Fairpoint to grow debt management with acquisitions
FAIRPOINT Group, the IVA arrangement company, plans to grow its share of the debt management market through acquisitions, and to increase its product range in 2010.
The Chorley-based group, formerly known as Debt Free Direct, today confirmed pre-tax profits, before brand amortisation and exceptional items, increased to £6.1m (2008: £2.9m) for 2009, on 9% revenue growth to £28.9m.
The company said 2009 had seen a high demand for debt products on the back of rising unemployment, high levels of personal indebtedness and the scarcity of credit.
It added that the introduction of value added services, including utility switching and pre-paid cards had increased the range of customers it can offer products to, which had been reflected in a 23% increase in new customers.
During the year, customer numbers grew from 14,346 to 17,582, with an increasing number coming from new areas of business, other than IVAs. Debt management revenues, for example, grew 35%.
The company said during 2010 it planned to increase its share of the debt management market through both organic growth and acquisitions and further diversify its value added services.
Chairman Matthew Peacock said: “We have strengthened the business over the last year, by operating more efficiently and by broadening our range of products and services. We will maintain our leading position in the IVA market and continue to grow our share of debt management plans, whilst further developing a wider range of services and products for financially stressed consumers.”
During the year the company paid down more than £4m, putting the company in line with its target to have net debt (£4.5m) at less than annual pre-tax profit.
Chris Moat, chief executive, said all key targets for 2009 had been met.
He said: “The full year 2009 results reflect our enhanced operational platform and ability to manage strong growth in our core business segments. Looking to 2010 we anticipate demand for our services to remain buoyant and we are excited by the opportunities presented to us from our value added services.”
The company has reintroduced its dividend at 2p per share.
