We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Debt Free Dir. | LSE:DFD | London | Ordinary Share | GB0032360280 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 175.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMFRP
RNS Number : 9177X
Fairpoint Group PLC
03 September 2015
3 September 2015
Fairpoint Group plc
Half year results for the six months ended 30 June 2015
Fairpoint Group plc ("Fairpoint" or "the Group"), one of the UK's leading providers of consumer professional services, today announces its half year results for the six months ended 30 June 2015.
Highlights
Half year results are significantly ahead of the same period last year, with a strong contribution from consumer legal services, which delivered the earnings enhancements anticipated at the time of the acquisition of Simpson Millar and Fosters in June and July 2014.
Hot Features
Premium
-- Reported and adjusted revenues and profits have increased significantly compared to the first half of 2014
o Revenue increased by 64% to GBP22.9m (2014: GBP13.9m)
o Adjusted profit before tax* increased by 21% to GBP4.1m (2014: GBP3.4m)
o Adjusted basic earnings per share** increased by 19% to 7.38p (2014: 6.20p)
o Reported profit before tax increased by 27% to GBP1.3m (2014: GBP1.0m) after deducting exceptional costs of GBPnil (2014: GBP1.2m), amortisation of acquired intangible assets of GBP2.3m (2014: GBP1.1m) and unwinding of discount on contingent consideration of GBP0.4m (2014: GBPnil)
o Reported basic earnings per share increased by 25% to 2.33p (2014: 1.87p)
-- Fairpoint is now reshaped into a broadly based professional services group
o Legal Services is now the largest single business segment representing 49% of total revenue in the period (2014: 8%)
o On a pro forma basis, Legal Services now represents 62% of Group revenues
-- Strong balance sheet, cash generation and new enlarged long term bank facilities provide a platform for further
growth
o Net cash generated from operating activities of GBP4.9m (2014: GBP1.0m)
o Net debt*** of GBP5.2m at 30 June 2015 (30 June 2014: GBP7.1m)
o Expanded bank facilities with AIB Group (UK) plc ("AIB"), agreed in August 2015, taking the total facility to GBP25.0m
-- Increased dividend reflecting strong profit and cash performance and confidence in the future
o Interim dividend increased by 7% to 2.45p (2014: 2.30p)
-- Well placed for strong performance in second half of 2015
o Contribution expected from acquisition in August 2015 of Colemans CTTS solicitors and Holiday TravelWatch Limited ("Colemans"), a consumer legal services business, for an initial cash consideration of GBP8.0m and GBP1.0m in shares
o Strong position to continue to develop the Legal Services platform organically and through further acquisition supported by an enlarged GBP25.0m financing facility
o Strong cost control across debt solutions activities is expected to continue to deliver good margins and cash flows
* Profit before tax of GBP1.28m (2014: GBP1.01m) plus amortisation of acquired intangible assets of GBP2.35m (2014: GBP1.12m) plus unwinding of discount on contingent consideration of GBP0.43m (2014: GBPnil) plus exceptional items of GBPnil (2014: GBP1.23m)
** Adjusted for the net of tax effect of amortisation of acquired intangible assets, unwinding of discount on contingent consideration and exceptional items
*** Net debt is bank borrowings and finance lease liabilities less cash
Chris Moat, Chief Executive Officer, said:
"Fairpoint has delivered another strong set of financial results, both in terms of profitability and cash generation, whilst continuing to execute its stated strategy of becoming a broadly based professional services group.
The addition, post period end, of Colemans in August 2015 now means that on a pro forma basis, legal services is expected to represent almost two thirds of the Group's revenues. This is expected to provide an important growth stimulus for the remainder of 2015 and beyond and the Group is well placed to develop upon the considerable opportunities within the legal services marketplace, both organically and by acquisition."
Enquiries:
Fairpoint Group Plc
Chris Moat, Chief Executive Officer 0845 296 0100
John Gittins, Group Finance Director
Shore Capital (Nomad and Broker)
Pascal Keane 020 7408 4090
Edward Mansfield
MHP Communications
Reg Hoare 020 3128 8100
Katie Hunt fairpoint@mhpc.com
There will be an analyst presentation to discuss the results at 9.15 for 9.30am on 3 September 2015 at the offices of MHP Communications, 6 Agar Street, London, WC2 4HN
Notes to editors:
Fairpoint Group plc is an AIM listed consumer professional services business specialising in the provision of consumer-focused legal services, personal debt solutions and claims management. The Group is structured into the following primary business lines:
1. Legal Services 2. Debt Management Plans (DMPs) 3. Claims Management 4. Individual Voluntary Arrangements (IVAs)
www.fairpoint.co.uk
Chairman's statement
I am pleased to report a strong set of results for the first half of 2015, which reflect the anticipated earnings enhancements from the acquisitions in consumer legal services the Group made in June and July 2014. Significant progress has been made in developing the Group's legal services offering, with Simpson Millar and Fosters having been integrated well and with the acquisition of Colemans in August 2015. At the same time, we have continued our disciplined approach to margin and cash management in our traditional debt solutions markets, taking into account the difficult market conditions.
