Debts firm Fairpoint sees profits increase

Confident: Chris Moat of Fairpoint
Confident: Chris Moat of Fairpoint
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Lancashire-based debt management company Fairpoint has reported a leap in profits of four per cent.

The Adlington-based firm says half year results are in line with expectations and diversification of income streams continues.

Fairpoint reported revenue of £13.9m (2013: £14.0m), and profit before tax of £1.0m (2013: £2.5m) after deducting exceptional acquisition and refinancing

In June 2014, Fairpoint aquired Simpson Millar LLP Solicitors, a consumer legal services business, for an initial consideration of £5.7m cash and £2.0m shares

Since the period end, two further acquisitions have been completed, comprising Fosters and Partners, a family law specialist, for a deferred consideration of £0.4m, and Debt Line Topco Limited, for cash consideration of £3.0m, adding a further 9,000 debt management plans

Bosses says the outlook is confident as the business is reshaped.

Acquisitions completed will benefit the second half of the year, and further acquisition opportunities within legal services and debt management are being targeted

Chris Moat, Chief Executive Officer, said: “Fairpoint has continued to grow earnings in line with our stated strategy of diversification, with over 50 per cent of revenues now being generated from non-IVA activities.

“This trajectory is expected to accelerate in the second half, driven by recent acquisitions combined with the market conditions in the IVA segment.

“An important step in our planned strategy of moving into legal services has been taken with the acquisition of Simpson Millar and integration activities are progressing well.

“The Board is confident of making strong progress in the current year as we continue to reshape the business.”