brightsparke15 Sep 2010 08:08
market leaders (10 times the size of CLEA) results out today...
Interim Results
TIDMFRP
RNS Number : 6933S
Fairpoint Group PLC
15 September 2010
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Fairpoint Group plc
Interim Results for the six months ended 30 June 2010
15 September 2010
Fairpoint Group plc ("Fairpoint" or "the Group") today announces its interim
results for the six months ended 30 June 2010.
Highlights
First half earnings show improvement on H1 FY09 in line with management
expectations, specifically:
* Adjusted Profit before tax* rose 9% to GBP2.6 million in H1 FY10 (H1 FY09:
GBP2.4 million);
* Net bank borrowings fell GBP0.3 million in H1 FY10 to GBP4.2 million (H1 FY09:
GBP6.5 million);
* Revenue of GBP13.9 million in H1 FY10 (H1 FY09: GBP13.8 million) with gross
profit increasing to GBP6.1 million (H1 FY09: GBP5.7 million); and
* Interim dividend of 1.5p (H1 FY09: 0.0p).
Strong progress has been made across all key business priorities, namely:
* Diversified revenue - our organic growth agenda has delivered 25% growth from
non-IVA sources to 15% of all revenues and 18% of gross profits (H1 FY09: 12%
revenue, 13% gross profit);
* Cost efficiencies - further improvements have been achieved in H1 FY10.
Direct costs and marketing have been reduced to 55% (H1 FY09: 58%).
Additionally, the significant increase in the number of debt management cases in
June 2010 has allowed us to achieve scale benefits in our debt management
business;
* Customer numbers - we have exceeded our target of doubling customer numbers
with 22,121 new solutions sold (H1 FY09: 7,217) and the ongoing book of cases
has grown 44% to 33,547 (H1 FY09: 23,287);
* Strong operational cashflow has supported a programme of debt management
portfolio acquisition with GBP1.2 million invested in acquisitions; and
* Acquisition of Moneyextra.com Limited in July 2010 is a further significant
step in increasing the diversity of our income streams and accelerating the
strategic move to a broader based financial solutions business for financially
stressed consumers.
Further progress is expected in the second half of the year from:
* Anticipation of continued growth from IVA volumes driven by creditor
preference for IVAs over debt management plans;
* Growth in our debt management business giving increased economies of scale,
primarily from continued opportunities to acquire back books as tough
competitive conditions lead smaller players to exit the market;
* Acceleration of growth in the range of products and services following the
acquisition of Moneyextra.com in July;
* Continued cash generation from the core operation;
* Breakage levels in line with expectations; but
* Debt solution market growth has slowed due to the combination of a benign
interest rate environment and falling unemployment levels and this will rest
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