Sales and earnings down at Fairpoint
LANCASHIRE debt management firm Fairpoint saw pre-tax profits halve last year but management said the figures were in line with expectations.
In the 12 months to the end of December the Chorley group saw revenues slip 5% to £28.4m while pre-tax profits fell from £10.5m to £5.9m.
The business said the difference was largely down to £4.3m of “exceptional revenue” last time and on an adjusted basis – taking into account amortisation and exceptionals – profits were up 7%, from £7.6m to £8.1m.
Revenues from individual voluntary arrangements (IVAs) were down to £16.4m from £19m which the company said was down to smaller fees from people on lower incomes. Revenue from debt management plans was static at £5.5m, while claims management revenue increased by 28% to £6.4m.
During the year Fairpoint acquired four debt management books with 3,400 debt plans. It has since 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.
Chief executive Chris Moat said: “Fairpoint has reported another solid set of financial and operating results for 2013, with profits in line with expectations. The group has continued to diversify its income streams and grow its profits, despite subdued conditions within the IVA market. Good progress in the development of the claims management proposition has been evident, including our first acquisition in this area. Opportunities to provide additional products and services are being pursued, including legal services, to ensure continuing momentum.
“The group has entered the year with significant growth in its debt management base, which has grown by over 60% since the end of 2012, and is well placed to build on this given its strong cash generation and access to finance facilities. The board is confident of delivering solid progress in the current year and continuing the diversification strategy.”
