments on behalf of Hodgsons last year, of which £15,000 
(2007: £15,000) was still due to be repaid by Hodgsons at the balance sheet date. Overall as at 17 
November 2008 ClearDebt Limited owes Hodgsons £54,871 and D E M Mond £68,507. No interest is 
being charged for the outstanding amounts. 
 
D E M Mond made a cash loan of £1,600,000 to the Company in July 2007, of which £400,000 was repaid,   
to help finance the acquisition of Abacus during the year. The loan carries interest at a fixed commercial 
rate and is repayable on 31 March 2010.  
 
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 
 
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 5.43% and   6.39 %. 
At 30 June 2008 the financial assets of the Group totalled £265,537 (2007: £849,795).  
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008  
 
36 
20.  Financial instruments (continued) 
 
Credit risk  
The group’s objective is to minimise credit risk as far as possible whilst maximising returns on financial 
assets. The financial assets of the Group are placed on money markets with the Group’s bankers and other 
banks. As such the Group is exposed to counter party risks with respect to deposits placed with its bankers. 
Financial institutions in which deposits are made are selected based on their credit rating as well as the 
returns offered.   
 
There is an inherent risk of default in trade debtors. 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 2008 in respect of trade receivables and cash amounts to £477,923 (2007:£997,165). 
 
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 2008 is as follows: 
 
 Fixed rate  
financial  
liabilities  
Floating rate 
financial  
liabilities 
Financial 
liabilities on which 
no interest is paid 
 
 
Total 
 £ £ £ £ 
2008 Sterling 1,420,500 - - 1,420,500 
                                                                         
2007 Sterling - - - - 
                                                                         
 
Maturity of financial liabilities    
The maturity profile of the Group’s financial liabilities as at 30 June 2008 was as follows:  
 
 2008 2007 
 £ £ 
   
Payable within one year - - 
Payable between one and two years 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 2008  
 
37 
21. Operating Lease Commitments 
 
Total rentals under operating leases charged to the income statement were as follows:- 
 
 2008 2007 
 £ £ 
   
Operating leases 56,086 - 
                                 
 
The future minimum lease payments under operating leases that have initial or remaining terms in excess 
of one year at 30 June 2008 were as follows:  
 
2008 2007 
 £ £ 
Payable within one year 93,722 - 
Payable between one and two years 93,722 - 
Payable between two and five years 182,822 - 
 _______ _______ 
 370,266 - 
 _______ _______ 
 
22.  Explanation of the transition to IFRS 
 
For all periods up to and including the year ended 30 June 2007 the Group prepared its financial statements 
in accordance with United Kingdom Generally Accepted Accounting Practices (UK GAAP). 
 
In preparing these financial statements, the Group has started from an opening balance sheet as at 1 July 
2006, the Group’s date of transition to IFRS, and made those changes in accounting policies and other 
restatements required by IFRS 1 for the first time adoption of IFRS. 
 
IFRS 1 allows first time adopters certain exemptions from the general requirements to retrospectively 
apply IFRS as effective for the 30 June 2006 year end. The optional exemptions taken by the Group are as 
follows: 
 
Business Combinations:  The Group has elected not to apply IFRS 3 Business Combinations 
retrospectively to business combinations that took place prior to the transition date. Consequently goodwill 
arising on business combinations before transition date remains at its previous UK GAAP carrying value as 
at the date of transition except that other intangibles which meet the recognition criteria for an individual 
company have been split out.  
 
The reconciliation between UK GAAP and IFRS for the Group’s profit/ (loss), income statement, balance 
sheet and total equity are presented below together with the principal effects identified on adoption of 
IFRS: 
 
Goodwill 
IFRS 3 ‘Business Combinations’, IAS 36 and IAS 38 resulted in a change to the carrying values of 
Goodwill. Until 30 June 2006, goodwill was amortised on a straight line basis over a period of up to 10 
years from the year of acquisition and assessed for an indication of impairment at each balance sheet date. 
 
Under IFRS 3, goodwill is no longer amortised and, instead, is assessed annually for impairment. As a 
result of this change, the goodwill will be increased by £323,052 in respect of goodwill previously 
amortised in the year ended 30
 
June 2007. There has been no change in the carrying value since the point 
of transition to IFRS. 
 
