Interim Results

Debt Free Direct Group PLC
20 November 2006

20 November 2006


                          DEBT FREE DIRECT GROUP PLC
          INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2006

Debt Free Direct Group (DFD), the leading debt advice and solutions company,
today announces its interim results for the six months ended 31 October 2006.

Highlights for the period include :

•   Strong financial growth

    -   Turnover                         Up 91% to £12.24m    (£6.43m in 2005)

    -   Gross profit                     Up 110% to £9.97m    (£4.74m in 2005)

    -   Adjusted PBT                     Up 128% to £4.26m    (£1.86m in 2005)
                                                        
    -   EPS                              Up 146% to 7.66p     (3.11p in 2005)

    -   Growth in the incremental, contracted for but not yet recognised,
        supervisory profits up 100% to £5.2m (£2.6m in 2005).

•   Balance sheet continues to strengthen

    -   Net assets                       £19.97m               (£17.58m in April 2006)

    -   Gross off-balance sheet, contracted for but not yet recognised,
        supervisory fee income up 102% to £31.4m (£15.5m in 2005).

•   Significant cash generated from trading

    -   Cash inflows from trading        £1.86m                (£93k in 2005)

•   Reduced advertising cost per new IVA

    -   Average cost per new IVA         £640                  (£850 in 2005)

•   Increased operational efficiency

    -   Annual turnover per employee     Up 15% to £93k        (£81k in 2005)

    -   Annual adjusted PBT per employee Up 43% to £33k        (£23k in 2005)

•   Significant growth in new IVA run-rate

    -   New IVA case run-rate            Up 101% to 536 pm     (266pm in 2005)

•   Looking ahead

    -   Anticipated profits for the financial year ended 30 April 2007 will
        comfortably meet market expectations.



Michael Blackburn, Chairman, said:

'This is another very impressive set of results.  On the back of our strong
start to the year, and with the benefit of our new premises, the Board is
confident of making further considerable progress in the remainder of the year.

Having commenced dividend payments a year ago with a maiden interim distribution
of 1.5p per share, I am pleased to report that the Board has declared an interim
dividend of 3p per share.  The board anticipates that it will be recommending a
dividend of at least 6p in aggregate for the full year.  The interim dividend
payment will be made on 29 December 2006 to shareholders on the register on 1
December 2006.

Although legislation enabling individual voluntary arrangements has been in
place since 1986, this is still a young and growing marketplace which attracts
new entrants.  During the year there have been many calls made for increased
regulation of the sector to which we are sympathetic.  Our own processes are '
regulation ready' and we welcome banks and other lenders to visit our operations
and witness both the consistency and rigour which we apply to each and every
case.  Independent research clearly demonstrates the superior returns we achieve
for lenders, whilst treating over-indebted customers fairly.

Furthermore, we continue to develop new routes to market and new products in the
UK and we are excited about the long term prospects of Debt Free Direct
Australia, which commenced trading in August 2006 and will be fully operational
by the end of this calendar year.

Personal insolvency is set to increase as more borrowers pass the point of no
return insofar as their debt/income ratio is concerned.  Whilst the growth in
that ratio has started to slow down, nonetheless the annual growth rate of
consumer credit in September 2006 was 6.3%, whereas average earnings, including
bonuses, was only rising by 4.2%.  Coupled with rising inflation and higher
borrowing costs, the scene is inexorably set for further growth in our 
business.'

Andrew Redmond, Chief Executive Officer, said:

'We are delighted by the results we have achieved by doing what is right for
both consumers and lenders.  We have clearly demonstrated that a responsible and
socially aware enterprise can compete with, and beat, those organisations more
concerned with making short term profit, than in doing what is right.

We will continue to work hard to ensure that everybody else in our marketplace
will either have to match the standards of the ethical organisations, or be
forced to face the consequences.  Compliance with ethical principles is a
necessity, not a luxury.

As a result of our long term growth in IVA cases under supervision, we are
delighted by the significant increase in cash generated from trading.  This has
allowed us to increase our interim dividend in line with the progressive policy
we first announced last year.

The last six months have seen significant progress, both operationally and
financially, and it has also been a critical period in the company's
development.  We have relocated and recruited to give us the capacity to grow
significantly in the future.  These steps have been successfully completed in
the period and the benefits will be seen in performance in the latter part of
the financial year.'

