Fairpoint's fist half revenue grows on legal services

The company’s services are divided into three divisions: legal services, debt management and claims solutions.

The group’s total revenue increased by 24% to £28.3m in the first half. Adjusted profit before tax was broadly flat at £4m compared to £4.1m in the previous period.

Legal services revenues rose to £21.5m in the first half compared to £11.3m in the previous period reflecting organic growth in Simpson Millar and the acquisition of Colemans in August 2015 despite the housing market slowdown. It’s adjusted profit rose to £3.1m compared to £1.4m in 2015. This part of the business now accounts for majority of the group’s revenue and operating profits.

The debt solutions division on the other reported a fall in revenue to £6.9m from £11.6m in the previous period. Sales volumes were impacted by a slowdown in housing market transactions and the impact of Brexit has led to a fall in mortgage approvals to a 15 month low.

Chris Moat, Chief Executive Officer, said: "Fairpoint has delivered double digit revenue growth compared to last year, despite challenging market conditions. Looking forward the board will continue to transition the business towards legal services."

The firm also decided to exit the debt management plan (DMP) market during the period due to regulatory changes announced on 20 July 2016 making the business model unsustainable.

The group’s net debt was £15.6m at 30 June 2026, £11m of which was investment in Legal Services acquisitions during 2015.

Adjusted basic earnings per share fell to 7.03p from 7.38p in the previous period. Interim dividend level maintained at 2.45p reflecting the groups transition into a legal services business. The share price fell 7.835 to 95.40p at the close.