INVO Invocas

RNS Number:4354F
Invocas Group plc
10 October 2007

10 October 2007

                               INVOCAS GROUP PLC
                           ("Invocas" or "the Group")

                              PRE CLOSE STATEMENT

Invocas, one of the UK's leading providers of personal and corporate debt
solutions, provides the following pre-close statement for the six months ended
30th September 2007.

The Group continues to be largely immune from the margin pressures currently
being suffered by the IVA sector. Fees for Protected Trust Deed services, which
comprise in excess of 80% of our turnover, have not been challenged to the same
extent as those for IVA services and we continue to enjoy very low rejection
rates to our Trust Deed proposals and low case failure rates.

Our business model and strategy remain valid and offer a number of advantages
over the IVA companies. Our traditional route for obtaining new leads is by
referrals and we do not secure our work through advertising. Accordingly, the
Group has not suffered the increased lead costs that others in the broader
sector have experienced.

We are on record as saying we enjoy a good relationship with TIX and have
already agreed an ongoing fee basis for Trust Deeds which should have no
material impact on our margins. Nevertheless, we are in the process of putting
in place revised software and operational procedures to enable us to deliver
Protected Trust Deeds more effectively and efficiently.

In line with our strategy we have made considerable progress in reducing our
reliance on a small number of referrers, having increased the number of smaller
volume providers and, in addition, we have also established new affinity and
referral relationships with significant creditors in order to develop
sustainable insolvency solutions for their delinquent customers.

The numbers of Trust Deed leads passed to us in the first half are, however,
behind those achieved for the same period last year. Nevertheless, the benefits
of the new relationships referred to above are beginning to result in an upturn
in new leads and we expect this trend will continue across the remainder of the
current year. Furthermore, our substantial historical caseload of Trust Deeds
continues to make a significant contribution towards turnover and profitability
and we are consequently pleased with the overall performance of the Group for
the period to 30 September.

We are also currently broadening the range of our offer by the in-house
development of additional debt solution services, including debt management
plans, and Invocas continues to be well-positioned to acquire quality debt
solutions providers in complementary areas. Our aim is to be able to offer a
full suite of debt solutions in-house, enabling us to benefit from the broad
range of opportunities and efficiency savings this 'multiliner' approach
presents. We continue to offer corporate debt solutions services and are ready
to take advantage of the expected increase in activity in this area.
Accordingly, we remain confident for the development of the Group and the
prospects for the year to 31 March 2008.

We continue to be cash generative and to enjoy an extremely strong balance sheet
with net cash of in excess of #4.0m, we are therefore well placed to take
advantage of the opportunities for consolidation and acquisition which the
sector is likely to generate over the coming year.

We will provide a more detailed trading update on 12 December 2007, when we
announce our interim results for the six months to 30 September 2007.


Website: www.invocas.com

For further information:

Invocas Group plc                         Tel: 0131 222 2460
John Hall, Chief Executive
Stephen Lightley, Finance Director

Fishburn Hedges                           Tel: 020 7544 3133 or 07747 113 930
(Financial PR Adviser)                    invocas@fishburn-hedges.co.uk
James Benjamin

Charles Stanley Securities                Tel: 020 7149 6000
(Nominated Adviser)
Philip Davies
Henry Fitzgerald-O'Connor


Notes to editors
Invocas is one of the UK's leading providers of personal and corporate debt
solutions. Its Personal Insolvency Division is firmly established as the number
one provider of Protected Trust Deeds (Scottish equivalent of IVAs). Its
Corporate Services Division has grown rapidly in recent years and already enjoys
an excellent reputation in the Scottish market place.

Invocas applies stringent minimum case acceptance criteria to Trust Deeds. It
will only accept a case if it is likely to progress smoothly to completion and
result in a successful outcome which balances the interests of both the indebted
individual and their creditors.

The Group's Newtomorrow service aims to provide indebted individuals with the
right advice, first time, every time. This is achieved in a caring and
professional manner by a team of highly experienced debt advisors delivering
front line advice. Further information on Newtomorrow can be found at
www.newtomorrow.com









                      This information is provided by RNS
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