History of the Group

Debt Free Direct was established in 1997 by Lathams Chartered Accountants. The aim was to provide the widest possible range of solutions to the burgeoning number of individuals with debt problems.

The first stage of the business strategy concentrated on developing the Best Advice Model and information management systems.

Focus was also given to the pioneering development of the IVA process and initiation of this new growth industry.

The business was acquired through management buy-out by three of the former partners of Lathams in May 2001 (Andrew Redmond, Paul Latham and John Reynard).

This heralded the second phase of the business strategy, which concentrated on developing a cost effective controllable lead generation system.

During this period the profile of the business grew considerably, culminating in the flotation on the AIM market in December 2002.

During 2003 the Directors identified the opportunity to grow the business further in a climate where economic, market, political and regulatory factors were all favourable. An institutional placing in September 2003 saw the business raise £3.85 million. This allowed the business to significantly reduce the level of gearing as well as invest in:

• building a broader business model
• building staff, expertise and management resources

Over the next 18 months the business continued to expand and improve operational efficiencies. As a result of the investment in infrastructure and staffing, it was well placed to take advantage of the opportunities emerging from the prevailing economic conditions.

This was further assisted by a second institutional placing in February 2005, which saw the business raise approximately £8.5 million before expenses. The funds raised provided additional working capital to allow the company to further increase the rate of organic growth above that previously planned.

In October 2006 the relocation to a new 40,000 sq. ft. operating facility in Adlington near Chorley was completed successfully. This provided considerable space for continued growth of the business.

The business continued to develop its product offering and in November 2006 was granted FSA approval to take the broking and re-mortgage business in house. DFD Mortgages became fully operational in January 2007.

In June 2007 the company completed the acquisition of Clear Start UK Limited, a rapidly growing consumer debt advice and solutions company. This resulted in the enlarged group being the clear market leader in the IVA space.

In January 2008, Debt Free Direct Group changed its name to Fairpoint Group, a name that signifies the re-organisation of the business into a group that can:

• Move into new customer acquisition channels, and;
• Diversify into new products