I guess drop reflects uncertainty over stated intention to transition fully from debt market to legal services. But latter looks promising - and holding the (very decent) dividend shows confidence of this (which is a link they actually make in the RNS). I will continue to hold while income keeps coming.
Research analysts at Panmure Gordon started coverage on shares of Fairpoint Group Plc (LON:FRP) in a note issued to investors on Wednesday, AnalystRatingsNetwork.com reports. The brokerage set a “buy” rating and a GBX 200 ($2.85) price target on the stock. Panmure Gordon’s price objective points to a potential upside of 37.93% from the stock’s previous close. Shares of Fairpoint Group Plc (LON:FRP) opened at 140.8401 on Wednesday. Fairpoint Group Plc has a 1-year low of GBX 105.66 and a 1-year high of GBX 195.00. The company’s market capitalization is GBX 61.73 million. The company has a 50-day moving average price of GBX 145.14 and a 200 day moving average price of GBX 161.84.
Separately, Shore Capital reiterated a “house stock” rating on shares of Fairpoint Group Plc in a report on Tuesday.
LEEDS-BASED law firm Simpson Millar expects to continue to grow quickly after delivering a big increase in revenues in 2015.
The consumer law firm, which is part of the stock market-listed Fairpoint Group, said it had achieved "significant double digit increases in segmental revenues and profits" while also improving its margins.
The firm became part of Fairpoint in June 2014, in a deal worth an initial £9m , with a further £3m earned after a strong first year post-acquisition. There is a further £3m earn-out available based on its performance in the second year.
In August Colemans-CTTS became part of the £40m legal services division, which now provides about two-thirds of Fairpoint's revenues.
The deal included Coleman's legal processing centre which will help the group to deliver volume personal injury, conveyancing and travel law.
Fairpoint's chief executive Chris Moat said: "Fairpoint has delivered double digit growth, driven by the strong progress in growing its legal services business.
"Having established our legal services platform, the group is well placed to take advantage of the considerable opportunities within this market, both organically and by acquisition. We believe our platform provides us with a structural competitive advantage which suits forthcoming market changes.
"Overall, we are confident of our positioning and our growth prospects."
The AIM-listed professional services group says it sees further growth in the legal services market, despite the government's crackdown on whiplash claims, as announced unexpectedly in the Autumn Statement.
Responding specifically to the proposed changes relating to small claims limits and whiplash claims and subsequent clarification in the Government's position, Fairpoint said this area of work accounted for around 8% of 2015 revenues.
It added: "As noted previously, the group believes that its recently acquired legal processing centre positions the Group advantageously to manage such legal work at low cost."
towards developing the significant opportunities within the Legal Services business, whilst maintaining focus on cost control in DMP. - Claims: As expected, revenues in claims management have declined significantly compared to the prior year as the business transitions from maturing IVA PPI claims to newer lines of activity. Margins have also reduced to reflect this mix change. Group net debt as at 31 December 2015 was £13.6m (31 December 2014: £7.6m). This largely reflects the acquisition activity undertaken by the Group within its Legal Services business during the year and is comfortably within the Group's committed bank facilities of £25m. During the year the Group incurred exceptional acquisition transaction and restructuring costs, as well as additional professional services costs, totalling £1.4m. The former, as previously reported, were associated with the acquisition and integration of Colemans and the latter with the application for full regulatory permission with the new regulator of DMP activities in the UK, the FCA. Chris Moat, Chief Executive Officer, commented: 'Fairpoint has delivered double digit growth, driven by the strong progress in growing its legal services business, which now represents approximately two thirds of Group revenues. 'Having established our legal services platform, the Group is well placed to take advantage of the considerable opportunities within this market, both organically and by acquisition. We believe our platform provides us with a structural competitive advantage which suits forthcoming market changes. Overall, we are confident of our positioning and our growth prospects.'
Fairpoint Group plc Trading Update Notice of Final Results Fairpoint Group plc ('Fairpoint' or 'the Group'), one of the UK's leading providers of consumer professional services, today issues a trading update on the Group's performance for its financial year ended 31 December 2015, ahead of announcing its final results on Wednesday, 16 March 2016. Overall, the Group's adjusted* results are expected to show double digit growth against the previous year and are in line with market expectations. This is principally as a result of the continued development of the Group's consumer legal services business, with the second significant acquisition in this area completed during H2 2015. Segmental updates are as follows: - Legal Services: Simpson Millar LLP, the Group's consumer legal services business, has delivered significant double digit increases in segmental revenues and profits, whilst making good progress on margin improvement. Legal Services, which now represents approximately two thirds of Group revenues on a pro forma basis, has benefitted from the acquisition in August 2015 of the trade and assets of Colemans-CTTS LLP ('Colemans'), which brings a Legal Processing Centre to the Group for the delivery of volume personal injury, conveyancing and travel law. Following proposed changes announced by the Chancellor in his Autumn Statement, relating to small claims limits and whiplash claims and subsequent clarification in the Government response to an online petition**, the Group believes that the proposed changes: - are intended to be focused on whiplash claims relating to road traffic accidents; - are subject to consultation, with anticipated implementation from April 2017; and - are expected to follow previous precedent and apply to cases introduced post implementation and not retrospectively. This category of business, on a pro-forma basis, represented approximately 8% of the Group's revenues in 2015. As noted previously, the Group believes that its recently acquired Legal Processing Centre positions the Group advantageously to manage such legal work at low cost. - IVA: As expected, conditions in the Group's debt solutions market remain challenging, with the volume of new IVA solutions in England and Wales falling by 25.7% in the first three quarters of 2015, compared to the same period last year (source: The Insolvency Service). IVA revenues for 2015 have as a consequence reduced by approximately 15% compared to the previous year and the Group has continued to focus on delivering good margins, strong cash generation and avoiding uneconomic new business. - DMP: Revenues have declined by approximately 15% when compared to last year. This reflects the absence of acquisition activity in 2015 as per our previously outlined plans. Following recent clarification from the Financial Conduct Authority ('FCA') regarding debt management back book acquisitions, we do not intend to resume activity in this field, preferring to deploy capital towards
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.