Invocas

10 October 2007

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




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




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




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






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