Shares in Fairpoint, formerly known as Debt Free Direct, fell almost 62 per cent on Tuesday to 31p after the board warned of a full-year outcome below expectations.

The company, which changed its name in November in a bid to put behind it “the defining year for the IVA industry”, expects earnings before interest, tax, depreciation and amortisation to be £4.3m this year. Numis, its broker, had been forecasting ebitda of £13.5m.