Consumer debt is becoming an ever increasing problem. Debt Free Direct, which joined AIM at the end of last December, offers individuals with serious unsecured debts, typically of £30,000 or more, advice on the best ways of tackling these problems. It frequently advises them to apply for an individual voluntary arrangement (IVA), which unlike bankruptcy allows the debtor to retain control over his everyday assets, such as a car and house, as long as a scheme of repayment is worked out with his creditors. DFD receives a fee for arranging this service. In its first set of results as a listed concern the group reported earnings before interest, tax, depreciation and amortisation (EBITDA) of £54,000 for the year to the end of April. However, in the fourth quarter EBITDA hit £190,000, which chief executive Andrew Raymond says shows how the business is progressing. He believes the company is on track to match house broker WH Ireland's forecast of £1 million pre-tax profit in the current financial year. With a current market value of £10 million this puts the shares on a modest forward of roughly 10. Raymond says debts will start to be a real problem and provide the group with more business when interest rates, currently at 40-year lows, eventually start to rise again. When that happens DFD will be in a good position to prosper from these circumstances, that are unfortunate for some.

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