‘Benign’ economy slows demand for Fairpoint

LANCASHIRE debt management company Fairpoint Group has reported growth in sales and earnings but said demand for its services has slowed because of a more “benign” economic environment.

The Chorley-based group, formerly known as Debt Free Direct, saw sales rise 2% to £29.4m and pre-tax profits lift 2% to £5.8m in the year to December.

In a statement it said demand grew in the first half as the impact of growing unemployment during the later part of 2009 was felt.

But the second half of 2010 saw a, “relatively benign macroeconomic environment for these consumers, with a combination of stable unemployment rates and a low interest rate environment providing favourable conditions for consumers to manage their finances”.

The group said 2011 had started in the same vein, but rising unemployment linked to public sector cuts, coupled with rising inflation, should lead to a rise in demand for debt solutions. Nonetheless, Fairpoint more than doubled its number of debt management cases to 12,541 from 5,539 during the year.
 
Chief executive Chris Moat said: “Despite economic conditions remaining relatively benign for financially stressed consumers, Fairpoint has delivered solid growth in revenue and profits. We have also continued to strengthen the business and broaden our range of products and services, as well as growing the number of customers that we serve.

“I believe that the foundations are in place for further expansion, both organically and by acquisition, and the group is well positioned to deliver profitable growth.”