Fairpoint Group boosted by law firm’s double-digit growth
LEEDS-BASED law firm Simpson Millar expects to continue to grow quickly after delivering a big increase in revenues in 2015.
The consumer law firm, which is part of the stock market-listed Fairpoint Group, said it had achieved “significant double digit increases in segmental revenues and profits” while also improving its margins.
The firm became part of Fairpoint in June 2014, in a deal worth an initial £9m , with a further £3m earned after a strong first year post-acquisition. There is a further £3m earn-out available based on its performance in the second year.
In August Colemans-CTTS became part of the £40m legal services division, which now provides about two-thirds of Fairpoint’s revenues.
The deal included Coleman’s legal processing centre which will help the group to deliver volume personal injury, conveyancing and travel law.
Fairpoint’s chief executive Chris Moat said: “Fairpoint has delivered double digit growth, driven by the strong progress in growing its legal services business.
“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.”
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.
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.”