Cash Flow Statement 
 
IFRS has amended the layout and format of the cash flow statement. Changes have been made to the 
operating loss and depreciation and amortisation figures as a result of adjustments made in respect of 
goodwill amortisation and reclassification of certain tangible assets to intangible asset. 
  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008  
 
38 
Reconciliation of income statement for year ended 30 June 2007  
  
  
UK 
GAAP  
IFRS 3 
Business 
Combinations 
 
 
IFRS  
 £ £ £ 
    
Revenue 420,963 - 420,963 
Cost of Sales (647,457) - (647,457) 
 _________ _________ _________ 
Gross Loss (226,494) - (226,494) 
    
Administration expenses (394,001) - (394,001) 
Depreciation                  (51,028) 37,230 (13,798) 
Amortisation  (346,558) 285,822 (60,736) 
 _________ _________ _________ 
Total Administration expenses (791,587) 323,052 (468,535) 
 _________ _________ _________ 
    
Loss from operations (1,018,081) 323,052 (695,029) 
Finance income 37,535 - 37,535 
 _________ _________ _________ 
    
Loss before Taxation (980,546) 323,052 (657,494) 
Income tax expense - - - 
 _________ _________ _________ 
    
Loss for period (980,546) 323,052 (657,494) 
                                                             
 
Reconciliation of equity as at 30 June 2007 
 
  30 June 2007 
  £ 
   
Total equity under UK GAAP  4,141,752 
Amortisation of goodwill  323,052 
  _________ 
Total equity under IFRS  4,464,804 
                      ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008  
 
39 
Reconciliation of balance sheet as 30 June 2007 
  
 
 
UK 
GAAP  
IAS 38 
Intangible Assets 
and IFRS 3 
Business 
Combinations 
 
 
 
 
IFRS  
 £ £ £ 
Assets  
  
Non-current assets  
  
Intangible assets 2,790,987 441,115 3,232,102 
Property, plant & equipment 155,378 (118,063) 37,315 
 _________ _________ _________ 
 2,946,365 323,052 3,269,417 
Current assets 
   
Trade and other receivables 594,246 - 594,246 
Cash and cash equivalents 849,795 - 849,795 
 _________ _________ _________ 
 1,444,041 - 1,444,041 
 _________ _________ _________ 
Total Assets 4,390,406 323,052 4,713,458 
 _________ _________ _________ 
 
   
Equity and Liabilities 
Equity 
   
Issued capital 5,776,812 - 5,776,812 
Share premium account 407,046 - 407,046 
Retained losses (2,042,106) 323,052 (1,719,054) 
 _________ _________ _________ 
 4,141,752 323,052 4,464,804 
 
   
Current liabilities 
   
Trade and other payables 248,654 - 248,654 
 _________ _________ _________ 
Total current liabilities 248,654 - 248,654 
 _________ _________ _________ 
Total equity and liabilities 4,390,406 323,052 4,713,458 
 _________ _________ _________ 
 
Goodwill amortised in year ended 30 June 2007 of £323,052 has been written back to the value of goodwill in 
accordance with IFRS. Software development costs previously included within property plant and equipment 
with a net book value of £118,063 at 30 June 2007 have been reclassified to intangible assets in accordance with 
IFRS.  ClearDebt Group Plc  
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
For the year ended 30 June 2008  
 
40 
Reconciliation of balance sheet as 1
 
July 2006 (date of transition to IFRS) 
 
 UK 
GAAP  
IAS 38 
Intangible Assets 
 
IFRS  
 £ £ £ 
Non current assets 
   
Property, plant & equipment 116,404 (80,760) 35,644 
Intangible assets 3,137,545 80,760 3,218,305 
 _________ _________ _________ 
 3,253,949 - 3,253,949 
Current assets 
   
Trade and other receivables 443,387 - 443,387 
Cash  721,599 - 721,599 
 _________ _________ _________ 
 1,164,986 - 1,164,986 
 _________ _________ _________ 
Total Assets 4,418,935 - 4,418,935 
 _________ _________ _________ 
 
   
Equity and Liabilities 
Equity 
   
Issued capital 5,141,891 - 5,141,891 
Share premium account 52,167 - 52,167 
Retained losses (1,061,560) - (1,061,560) 
 _________ _________ _________ 
 4,132,498 - 4,132,498 
 
   
    
Current liabilities 
   
Trade and other payables 286,437 - 286,437 
 _________ _________ _________ 
 286,437 - 286,437 
 _________ _________ _________ 
Total liabilities 286,437 - 286,437 
 _________ _________ _________ 
Total equity and liabilities 4,418,935 - 4,418,935 
 _________ _________ _________ 
 
Software development costs previously included within property plant and equipment with a net book value of 
£80,760 at 1 July 2006 have been reclassified to intangible assets in accordance with IFRS.   ClearDebt Group Plc  
COMPANY BALANCE SHEET 
As at 30 June 2008 
 
