We have amended our stance on Accuma, the Manchester-based consumer finance
group backed here at 181.5p, and currently trading at 274.5p.

Chief executive and 28% shareholder Charles Howson recently unveiled
superb half-time figures to the end of January, with Accuma moving into
profit on a dramatic 310% leap in turnover to £4.1m. Losses
of £40,000 were converted to pre-tax profits of £304,000 ahead of
forecasts.

Howson argues the market for individual voluntary arrangements (IVAs), which
doubled last year and of which Accuma holds 12%, will likely double
again this year. Levels of unsecured debt are set to swell to over £200bn in 2006 amid the current ‘buy now, pay later’ culture. Accuma should
continue to thrive on the strength of the ties it has with credit agencies,
which are a key source of new case referrals and cut spend on pricey
advertising campaigns.

Last year’s £3.3m acquisition Wilson Phillips, a profitable and
cash-generative venture also boasting good referral relationships has been
integrated well too, offering up great synergies. Accuma closed the half
with £1.3m cash on the balance sheet, a figure since swelled to £5.8m following a £4.7m February placing priced at 200p.

For the year to July, analysts have pencilled in a move from losses of
£473,000 to pre-tax profits of over £2m, giving earnings of 7.52p and
a pricey forward p/e of 36.5 times. Nevertheless, this rating is more than
justified by anticipated growth rates in a buoyant market. Keep holding.