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

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021