Enquiries:

Debt Free Direct Group plc
Andrew Redmond, Chief Executive Officer             0845 296 0100
Paul Latham, Finance Director                       0845 296 0200

Numis Securities
Iain McDonald                                       020 7776 1500
Lee Aston

Financial Dynamics
Ed Gascoigne-Pees                                   020 7269 7132
Nick Henderson                                      020 7269 7114


Notes

Debt Free Direct helps individuals find the best solution to their debt
problems, based upon an analysis of their particular financial circumstances.
Financial information on an individual is processed through a computer model
(the Best Advice Model) developed by Debt Free Direct in order to recommend a
solution suitable for that individual's particular financial circumstances.  The
solutions offered range from basic advice, such as simply destroying credit
cards and curbing unnecessary expenditure, to the following solutions:

•                     consolidation loan
•                     re-mortgage
•                     informal arrangement
•                     individual voluntary arrangement (IVA)
•                     bankruptcy

Debt Free Direct, based in Chorley, Lancashire and admitted to AIM in December
2002,  is unique in the marketplace in that, unlike most of its competitors who
sell specific products, Debt Free Direct looks to provide the best advice to the
consumer and recommends them the most appropriate service.

CONSOLIDATED PROFIT AND LOSS ACCOUNT
PERIOD FROM 1 MAY 2006 TO 31 OCTOBER 2006

                                                             Period from     Period from       Year from
                                                             1 May 06 to     1 May 05 to     1 May 05 to
                                                               31 Oct 06       31 Oct 05       30 Apr 06
                                                                                Restated        Restated
                                                               Unaudited       Unaudited         Audited
                                                                   £'000           £'000           £'000

TURNOVER                                                          12,235           6,427          16,230
Cost of sales                                                    (2,264)         (1,683)         (3,938)

GROSS PROFIT                                                       9,971           4,744          12,292

Administrative expenses                                          (5,645)         (2,982)         (7,290)

EBITDA                                                             4,326           1,762           5,002

Depreciation                                                       (170)            (94)           (208)
Goodwill amortisation                                              (156)           (156)           (312)

OPERATING PROFIT                                                   4,000           1,512           4,482

Interest receivable                                                  105             158             289
Interest payable and similar charges                                 (4)             (6)            (16)

PROFIT ON ORDINARY ACTIVITIES BEFORE
TAXATION                                                           4,101           1,664           4,755

Tax on profit on ordinary activities                             (1,237)           (512)         (1,553)

PROFIT ON ORDINARY ACTIVITIES AFTER
TAXATION                                                           2,864           1,152           3,202

Dividends                                                          (561)               0           (558)

RETAINED PROFIT FOR THE YEAR                                       2,303           1,152           2,644

Profit per share - basic                                           7.66p           3.11p           8.62p
Profit per share - diluted                                         7.38p           3.03p           8.39p
Profit per share - diluted and adjusted                            7.68p           3.35p           9.29p

The group has no recognised gains or losses other than the results for the
period as set out above.

All of the activities of the group are classed as continuing.


CONSOLIDATED BALANCE SHEET
AS AT 31 OCTOBER 2006

                                                      As at 31 Oct 06     As at 31 Oct 05   As at 30 Apr 06
                                                                                 Restated          Restated
FIXED ASSETS                                                     £000                £000              £000

Intangible assets                                               1,804               2,096             1,942
Tangible assets                                                 2,339                 738               928

                                                                4,143               2,834             2,870

CURRENT ASSETS
Debtors                                                        15,566               8,369            11,964
Cash at bank                                                    3,996               6,966             5,367

                                                               19,562              15,335            17,331

CREDITORS: Amounts falling due within one year                (3,702)             (2,079)           (2,559)

NET CURRENT ASSETS                                             15,860              13,256            14,772

TOTAL ASSETS LESS CURRENT LIABILITIES                          20,003              16,090            17,642

CREDITORS: Amounts falling due after more than                   (11)                (51)              (25)
one year

PROVISION FOR LIABILITIES AND CHARGES                            (21)                (64)              (39)

                                                               19,971              15,975            17,578

CAPITAL AND RESERVES
Called-up equity share capital                                    374                 372               373
Share premium account                                          13,644              13,489            13,577
Capital reserve on share options                                   86                  42                64
Profit and loss account                                         5,867               2,072             3,564

SHAREHOLDERS' FUNDS                                            19,971              15,975            17,578



CONSOLIDATED CASH FLOW STATEMENT
PERIOD FROM 1 MAY 2006 TO 31 OCTOBER 2006

                                                     Period from 1 Period from 1 May 05 Year from 1 May 05
                                                            May 06
                                                      to 31 Oct 06         to 31 Oct 05       to 30 Apr 06
                                                             £'000                £'000              £'000
                                                                               Restated           Restated

NET CASH INFLOW FROM OPERATING ACTIVITIES                    1,857                   93                565

RETURNS ON INVESTMENTS AND SERVICING OF
FINANCE

Interest received                                              105                  158                288
Interest element of finance lease rental payments              (4)                  (6)               (11)

NET CASH INFLOW FROM RETURNS ON
INVESTMENTS AND SERVICING OF FINANCE                           101                  152                277

TAXATION                                                   (1,022)                    0            (1,202)

