Jobless fuel Fairpoint profits

FAIRPOINT – which advises debtors how to pay back their loans – has seen profits rise with unemployment.

The company said yesterday that pre-tax profit for 2009 hit £5.72m compared with £1.12m a year ago. Revenue grew to £28.9m from £26.46m.

Fairpoint said it had restructured its marketing department and had sealed a number of deals where it only paid for advertising when it could be demonstrated that it had provided customers.

With the unemployment level rising last year the number of people who could not pay back their credit cards increased.

The cash-strapped debtors have increasingly looked to firms like Fairpoint to renegotiate the terms of their repayments with credit card companies, banks, utilty companies and other firms and institutions.

Chief executive Chris Moat said: “The unemployment level does make a difference to our business.

“Last year the jobless total went up and so more people needed help restructuring their debt repayments. The full year 2009 results reflect our enhanced operational platform and ability to manage strong growth in our core business segments. “Looking to 2010 we anticipate demand for our services to remain buoyant. We are excited by the opportunities presented to us from our value added services.”