9th Jun 2014 08:55
LONDON (Alliance News) - Fairpoint Group PLC said Monday overall group trading is "modestly" ahead of the comparable period last year as its continues to focus on its diversification programme.
During its historically quieter first four months of the year, the company said it has made good progress with its diversification agenda with the full integration of two Debt Management books acquired at the start of 2014 now complete.
In a statement released ahead of its annual general meeting Monday the group said overall trading is currently marginally ahead of the first four months of 2013, stating that the acquisitions have resulted in a "very significant increase in DMP [Debt Management Plans] activity compared to the previous period."
As expected, market conditions in Fairpoint's core debt solutions market remain challenging, said the company, as it continues to avoid exposure to activity it considers uneconomic. "Our claims management activities are continuing to develop in new areas through our debt management clients, although overall activity in the early part of the year has been relatively subdued, as claims activity relating to existing IVA clients reaches maturity," the AIM-listed consumer financial services business said.
Fairpoint also said that the acquisition of consumer legal services business, Simpson Millar, is expected to complete in the near term. The acquisition is being financed by a new, enlarged GBP20 million banking facility with AIB Group UK PLC, as announced May 21. "This acquisition represents an important step in accelerating the diversification of our income streams into legal services, in line with our stated strategy," said the company Monday.
Shares in Fairpoint were trading 8.87% lower at 132.6 pence per share Monday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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