The firm plans to launch a short-term loan offering this year in response to growing demand from consumers for alternative forms of credit.
A new managing director has been appointed to handle the service, which will be offered separately from Fairpoint’s debt management subsidiaries, which include Debt Free Direct and Clearstart.
The decision to expand follows significant revenue growth from Fairpoint’s debt management services and secured loan offerings, and a decrease in costs for ongoing individual voluntary arrangement cases (IVAs) on a monthly basis.
Debt management revenue grew to £4.1m last year, up 32 per cent on the £3.1m reported in 2009, while pre-tax profit for debt management operations rose to £1.5m from £1m the previous year.
Despite what the firm argued were increasingly benign economic conditions, Fairpoint Group had 12,541 debt management cases live at the end of 2010, up from 5,539 at the end of the previous year. Meanwhile financial services revenue grew to £1.1m from £400,000 in 2009.
Chris Moat, chief executive of Fairpoint Group, said: "Despite economic conditions remaining relatively benign for financially stressed consumers, Fairpoint has delivered solid growth in revenue and profits. I believe that the foundations are in place for further expansion, both organically and by acquisition."
The firm also reported the closure of a website – Your Debt Solved Limited - a subidiary of Moneyextra.com Limited which was used to obtain leads for its debt management offerings.
This closed down in September last year incurring closure costs of £154,000.
Fairpoint Group already offers credit through secured loan products including mortgages and controlled banking facilities alongside its debt management services.