Strategy
Our core strategic themes will focus upon:
-- Developing our customer franchise by providing consumers with a growing number of solutions which will improve their circumstances;
-- Consolidation in our chosen markets, with a particular focus on the legal services market place whilst we evaluate regulatory developments in the debt management marketplace;
-- Clear differentiation of our solutions from those offered by our competitors; and -- Focus on our cost agenda to maintain margin in the IVA and DMP segments.
Dividend
Our dividend policy takes into account the underlying growth in adjusted earnings, whilst acknowledging the requirement for continued organic and acquisition led investment.
In light of the results for the first half and taking into account the requirements of the Group, the Board has recommended an increase in the interim dividend of 7% to 2.45p (2014: 2.30p).
The interim dividend will be paid on 23 October 2015 to shareholders on the register on 2 October 2015, with an ex-dividend date of 1 October 2015.
People
We are reliant on the experience and commitment of our people and I would like to thank the management and staff for all of their hard work and dedication during the first half of 2015.
Outlook
We expect to make further progress in the second half of 2015, benefitting from the normal seasonality of the business, continued cost control and a first time contribution from the acquisition of Colemans.
Beyond this, we anticipate targeting further value-enhancing acquisition opportunities during 2015, to allow us to consolidate our market position.
David Harrel
Chairman
Chief Executive Officer's review
Results
Group revenue increased by 64% to GBP22.9m (2014: GBP13.9m), with legal services activities accounting for 49% (2014: 8%). This mix change largely reflects the acquisition of Simpson Millar, the Group's legal services platform, at the end of the first half of last year. This trend of increasing contribution from legal services activities will gather pace during the rest of 2015, given the acquisition in August of Colemans.
Adjusted profit before tax* increased by 21% to GBP4.1m (2014: GBP3.4m). Reported profit before tax increased by 27% to GBP1.3m (2014: GBP1.0m), after deducting exceptional acquisition and refinancing costs of GBPnil (2014: GBP1.2m), amortisation of acquired intangible assets of GBP2.3m (2014: GBP1.1m) and the unwinding of the discount on contingent consideration of GBP0.4m (2014: GBPnil).
Adjusted basic earnings per share** increased by 19% to 7.38p (2014: 6.20p). Basic earnings per share was 2.33p (2014: 1.87p) and fully diluted earnings per share was 2.31p (2014: 1.85p).
Net debt*** at 30 June 2015 was GBP5.2m (30 June 2014: GBP7.1m).
Operational review
Our Market places
The Group operates within the following two core market places -
Legal Services
The legal services market is highly fragmented and has recently been subjected to significant regulatory change, which is intended to improve consumer choice and value. These changes are encouraging industry consolidation and present a unique opportunity to create more competitive consumer offerings. The acquisition of Simpson Millar in June 2014, Fosters in July 2014 and the subsequent acquisition of Colemans in August 2015 provide a significant platform from which the Group can deploy its core skill of applying process to professional services. On a pro-forma basis, Legal Services are now expected to generate the majority of the Group's income.
Debt Solutions
(MORE TO FOLLOW) Dow Jones Newswires
September 03, 2015 02:00 ET (06:00 GMT)
Market conditions for the Group's debt solutions remain challenging and we continue to take a disciplined approach to marketing expenditure, ensuring that uneconomic activity is minimised. The volume of new IVA solutions in England and Wales decreased by over 30% to 19,426 in the first half of 2015 (2014: 27,791), (source: The Insolvency Service), a reflection of the economic stability in the wider economy. These market conditions, in our view, are likely to continue until bank base rate increases adversely impact the financial circumstances of home owners who typically have higher incomes.
