Fairpoint sees a late increase in IVAs
Tuesday March 17 2009 07:11 AM
Financial Times, 17th March 2009
Fairpoint, formerly known as Debt Free Direct, saw an increase in individual voluntary arrangements in the final quarter after a weak first half.
Chris Moat, chief executive, said the group had improved its conversion rate of leads into IVAs, and was also starting to realise the value of the debt management plan division, which was launched last summer to cater for lower levels of indebtedness.
He expected rising unemployment to drive the market, but he warned that once a period of unemployment went above six months, there was a risk of the customer breaching the IVA.
Pre-tax profits for the year to December 31 were £1.1m compared with a loss of £501,000 for the previous eight-month period, when revenues were £19.9m. Excluding exceptional reorganisation costs and amortisation, profits were £2.9m on revenues of £26.5m.