Fairpoint sells medico-legal business to help cashflow
AIM-listed consumer professional services company Fairpoint Group has sold its medico-legal business PIX for £1.2m.
Established in 2012, PIX has been providing medical records, reporting services and disbursement funding support to certain departments of the group’s legal services division.
The company, which had an operating profit of around £100,000 last year, has been sold to Premex Services, a provider of medico-legal services to the legal services industry.
Fairpoint has also entered into a three year strategic partnership with Premex for on-going medical records and reporting services, which it said is expected to deliver operational efficiencies and improvements to working capital.
The proceeds of £1.2m will be used to support the working capital requirements of the group.
Yesterday, Fairpoint announced that its 2016 profits had halved to less than £5m and it suspended dividends until further notice.
It reported pre-tax profits of £4.9m (2015: £10.5m) on revenue of £52.9m (2015: £54.1m) for the year to the end of December 2016.
The Lancashire company said management had taken action to improve cash flow, working capital and reduce costs and that the restructuring programme is “on track”.
