PERE Pembridge Resources Plc

    Date: 2 October 2006

On behalf of: Compass Finance Group plc ("Compass Finance")

Embargoed until: 0700hrs

                           Compass Finance Group plc                           

                              ("Compass Finance")                              

                              Pre-Close Statement                              

The Board of Compass Finance, (AIM: CAF), the IVA and debt management group, is
providing the following update on trading for the twelve months to 30 September
2006 prior to entering its close period.

Over the last twelve months, Compass Finance has taken a number of significant
steps to diversify its product and service offerings in order to offer the
complete set of personal financial solutions, and to build a robust platform
for future growth.

The Debt Advisor

The acquisition of Budsworth & Co was completed in June 2006 and enabled the
Compass Finance group (the "Group") to offer a broader range of debt management
solutions to its customers. The business was subsequently renamed The Debt
Advisor and relocated to the Group's premises in Bury. The Board is pleased to
report that The Debt Advisor is performing at the top end of management's
expectations with the new IVA case run rate more than trebling from an average
of 18 per month in the second quarter to 60 in August 2006. In the two months
since acquisition, future contracted income also increased from �0.87m to �
1.21m and management expects this upward trend in new cases to continue. From
September 2006, the Group expects this to be enhanced further as new direct
marketing channels are introduced and as cross-selling into IVAs continues,
driven by the operational model which offers the complete set of financial
solutions to its customers.

Consumer Loans Division

The secured loans market has seen a significant downturn recently as a
combination of higher interest rates and nervousness surrounding house price
inflation has resulted in a stalling effect. More significantly, the Directors
believe that direct marketing channels have come under increasing pressure
throughout the market as a whole with reduced response rates creating lower
applicant numbers and a consequential substantial increase in the cost per
lead, which will result in the Consumer Loans Division reporting a loss for the
financial year ended 30 September 2006.

The Group has implemented a comprehensive review and restructuring of its
Consumer Loans Division following these changing market dynamics, to reduce the
cost base of the Consumer Loans Division with the intention of enabling the
business to return to profitability in 2007. The cost reductions will be
achieved through a reduction in headcount costs and the cessation of certain
marketing activities which are no longer delivering the required results. It is
the Directors' belief that the remaining marketing channels, aligned with the
restructured workforce, will create a more streamlined Consumer Loans Division.

Affinity Contract

The Group has achieved contractual completion of its first lead affinity deal
with one of the UK's largest high street mortgage lenders to refer leads. This
partnership has now been successfully launched with leads starting to be
referred from early September. Such relationships will become the cornerstone
of the Group's customer acquisition strategy.

Summary

It is the Directors' belief that the growing Debt Advisory Division, together
with the restructured and more streamlined Consumer Loans Division, will enable
the Group to focus management time and investment into growing its chosen
markets of IVA and debt management as well as remortgages and secured lending.

Compass Finance will announce its preliminary results on 7 December 2006 at
which time the Board expects to announce further progress with its IVA business
and the conclusion of the restructuring and review of the Consumer Loans
Division.

  - Ends -
   
For further information:

Compass Finance Group PLC

Mike Sutcliffe (Chief Executive) 0870 950 0000

Compass Finance Group PLC

Mark Walker (Finance Director)  0870 950 0000

Redleaf Communications

Emma Kane                       020 7822 0200

Background notes:

Based in Bury in Lancashire, with a customer base across the UK, Compass
Finance provides a complete range of debt advisory solutions through the
brokering and packaging of mortgages, secured loans and unsecured loans as well
as the provision of individual voluntary arrangements (IVAs) and debt
management plans, for clients requiring debt consolidation or debt
restructuring solutions. Compass Finance earns its income from commissions and
fees received from third party lenders and from client IVA and debt management
plans.

IVA case run rates are defined as completed consents returned to the business
by individual debtors.

Further information is available at www.compassfinancegroupplc.co.uk



END

Pembridge Resources (LSE:PERE)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024

Pembridge Resources (LSE:PERE)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024