Fairpoint Group’s profits remain flat despite double-digit revenue growth

Consumer professional services provider Fairpoint Group plc achieved double-digit revenue growth during H1 2016 while profits remained flat.

Over the six months ending 30 June 2016, the Lancashire company’s total revenues rose year on year by 24% to £28.3m.

Despite the increase in overall takings, Fairpoint’s adjusted pre-tax profit failed to demonstrate the same level of growth, sitting at £4m in comparison to £4.1m the year previous.

The group’s revenues from legal services almost doubled, rising from £11.3m during the first half of 2015 to £21.5m this year, reflecting the organic growth achieved in Fairpoint’s Simpson Millar business and its acquisition of Colemans last August.

Conversely, the company’s revenues from its debt solutions offer negatively impacted its figures, falling from £11.6m to £6.9m. Fairpoint has attributed the dip to adverse market conditions.

The group’s CEO, Chris Moat, 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.”

He continued: “The scale and fragmented nature of this marketplace presents a significant opportunity for Fairpoint to deploy its core skill of applying process to a professional service, and thereby create a structural competitive advantage relative to existing market incumbents.”

Last year, Fairpoint’s legal services offer expanded to become its largest business segment for the first time.