41 
 
  2008 2007 
 
Notes 
£ £ 
Fixed Assets 
 
  
Investments 
2 
4,606,294 3,085,000 
 
 
________________ ________________ 
 
 
4,606,294 3,085,000 
Current Assets 
 
  
Debtors: amounts falling due within one year 
3 
1,843,858 1,540,487 
Cash at bank 
 
230,379 814,130 
 
 
________________ ________________ 
 
 
2,074,237 2,354,617 
Creditors: amounts falling due within one year 
4 
(60,430) (113,124) 
 
 
________________ ________________ 
Net Current Assets 
 
2,013,807 2,241,493 
 
 
________________ ________________ 
Creditors: amounts falling due after one year 
5 
(1,200,000) - 
 
 
________________ ________________ 
Net Assets 
 
5,420,101 5,326,493 
 
 
__________ __________ 
Capital And Reserves 
 
  
Called up share capital 
6 
6,091,812 5,776,812 
Share premium account 
 
279,948 407,046 
Share based compensation reserve 
8 
97,814 - 
Profit and loss account 
8 
(1,049,473) (857,365) 
 
 
________________ ________________ 
Equity Shareholders’ Funds  5,420,101 5,326,493 
  __________ __________ 
 
The financial statements were approved by the Board of Directors and authorised for issue on 17 November 
2008 and are signed on its behalf by: 
 
 
D E M Mond 
Director 
  ClearDebt Group Plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
42 
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.  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 a cost of acquisition of a subsidiary.  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 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 are exercised. 
 
  ClearDebt Group Plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
43 
1.     Loss attributable to the Members of the Parent Company  
The Company has taken advantage of Section 230 of the Companies Act 1985 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 £192,108 (2007: £135,413). 
 
2.     Fixed Asset Investments  
 
Shares in 
subsidiary undertakings 
 £ 
COST   
As at 1 July 2007 3,085,000 
Acquisition of subsidiary undertaking 1,521,294 
 
                 
At 30 June 2008 4,606,294 
 
                 
Net Book Values  
At 30 June 2008 4,606,294 
 
                 
At 30 June 2007 
 
3,085,000 
 
                 
 
Shares in subsidiary undertakings are stated at cost. ClearDebt Group plc owns directly the following 
principal subsidiaries which are included in the consolidated accounts: 
 
 
 
 
Company 
 
 
 
Activity 
 
 
Class of 
Shares 
 
 
 
Holding 
 
 
Loss For 
Period 
 
Reserves  
30 June 
2008 
      
ClearDebt Limited Financial Advisors Ordinary 100% (224,199) (1,069,874) 
ClearCash Limited Dormant Ordinary 100% - - 
Abacus (Financial 
Consultants) Limited 
Debt Management Ordinary 100% (290,130) (98,982) 
 
On 17 July 2007, the Company purchased 100% of the issued ordinary shares in Abacus (Financial 
Consultants) Limited for total consideration of £1,200,000 plus costs which was satisfied by £1,200,000 in 
cash.  
 
Other intangible assets recognised in respect of Abacus relate to monies due from the sale of a back book 
of DMP clients together with the estimated value of the future revenue expected from clients acquired 
between April 2007 and completion of the acquisition in July 2007. Goodwill represents the referrer 
contacts, business systems, staff and potential cross referral synergies between Abacus and ClearDebt. 
 
The results of the entities acquired during the year were: 
 
 Revenue Post tax profit (Loss) 
     
  15 months to 
30 June 2008 
Post 
acquisition 
 15 months to 
30 June 2008 
Post 
acquisition 
 £ £ £ £ 
Abacus (Financial Consultants) Limited 1,590,526 1,382,604 (290,130) (122,562) 
 
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 
  ClearDebt Group Plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
44 
3.    Debtors: amounts falling due within one year    
 2008 2007 
 £ £ 
   
Other debtors 11,026 31,097 
Amounts owed by group undertakings 1,663,008 1,218,733 
Acquisition advancement - 258,090 
Prepayments and accrued income 34,748 32,567 
Deferred tax asset 135,076 - 
                                 
 1,843,858 1,540,487 
                                 
 
        The deferred tax asset relates to tax losses available to offset against future taxable profits. 
 
