Fairpoint predicts profit growth

DEBT advisory firm Fairpoint is predicting that profits for 2012 are likely to be higher than expected due to the successful growth of its claims management arm.

It also said that it had benefitted from improved cash generation – even before the likely return of VAT levied by HMRC on IVAs as a result of the Paymex case.

The firm said that the claims management services offered to its portfolio of IVA clients “have continued to develop positively during the current year, resulting in strong growth in revenues and profits from those activities”.

“The board expects claims management activities to continue to contribute positively throughout the remainder of 2012 and into 2013,” it said, although adding that market conditions in its core debt advisory business remains subdued.

The increased cash generated means that group borrowings have fallen to £1.6m, compared with £6.4m at the start of the year.