A Lancashire-based debt advice group has recorded a “strong second half performance” in 2013, it said today.
In a trading statement, the Fairpoint Group, based at Adlington, near Chorley, said it had bolstered its debt management plan business with a string of acquisitions.
The firm said it bought a book of 500 plans late last year and has acquired two more in the past few weeks for £4m.
The deals have added 9,000 plans, taking the firm’s total to 24,000. It also added a “small book” of PPI claims in late December.
Fairpoint said it expected adjusted profits for the year to December to be in line with market expectations.
The group incurred one-off costs of £500,000 related to a restructuring designed to reduce costs, and £100,000 from aborted acquisitions.
Chief executive Chris Moat said: “The group has delivered its traditional strong second half performance, despite continued subdued conditions within the IVA market.
“At the same time, we have continued our diversification strategy with a number of further acquisitions both before and after the 2013 year end,” added Mr Moat.
The group said in the statement that net cash as at 31 December 2013, net of asset related finance, was £2.8 million.
It pointed out that since the year end the group had paid £4m in initial consideration for two DMP back book acquisitions, funded from both its own cash resources and its long term bank facilities of £13.0m.
Fairpoint Group plc is a financial services business specialising in the provision of debt advice, debt solutions, and a range of financial products and services to the over-indebted sector.