Insolvency specialist’s shares recover after profit warning

Insolvency specialist
saw its shares go up 5% after issuing a detailed trading update following an
unexpected profit warning.

last week, from Accuma and Debt Free Direct, shook Aim-listed companies dealing
with personal insolvencies, causing their shares to plunge.

Accuma shares, which stood at 222%p last week, fell nearly 60% when it said
the UK’s biggest banks were becoming reluctant to approve insolvency agreements
and that it had suffered from a ‘poorly executed’ marketing strategy, the
FT reported.

Accuma revealed yesterday that approval rates for individual voluntary
(IVAs) dropped from 94% to 78% towards the end of 2006.

The company yesterday sought to reassure the market that in early 2007
approval rates had returned to about 85%.

Further reading:

IPA to set up regulator for debt management

Debt management company benefits from
booming sector

Insolvency profession to be

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