11th Sep 2014 08:04
LONDON (Alliance News) - Fairpoint Group PLC Thursday reported a drop in first-half pretax profit on the back of mixed revenue performance across its business and costs it incurred due to its acquisition of a consumer legal services business and its refinancing with AIB.
In a statement, Fairpoint, whose main business lines constitute individual voluntary arrangements, debt management plans, claims management, and legal services, said it made a GBP1.0 million pretax profit in the six months ended June 30, compared with a GBP2.5 million pretax profit in the corresponding period last year.
Fairpoint reported a slight fall in revenue to GBP13.9 million from GBP14.0 million, with growth in debt management plans and first time revenue from its newly formed legal services segment offset by reductions in its other two segments.
The company incurred GBP700,000 of costs due to its acquisition of Simpson Millar LLP Solicitors. It also incurred GBP500,000 of legal, professional and other charges due to its five year GBP20.0 million banking facility refinancing with AIB, which supported the acquisition.
The group has been diversifying its earnings, with more than half its revenue now generated from non-individual voluntary arrangement activities. It added that it is targeting further acquisition opportunities within legal services and debt management.
Chief Executive Chris Moat said he expects that to accelerate in the second half of the financial year.
"An important step in our planned strategy of moving into legal services has been taken with the acquisition of Simpson Millar and integration activities are progressing well," Moat said in a statement.
"The board is confident of making strong progress in the current year as we continue to reshape the business through our diversification strategy," the CEO added.
Fairpoint increased its interim dividend to 2.30 pence per share from 2.15p.
Fairpoint shares were Thursday quoted down 4.3% at 131.12p.
By Samuel Agini; [email protected]; @samuelagini
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