Acquisitions take Fairpoint revenue to £22.9m

KEY acquisitions by Lancashire-based financial services company Fairpoint Group have boosted revenue to £22.9m in the six months to June 30.

Turnover increased 64% (H1 2014: £13.9m) and adjusted pre tax profits rose 21% to £4.1m (H1 2014: £3.4m).

In its half-year results, Adlington-headquartered Fairpoint said legal services now accounted for 62% of its group revenue following acquisitions of Simpson Millar and Fosters in June and July 2014 and of Colemans CTTS solicitors and Holiday TravelWatch, together known as Colemans, completed in August.

It’s strong financial base has been supported by an expanded £25m funding facility from AIB Group, agreed also last month.

The company said it was in a strong position for the second half of 2015 with contributions from the Colemans acquisition expected to flow in following the £8m plus £1m in shares deal.

It also said it was in a strong position to “develop the legal services platform organically through further acquisitions supported by an enlarged £25m financing facility”.

Meanwhile, group finance director John Gittins said net debt is down from £7.1m to £5.2m.

“We’ve generated a bit of cash from our operations during the period,” he said. “We are in a very cash generative business.”

Chief executive 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.

“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.”