31st Jul 2014 11:58
LONDON (Alliance News) - Fairpoint Group PLC Thursday said trading in the first-half of the year was in line with management expectations, supported by the acquisition and integration of two debt management books in the period.
The consumer professional services company said the acquisition of two debt management books in the first-half ended June 30, boosted Debt Management Plans activity, which it said it expects to make further progress in the second-half of the year.
"The group has continued to perform in line with expectations and the integration of Simpson Millar is progressing well, providing the opportunity to accelerate the diversification of the group's income streams," said Chief Executive Officer Chris Moat in a statement.
During the period, the group acquired Simpson Millar LLP Solicitors, a consumer legal services business, which it said is making good progress, It said it will benefit from a full six month contribution from Simpson Millar in the second-half and the acquisition will be immediately earnings enhancing on an adjusted basis.
"Good progress is being made on detailed integration planning of this acquisition in areas including sales, marketing and support services and our outlook for this division is positive," the company said.
Fairpoint operates in three divisions - individual voluntary arrangements, debt management and claims management.
While debt management plans activity increased during the period, the group said challenging market conditions remained for fee levels in its individual voluntary arrangements division.
The group said its claims management division reported lower revenue in the period, as claims levels from existing individual voluntary arrangement clients reached maturity, and those from its growing number of debt management clients are further developed.
Earlier in the year, the group secured a new long term bank facility of GBP20 million.
The company said it will announces its first-half results on September 11.
Fairpoint shares were trading 0.5% higher Thursday early afternoon at 133.15 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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