4.    Creditors : amounts falling due within one year     
 2008 2007 
 £ £ 
   
Trade creditors 45,139 95,756 
Accruals 15,291 17,368 
   _                              
 60,430 113,124 
                                 
 
Included within Trade creditors is £16,061 (2007: £18,510) relating to amounts owed to related parties. See 
note 7 
 
5.    Creditors – amounts falling due after one year 
 2008 2007 
 £ £ 
Loan 1,200,000 - 
                                     
At 30 June  1,200,000 - 
                                     
6.    Share Capital   
 
30 June 2008  
£ 
30 June 2007 
£ 
Company   
Authorised share capital   
750,000,000 (2007: 500,000,000) ordinary shares of 2 pence each 15,000,000 10,000,000 
                                     
Allotted, called up and fully paid   
304,590,567 (2007: 288,840,567) ordinary shares of 2 pence each 6,091,812 5,776,812 
                                     
 
On 17 July 2007 the Company issued 15,750,000 ordinary shares of 2p for cash consideration of 2p per 
share. The Company also increased its authorised share capital to 750,000,000 ordinary shares of 2p each. 
 
On 22 June 2007 the Company issued 6,091,811 warrants to subscribers for new share capital at a price of 
2p per ordinary share. These warrants are exercisable up until 17 July 2010. At 30 June 2008 these 
warrants were still outstanding.  
 
On 22 June 2007 the Company issued 3,045,906 warrants to subscribers for new share capital at a price of 
2p per ordinary share. These warrants are exercisable up until 17 July 2010. At 30 June 2008 these 
warrants were still outstanding.  
 
At 30
 
June 2008 (2007: nil) there were no share options outstanding over the Company’s shares. 
  ClearDebt Group Plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
45 
6. Share Capital (continued) 
 
Details of the warrants issued during the year and outstanding at 30 June 2008 are as follows: 
 
 2008 2007 
  
Number of 
Warrants 
Weighted 
average exercise  
price in (p) 
 
Number of 
warrants 
Weighted average 
exercise price in 
(p) 
 
Outstanding at beginning of year 
 
31,599,058 2.0 
 
31,599,058 2.0 
Granted during the year 9,137,717 2.0 - - 
 _________         _________        
Outstanding at the end of the year 40,736,775 2.0 31,599,058 2.0 
 _________          _________ ___ 
 
No warrants were exercised during the year. The warrants outstanding at 30 June 2008 had a weighted 
average exercise price of 2.0p, and a weighted average remaining contractual life of 2.1 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:- 
 
 2008 2007 
Share price (p) 2 4 
Exercise price (p) 2 2 
Expected life (years) 2 3 
Risk-free rate (%) 5.75 5.75 
Expected dividends (%) - - 
 ____ ____ 
 
Notes to the company balance sheet continued  
 
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 2008 no warrants had been issued and the directors do not 
presently believe as at 30 June 2008 that any warrants will vest for issue under the agreement 
 
7. Related Party Transactions  
 
At 30 June 2008 £16,061 (2007:£18,510) was owed to Hodgsons and D E M Mond. The highest balance 
in the year was £18,510 and the lowest balance £1,762. 
 
 
 
8.     Equity Reserves    
 
Share 
based compensation   
£ 
Share 
premium 
£ 
Profit and 
 loss account 
£ 
    
Company    
At 1 July 2007 - 407,046 (857,365) 
Share issue costs  - (29,284) - 
Share based compensation  97,814 (97,814) - 
Loss for the year - - (192,108) 
 
                                                         
At 30 June 2008 97,814 279,948 (1,049,473) 
 
                                                          ClearDebt Group Plc 
NOTES TO THE COMPANY FINANCIAL STATEMENTS 
 
46 
9.    Substantial shareholdings 
The company has been notified, in accordance with S198-208 of the Companies Act 1985, of the following 
substantial interests in the ordinary share capital of the company as at 11 November 2008. 
 
 Number of shares held % of Total 
 
D. E. M. Mond 
O. Mond 
S. Mond 
A. Mond 
D. Murray 
 
119,054,616 
10,709,800 
12,848,798 
12,599,236 
11,921,125 
 
39.1% 
3.5% 
4.2% 
4.1% 
3.9% 
 
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 (appointed 15 December 2006) 
D Morris (appointed 17 July 2007 & resigned 10 July 2008) 
  ClearDebt Group Plc  
SHAREHOLDERS’ INFORMATION  
 
47 
3 Year Record  
  2006 2007 2007 2008 
  
UK GAAP 
 
UK GAAP 
Restated 
to IFRS 
 
IFRS 
 £ £ £ £ 
     
Revenue 174,796 420,963 420,963 1,869,190 
     
Loss for the financial period (771,332) (980,546) (657,494) (697,264) 
     
Cash (used)/inflow in operations (709,963) 128,196 128,196 (584,258)