(PRWEB) May 25, 2006
Parent company of The Debt Counsellors, debts.co.uk, is to float on the Alternative Investments Market (AIM) on May 24th.
The Chesterfield-based company specialises in providing advice to people with serious debt problems, organising IVA s (Individual Voluntary Arrangements) as an alternative to bankruptcy or arranging other forms of debt management as appropriate.
It is hoped that the flotation will raise £4 million of new money for the company. The valuation of the group after the issue is expected to be above £35 million.
Money raised through the flotation will be used to expand the business in order to meet the growing demand for debt solutions.
The group comprises a number of companies including The Debt Counsellors, offering debt advice on all debt problems, as well as IVAs. It is estimated that the group holds a 5% share of the IVA market.
Personal debt and insolvency is a growing problem in the UK. The Insolvency Service recently published figures showing there were 23,351 individual insolvencies in England and Wales in the first quarter of 2006. This represented an increase of 12.9% on the previous quarter and an increase of 73.4% on the same period of 2005.
Amongst those insolvencies, 15,389 resulted in bankruptcy (12.5% up on the previous quarter and 51.2% up on the corresponding quarter of 2005), and 7,961 opted for IVAs (13.7% up on the previous quarter and 141.9% up on the corresponding quarter of 2005).
It is estimated that the total of personal debt in the UK is around £1.2 trillion.