Fairpoint Group sees profits rise and expands legal services

Professional services firm Fairpoint Group plc has seen its profit and revenue grow in the six months to June 30, with the company’s Legal Services arm expanding to become its largest business segment.

During the first six months of 2015, Lancashire-headquartered Fairpoint grew its pre-tax profits by 27%, to £1.3m from £1m at the same point in 2014. At the same time, the company’s revenue rose to £22.9m from £13.9m in the first half of last year, an increase of 64%.

The period also saw Fairpoint’s Legal Services segment grow from accounting for 8% of its total revenue in 2014 to 49% at the end of June.

In the coming months, Fairpoint is anticipating contribution from consumer legal services company Colemans CTTS solicitors and Holiday TravelWatch Limited, which it acquired last month for £8m in cash and £1m in shares.

CEO Chris Moat said: “Fairpoint has delivered another strong set of financial results, both in terms of profitability and cash generation, whilst continuing to execute its stated strategy of becoming a broadly based professional services group.

“The addition, post period end, of Colemans in August 2015 now means that on a pro forma basis, Legal Services is expected to represent almost two-thirds of the group’s revenues.”

He added: “This is expected to provide an important growth stimulus for the remainder of 2015 and beyond and the group is well placed to develop upon the considerable opportunities within the legal services marketplace, both organically and by acquisition.”

Meanwhile, the Adlington-based company’s cash generation rose significantly in the six-month period. The firm reported net cash generation of £4.9m from operating activities, compared to £1m in 2014, while at the same time lowering its net debt from £7.1m last year to £5.2m in 2015.

Fairpoint Group also announced today (Thursday, September 3) that Panmure Gordon has been appointed as its joint broker, while Shore Capital will remain a nominated adviser and broker.

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