Fairpoint buys another legal firm

LANCASHIRE-based professional services specialist Fairpoint Group has completed  the acquisition a consumer legal services support business for £9m.

It has acquired the assets of Manchester-based Colemans-CTTS LLP, CT Support Services Limited and the entire ordinary share capital of Holiday TravelWatch Ltd – together known as Colemans.

Colemans is a consumer-focused legal services provider with expertise in volume personal injury, conveyancing and travel law and has more than 200 employees, including 47 fee earners based at offices in Stretford, Kingston and Acton.

It delivered unaudited revenue results of £19m to year end April 30.

Adlington-headquartered Fairpoint says the deal provides an opportunity for scale efficiencies to be realised and has been funded from the group’s existing financial resources.

Fairpoint chief executive Chris Moat said: “We continue to gather strong momentum in our agenda of reshaping the group towards a broader consumer professional services organisation, whilst maintaining a solid cash generative performance in debt solutions.

“The acquisition of Colemans provides a substantial stimulus to this objective and a platform for further progress.”

Meanwhile, in its half year trading update until June 30 Fairpoint reported trading for the first six monhs of 2015 had been materially ahead of the same period last year and is in line with the board’s expectations. 

Simpson Millar LLP, the group’s existing consumer legal services business, performed well compared to its prior year – when it was not part of the group – and is now the company’s largest single source of income.

Group net debt as at 30 June 2015 was £5.2m (31 December 2014: £7.6m), reflecting strong cash generation from operating activities.

Partner Jodi Birkett and Dan Wright at Deloitte’s Manchester office led the financial due diligence for the deal.

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