Fairpoint Group has confirmed a drop in adjusted pre-tax profits of £2.9m from the £6.9m declared in the full year results of 2010 to £4m for 2011.
Revenues reduced from £29.4m in 2010 to £25.9m for 2011, which was attributed to a £6.1m decline in IVA revenues.
However, the firm’s product diversification strategy paid off, with non-IVA revenues rising to 30 per cent of total revenue, from 17 per cent the previous year.
These revenues came predominantly from debt management where revenue grew by 31 per cent from £4.1m in 2010 to £5.3m in 2011.
The group’s financial services operations were also successful during the period, with revenue from this division growing from £1.1m for the full year of 2010 to £2.4m for the full year of 2011.
Matthew Peacock, chairman of Fairpoint Group, said the second half of the year saw a much-improved financial performance from the group.
He added: “Against a challenging IVA market place, the business realigned its cost base and grew non-IVA revenues significantly.
“A strongly cash generative business allows the board to propose an improved final dividend of 2.75p and continue to invest in acquisition activity and the development of the Group’s diversification strategy.”
Chris Moat, chief executive officer of Fairpoint Group said, the ground work laid in the second half of 2011 provides a strong platform for growth in 2012.
He explained: “In particular, we enter 2012 with a much improved cost base and a broader range of income streams.
“The prospect of a significant cash receipt from our VAT claim, leading as it will to an exceptional gain in 2012, provides a back drop for continued development and diversification of the business.”