Fairpoint expects to benefit from tough times
LANCASHIRE debt management company Fairpoint Group is trading well and expects to benefit from economic turbulence in the coming year.
In a trading update the Chorley-based group, formerly known as Debt Free Direct, said Government cuts and higher unemployment rates, “will be a catalyst for a resumption in growth for debt solutions”.
In the past year it said its performance has been in line with expectations and profits will be ahead of last year.
Chief executive Chris Moat said: “2010 has been a successful year for Fairpoint with growth in customer numbers, solutions offered and profitability. Our expectations are for a strong and growing market in 2011, which I am confident we are well placed to benefit from.”
The Aim-listed business now has 35,000 customers, up 34%. Of these 12,750 are on debt management plans, up from 5,500 in December 2009 due to the acquisition of four portfolios.
It said operating cashflow “remains healthy” and has allowed the group to invest more than £3m on acquisitions and return £1.5m to shareholders.
Fairpoint said the Manchester-based price comparison website Moneyextra.com, which it bought in July for £1, has been successfully integrated and is on track to add to revenues this year.
But exceptional costs associated with the integration have been £300,000 higher than expected which has reduced an earnout of 49% of future earnings payable to the vendors, Henbury Holdings, to less than 20%. This is expected to amount to £1.2m payable at the end of 2013.
