Its shares have come off about 70% this morning but analysts reckon there may be a buying opportunity in Debtmatters.

The sharp sell off follows an announcement that management at the Individual Voluntary Arrangement (IVA) provider is thinking of selling off the business following a clampdown in the fees it earns from banks. Debtmatters earns its money from setting up IVAs for borrowers who have difficulty in repaying debt.

But the banks have complained they don't recoup a sufficient return. This morning management warned it 'may no longer be able to deliver IVAs profitably.' It has appointed broker Charles Stanley to advise on a 'full strategic review.'

Analysts at independent broker Numis are quick to point out the buying opportunity. Roger Tejwani has given a break-up target price of 100p, double the 47.5p the shares are currently trading at, having fallen 20p in early trading.

'On a standalone basis the company's share price is likely to deteriorate significantly with price weakness expected across the sector,' added Tejwani.