Fairpoint Group unveils hike in annual profits

UK financial advisor Fairpoint Group recorded an 87 per cent rise in annual pre-tax profits Thursday as diversified activities pushed revenues higher.

UK financial advisor Fairpoint Group recorded an 87 per cent rise in annual pre-tax profits Thursday as diversified activities pushed revenues higher.

The provider of solutions to financially stressed consumers said adjusted profit before tax for 2012 came to £7.6m, compared to £4.0m reported a year earlier.

Revenues grew 15% to 329.9m while net cash generated from operating activities climbed 173.9% to £12.6bn.

Diversified activities, including debt management plans and claims management services, rose to 36% of total revenue.

"I am pleased to report a strong set of results for 2012, with a marked improvement in financial, operating and cash flow performance," said Chief Executive Officer, Chris Moat.

"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 recommended a total dividend of 5.5p, up 22% from 4.5p in 2011.

Shares climbed 4.69% to 106p at 11:47 Thursday.

RD

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