Fairpoint Group – the debt management and IVA group – has confirmed adjusted pre-tax profits of £7.6 million for the full year ending December 2012, up from the £4 million declared for 2011.
The rise was attributed partly to a £2.7 million increase in claims management revenues and a 15% rise in adjusted overall revenue from £25.9 million in 2011 to £29.9 million in 2012.
The company also acquired to books of debt management plans – totalling more than 2,000 in number – for a cash consideration of £0.9 million.
Chris Moat, chief executive officer of Fairpoint was, unsurprisingly, pleased today’s results, saying they represented a marked improvement in financial, operating performance and cash flow.
He added: “Fairpoint has continued its strategy of diversifying its income streams and has grown its revenues and profitability in what continue to be subdued market conditions.
“We expect to make continued progress in 2013 and beyond, from a strengthened financial position through further development of our claims management services offering tight cost control and back book acquisition activity. The board’s expectations for the current year, therefore, remain unchanged.”
The company reiterated that its business plan to develop its income streams will continue in three key areas.
1. To focus its cost agenda in the IVA segment during a period of subdued market demand.
2. To continue to grow its debt management plan activities both organically and through acquisition opportunities.
3. To continue to expand its newly established claims management services through new products.