Fairpoint goes shopping for debt management plans

FAIRPOINT, the Lancashire provider of consumer debt advice and services, has bolstered its debt management plan (DMP) business with a string of acquisitions.

In a trading statement the Chorley firm said it bought a book of 500 plans late last year and has acquired two more in the past few weeks for £4m.

The deals have added 9,000 plans, taking the firm’s total to 24,000. It also added a “small book” of payment protection insurance (PPI) claims in late December.

The acquisitions are part of a strategy to diversify away from the firm’s core individual voluntary arrangement (IVA) business which “remained challenging” during the year.

Fairpoint said it expected adjusted profits for the year to December to be in line with market expectations. The group incurred one-off costs of £500,000 related to a restructuring designed to reduce costs, and £100,000 from aborted acquisitions.

Chief executive Chris Moat said: “The group has delivered its traditional strong second half performance, despite continued subdued conditions within the IVA market. At the same time, we have continued our diversification strategy with a number of further acquisitions both before and after the 2013 year end.”