Legal services the future for Fairpoint
FAIRPOINT, the AIM-listed professional services group, says it sees further growth in the legal services market despite the government’s crackdown on whiplash claims, as announced unexpectedly in the Autumn Statement.
The Chorley-headquartered company whose activities include IVAs, debt management plans, PPI claims and house conveyancing, has acquired two consumer legal firms, Leeds-based Simpson Millar and more recently Manchester-based Colemans-CTTS, over the last three years.
In a trading update on its performance for the year to December 31 2015, ahead of its results to be published on March 16, Fairpoint said the numbers would show “double digit growrth” on the 2014 figures and would meet market expectations.
The growth has been driven by legal services, which has seen strong revenue and profit growth, so much so that this now accounts for two-thirds of all revenues.
The acquisition last August of Colemans, which included a Manchester-based legal processing centre, has helped
with the efficient delivery and process of volume personal injury, conveyancing and travel law.
Responding specifically to the proposed changes relating to small claims limits and whiplash claims and subsequent clarification in the Government’s position, Fairpoint said this area of work accounted for around 8% of 2015 revenues.
It added: “As noted previously, the group believes that its recently acquired legal processing centre positions the Group advantageously to manage such legal work at low cost.
Chief executive Chris Moat said: “”Fairpoint has delivered double digit growth, driven by the strong progress in growing its legal services business, which now represents approximately two thirds of group revenues.
“Having established our legal services platform, the group is well placed to take advantage of the considerable opportunities within this market, both organically and by acquisition. We believe our platform provides us with a structural competitive advantage which suits forthcoming market changes. Overall, we are confident of our positioning and our growth prospects.”
Fairpoint said its IVA, PPI claims and debt mamanagement activities had all see decline in income.
Group net debt at year end was £13.6m (2014: £7.6m), “comfortably within” the group’s committed bank facilities of £25m.
