Fairpoint in the red as it looks to new team

CONSUMER debt business Fairpoint today announced a number of boardroom changes as it revealed it made pre-tax losses of £1.2m during the first half of the year.

The Lancashire group, which was formerly known as Debt Free Direct, confirmed that Andrew Heath, 41, has been appointed finance director after filling the role in an acting capacity since last December, while former MyTravel finance director John Allkins, 59, will become senior independent non-executive director.

In line with its trading update in June, chairman Mike Blackburn, the former chief executive of Halifax, has retired and has been replaced by Matthew Peacock.

Co-founder Andy Redmond stepped down as chief executive earlier this year to be replaced by former RBS executive Chris Moat.

The Chorley group, which specialises in organising individual voluntary arrangements for consumers struggling with their debts and has moved into new areas such as debt management plans, loans and advising on switching utility providers, saw pre-tax losses of £1.2m in the six months to June 30 compared to a first half profit of £2.9m last year.

Revenues were £13.9m, down from £14.2m previously.

The AIM-listed group said that while the first half “was very disappointing”, it had made improvement since Mr Moat arrived in May and “the benefits of this will be seen in the second half”.

Chairman Mr Peacock said: “We have made rapid progress in the last three months in initiating necessary changes to the business. Chris Moat has already begun to ring the changes in the business and whilst there is still a lot to do, the board is confident in his leadership.”

Debt Free Direct, which changed its name last year, was established in 1997 as part of Lancashire accountancy firm Lathams.