Fairpoint Group today advised shareholders it expects adjusted profits for the current calendar year to exceed market predictions as a result of considerable revenue growth.
The board said its claims management services for its IVA portfolio, which started in the second half of 2011 have continued to develop positively in the year to date, helping to drive revenue growth and enhanced profits.
In a statement published on the London Stock Exchange, Chris Moat, chief executive officer, said the board expects claims management activities to continue to contribute positively throughout the remainder of 2012 and into 2013.
He added: “Market conditions in the Group’s core activities remain subdued. Cash generation within the business has continued to be strong, resulting in a reduction in Group net borrowings to £1.6m at 19 June 2012, compared to £6.4m at 31 December 2011.”
Moat said these figures excluded any cash arising from the application of the VAT reclaim recently received in IVA cases relating to the Paymex judgment.
Back in March, Fairpoint Group confirmed a drop in adjusted pre-tax profits of £2.9m from the £6.9m declared in the full year results of 2010 to £4m for 2011.
Revenues reduced from £29.4m in 2010 to £25.9m for 2011, which was attributed to a £6.1m decline in IVA revenues.