Companies: DFD ��

Lancashire-based Debt Free Direct (DFD), the debt advice and solutions company backed by Growth Company Investor at 66p, has pleased the market with a prediction of continued growth in its market place. In a bullish trading update, DFD explained that with property gloom hitting consumer spending and higher interest rates tipping many households into debt crisis, many more consumers were finding it impossible to sustain record levels of debt and 'the signs of consumer debt fatigue are already showing'. To illustrate further, personal insolvencies in the final quarter of 2004 were up nearly 35% on the same period for 2003 and in the first quarter of 2005 there was a 20% rise in court orders against people failing to meet mortgage payments. Chief executive Andrew Redmond says Debt Free Direct, which helps individuals to find the best solution to their debt problems based upon an analysis of their own particular financial circumstances, is likely to benefit from this consumer downturn. The company, which is growing its share of a rapidly expanding market and recently raised �8.5m at 142p to help fuel its growth, also says full year profits will meet market forecasts. So investors might expect an emphatic jump in profits from �376,000 to �1.89m, translating to earnings of 4.1p. However, with the shares swapping hands for a pricey 37 times forecast earnings, a spot of profit taking is most definitely in order. Reduce.

Debt Free Direct	LSE	�161.76m	433.50p	-5.00p
Click here for interactive charting
Other company articles:
James Crux’s Pick of AIM			13/03/2006
Debtmatters dances higher			20/02/2006
Cardpoint crashes as Plethora leaps			02/12/2005
Debt Free Direct declares dividend			28/11/2005
Sky lifted by Bremer			19/08/2005