Credit agency on the lookout for acquisitions after strong 2009

The Leeds-based consumer credit reference and marketing agency saw turnover rise eight per cent to 53.6m last year, while pre-tax profit shot up by 35 per cent to 7.1m.

John McAndrew, the group chief executive, said: "To do a management buyout and grow the business when the market is going backwards is something to be proud of. It's going to be a good year for us in 2010."

The group's marketing division, which helps banks and large companies identify prospects, was hit by the recession last year, but Callcredit fared better than rivals, said Mr McAndrew.

He added: "In the last two or three years, the whole market for this marketing side has been dead. We are very happy that we have only lost about 10 per cent of revenue last year because a lot of our competitors have lost 40-50 per cent."

The fall was offset by growth of 20 per cent in the group's credit division as Callcredit benefited from banks spending time and money on managing risk.

The division continuously monitors 15 million bank customers and informs its clients as soon as there is a change in an individual's circumstances.

The group has 650 employees, including 50 added in the last year. Looking ahead, Mr McAndrew said Callcredit aspires to double digit growth, when "competitors are talking about the market staying flat or one per cent growth".

Mr McAndrew led a management buyout of the business in December, as revealed in the Yorkshire Post. Vitruvian Partners, a London-based private equity house, backed the deal, which included 30m of bank debt.

Mr McAndrew said: "Skipton Building Society did a review in May 2009 and came to the conclusion we were no longer core. They came to us and said they wanted to reap the benefits of moving Callcredit on. They raised 40m in profit and more in capital.

"It was a brave organisation to invest money in a credit reference agency when we have two large global businesses (Experian and Equifax] existing in a duopoly."

He added: "Skipton got what they wanted and we got new partners in Vitruvian. The reason we chose these guys was because they are only interested in growth businesses. They are not interested in commodity businesses; they are only interested in businesses that supply added value.

"There's no secret that what we want to do is grow organically, but we are also going to grow through mergers and acquisitions. Vitruvian says there is a significant wedge of money there; let's make sure we grow this business profitably.

"We will be looking to acquire businesses that fill in gaps in our core offerings – they could be software or information businesses."

Callcredit expects businesses to start spending and looking to grow again by the end of 2010 or the beginning of 2011. The group has seen banks invest "a significant amount" in the last quarter of 2009 and the first quarter of 2010 to gear up for new business.

Mr McAndrew said: "Banks see they will be lending again but have to be more cautious because the environment won't be as buoyant as it was five or ten years ago. That's where I'm seeing real investment, which bodes well for us."

He is predicting that Callcredit will double in size in the next five years.

"We take on the best young people - a lot of them from Leeds University. They work very hard and they have helped us build a great business. This is a Leeds-centric business which is winning market share rapidly from two global organisations."

CHIEF EXECUTIVE JOINED AS SALES DIRECTOR

John McAndrew joined Callcredit Information Group as sales director shortly after its launch in 2000.

The group, set up by Skipton Building Society, has grown to take a sizeable chunk of market share from rivals Experian and Equifax.

David Cutter, the chief executive of Skipton, described the group as "a major success story of which we are very proud".

At the time of its sale to Vitruvian Partners, he said:

"It has huge further potential and is now ready to enter

the next stage of its development as an independent business with ambitious aspirations."

David Nahama, a founding partner at Vitruvian, said in December: "Callcredit sits right in our sweet spot as an entrepreneurial organisation, deploying smart technology and with a strong, customer-centric management team and great strategic opportunities ahead of it."