RLX Relax Grp

    RNS Number : 0709C
  Relax Group PLC
  27 August 2008
   



    For release at 07.00 Wednesday August 27th 2008



    Relax Group plc ("Relax" or "the Group")

    Pre Close Trading update for the year ended July 31st 2008


    The Board of Relax Group plc is pleased to announce that trading for the year ended satisfactorily with business across most of the
Group on an upward trend. The Board expects the results for the year ended 31 July 2008 to be in line with market expectations.

    The acquisitions, of both PB Recovery in February 2008 and Relax Finance in May 2008, have been fully integrated with the latter now
providing additional routes to market. It is the Board's opinion that, with the increased breadth of product offerings which these
acquisitions have provided, the Group is well placed to produce further growth. 

    Potential areas of organic growth include managed banking facilities and managing arrears books on behalf of financial institutions by
counselling their clients who have arrears and offering best advice along with access to appropriate solutions. The Group has already
engaged its first institution and is in discussion with a number of other financial institutions concerning this offering.

    This increased diversification of the Group through acquisition and organic growth has enabled management to redeploy resources to meet
fluctuations in demand.  At the time of the IPO approximately 80% of Group revenue was derived from IVA's. However, IVA's now only
contribute approximately 35% of Group revenues as the Board has expanded the range of services it provides. As well as providing new revenue
opportunities, the expansion of the Group's product offering has significantly reduced its dependence on IVA's.

    The IVA market has stabilised following an agreement with lenders: whilst fee levels have reduced, this has been more than offset by the
reduced cost of generating enquiries and efficiency savings in our back office systems.

    The number of Debt Management Plans under management has increased by in excess of 30% over the same period in the previous year and
remains a favoured solution to over indebted individuals with relatively low disposable incomes.


    Loans and mortgage completions are momentarily constrained by the reduced availability of funding from lenders: however the Board
anticipates that the accessibility to funding from lenders will improve as we move towards 2009.

    Over the last 10 years the Group has continually evolved and increased its service offering and this philosophy will continue as and
when new areas are identified which are deemed by the Board to offer attractive returns for the Group.


    Paul Carter, Chief Executive Officer, commented "We are extremely pleased with the progress the Group has made despite a more difficult
environment. The Group has always looked at providing more than IVA's and with the two recent acquisitions we have been able to further
broaden and deepen our product offering to meet the needs of the over-indebted individual.  We continue to look at ways of further
developing the Group both organically and by acquisition and are confident of a satisfactory outcome in the current year.

    The well documented difficulties facing the UK economy will, we believe, ensure that the services and products we provide will very much
continue to be in demand and we look forward to the future with confidence".


    Enquiries:

    Paul Carter, Chief Executive Officer            0870 990 9714
    Relax Group plc                    

    Chris Steele                                                0207 034 4759

    Adventis Financial PR                                 07979 604 687

    Mark Percy / Parimal Kumar                      0207 107 8000
    Seymour Pierce Limited





This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
TSTFKAKKOBKDAFB

Relax Grp (LSE:RLX)
Gráfica de Acción Histórica
De May 2024 a Jun 2024

Relax Grp (LSE:RLX)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024