CAPITAL EXPENDITURE

Payments to acquire tangible fixed assets                  (1,750)                 (68)              (481)
Payments to acquire intangible fixed assets                   (28)                    0                (4)

NET CASH OUTFLOW FROM CAPITAL EXPENDITURE                  (1,778)                 (68)              (485)

ACQUISITIONS

Acquisition of DFD Limited preference shares and                 0                    0               (68)
loan notes

EQUITY DIVIDENDS PAID                                        (561)                    0              (558)

NET CASH (OUTFLOW)/INFLOW BEFORE FINANCING                 (1,403)                  177            (1,471)

FINANCING

Issue of equity share capital                                   67                   35                124
Capital element of finance lease rental payments              (35)                 (28)               (69)

NET CASH INFLOW FROM FINANCING                                  32                    7                 55

(DECREASE)/INCREASE IN CASH                                (1,371)                  184            (1,416)


RECONCILIATION OF OPERATING PROFIT TO
NET CASH INFLOW FROM OPERATING ACTIVITIES

Operating profit                                            4,000                1,512               4,482
Amortisation                                                  156                  156                 312
Depreciation                                                  170                   94                 289
Loss on disposal of fixed assets                                0                    0                   1
Increase in debtors                                       (3,602)              (1,700)             (5,305)
Increase/(decrease) in creditors                            1,111                 (11)                 722
Share option charge (FRS 20)                                   22                   42                  64

Net cash inflow from operating activities                   1,857                   93                 565

RECONCILIATION OF NET CASH FLOW

(Decrease)/Increase in cash in the period                 (1,371)                  184             (1,416)

                                                          (1,371)                  184             (1,416)


CONSOLIDATED ACCOUNTS FOR THE PERIOD FROM 1 MAY 2006 TO 31 OCTOBER 2006

NOTES

1.  BASIS OF PREPARATION

The group profit and loss accounts, balance sheets and cash flow statements for the six month periods
ended 31 October 2006 and 31 October 2005 have been prepared on a basis consistent with the accounting policies 
disclosed in the group's annual report for the year ended 30 April 2006, with the exception of the adoption of 
FRS 20, Share based payments, which has been applied from 1 May 2006.

2.   EARNINGS PER SHARE

The earnings per share (basic) has been calculated using the profit for the financial period and a
weighted average number of ordinary shares in issue during the six month period to 31 October 2006 of 
37,373,577, 37,019,872 for the period ended 31 October 2005 and 37,143,181 for the year ended 30 April 2006.

The diluted EPS number takes the weighted average number of ordinary shares in issue during the six
month period to 31 October 2006 and increases this to take account of the dilutive share options existing at 
this date, resulting in a denominator of 38,894,179, 38,021,058 for the period ending 31 October 2005 and       
38,185,719 for the year ended 30 April 2006.

The diluted and adjusted EPS number uses the same number of shares as above, but is based on profits
before tax with amortisation charges added back, with the new profit number then subjected to a 30% tax charge

3.   SHARE BASED PAYMENTS

The group has applied the requirements of FRS20 to all grants of equity instruments after 7 November
2002 that were unvested at 1 May 2006.

This has resulted in the figures for the six months ended 31 October 2005 and the year ended 30 April
2006 being restated as shown below.
                                                                           Six             Six
                                                                        months          months        Year
                                                                         ended           ended       ended
                                                                        31-Oct          31-Oct      30-Apr
                                                                          2006            2005        2006
                                                                                   As restated As restated
                                                                     Unaudited       Unaudited     Audited
                                                                         £'000           £'000       £'000

Profit for the financial period under previous                           2,325           1,194       2,708
accounting policies

FRS 20 Share based payments                                                -22             -42         -64

Restated profit                                                          2,303           1,152       2,644


4.   COMPARATIVE FIGURES

The comparative figures represent the 6 month period to 31 October 2005 and the year from 1 May 2005 to 30 April 2006.

5.   STATUS OF FINANCIAL INFORMATION

The accounts of the Group for the six months to 31 October 2006 were approved by the Board on 17th November 2006.
The interim financial statements have not been audited and do not constitute statutory accounts as defined under s.240
of the Companies Act 1985.

The interim financial statements have been prepared in accordance with applicable accounting standards and are
consistent with those adopted and disclosed in the Group's statutory accounts for the year ended 30 April 2006.  Those 
accounts, upon which the auditors issued an unqualified opinion, have been delivered to the Registrar of Companies.


6.   DISTRIBUTION OF THE INTERIM REPORT

Copies of the Interim Report are being sent to shareholders.   Further copies of the Interim and Annual Report and
Accounts may be obtained from the Company's Registered Office, Cloth Hall Court, Infirmary Street, Leeds.  In addition, 
an electronic version will be available on the Company's website, www.debtfreedirect.co.uk


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