* Profit before tax of GBP1.28m (2014: GBP1.01m) plus amortisation of acquired intangible assets of GBP2.35m (2014: GBP1.12m) plus unwinding of discount on contingent consideration of GBP0.43m (2014: GBPnil) plus exceptional items of GBPnil (2014: GBP1.23m)
** Adjusted for the net of tax effect of amortisation of acquired intangible assets, unwinding of discount on contingent consideration and exceptional items
*** Net debt is bank borrowings and finance lease liabilities less cash
In the debt management sector, a rigorous regulatory agenda has been driven by the Financial Conduct Authority (FCA) since it assumed responsibility for the regulation of this sector from April 2014, including the release, in June 2015, of its thematic review of the debt management sector. The Group has opted to suspend acquisition activity in this sector for the foreseeable future, whilst pricing and valuations evolve under the new regulatory regime. As with all firms operating within this sector, since the change in regulatory regime, the Group has traded under an interim regulatory permission. Following this, the Group has submitted its application for full regulatory permission and this is expected to be processed during the second half of 2015.
Legal Services
Revenues in the legal services segment rose to GBP11.3m (2014 (2 weeks): GBP1.2m) reflecting the acquisition of Simpson Millar in June 2014. The segmental adjusted pre-tax profit was GBP1.4m (2014 (2 weeks): GBP0.1m), with a small improvement in adjusted profit margin to 13% (2014 (2 weeks): 10%). Compared to the full six month period of the prior year (when it was not part of the Group), legal services performed well with single digit organic growth in revenues and profits. Simpson Millar provides consumer-focused legal services with its main lines including: family, public law, and complex personal injury law.
Our mission within legal services is to make law more accessible to consumers. During the last 12 months we have taken a series of actions aimed towards bringing this mission to life including:
- placing prime responsibility for the generation of new customer enquiries into our Group marketing and helpline function
- defining a pricing tariff for over 70 legal products, which will enable us to communicate a price point for a fixed schedule of services at the outset
- developing our infrastructure to operate more efficiently
- more recently adding a class leading volume personal injury, conveyancing and travel law business to enhance our product set.
In August 2015, the Group acquired Colemans, a provider of consumer-focused legal services with leading expertise in volume personal injury, volume conveyancing and travel law. On a pro forma basis following the acquisition of Colemans, legal services are now expected to represent at least 62% of the Group's revenues.
The initial consideration was GBP8.0m in cash and a further GBP1.0m through the issue of 755,516 ordinary shares. Further contingent consideration of up to GBP7.0m may be payable based on the financial performance of Colemans for the 11 month period ending June 2016 and the 12 month period ending June 2017. Colemans has over 200 employees (of which 67 are direct fee earners, with the rest facilitating the efficiency of those fee earners) based in three offices in Manchester, Kingston and Acton. Colemans brings a pronounced competency in volume personal injury law, which is complementary to the range of services already offered in Simpson Millar.
As previously announced, the acquisition of Colemans is expected to incur GBP1.0m of legal, professional and integration costs in the second half of 2015.
IVA services
Revenues from the Group's IVA activities were GBP5.6m (2014: GBP6.7m). Revenues reduced largely as a result of fewer new cases, due to the 30% market reduction in IVAs noted above.
IVA services segmental adjusted pre-tax profit was GBP1.0m (2014: GBP1.3m). In light of the market conditions outlined above, we have focused on profit margin management through cost control and as a result, adjusted profit margin fell only slightly to 17% (2014: 19%), despite reduced revenues.
The total number of fee paying IVAs under management at 30 June 2015 was 16,889 (30 June 2014: 18,717). The number of new IVAs written in the first half of 2015 was 795 (2014: 1,464) and the average gross fee per new IVA was GBP3,036 (2014: GBP3,458).
DMP services
Revenues in the DMP segment were GBP3.9m (2014: GBP3.9m) and the segmental adjusted pre-tax profit was GBP1.5m (2014: GBP1.6m).
Our focus in the DMP segment has been on customer service to our existing clients and engaging with the requirements of the new regulatory regime. In line with the FCA thematic review, we have implemented certain changes to our procedures and we expect our application for full regulatory permission to be processed during 2015. In light of the regulatory environment, no acquisitions of DMP back books were considered during the period.
The total number of DMPs under management at 30 June 2015 was 20,730 (2014: 21,422). Adjusted profit margin was broadly flat at 39% (2014: 40%).
Claims management
Revenues from our claims management activities were GBP2.1m (2014: GBP2.1m) and the segmental adjusted pre-tax profit decreased to GBP0.4m (2014: GBP0.6m) as the business invested in developing new products and services.
Claims levels, largely relating to payment protection insurance (PPI) reclaim activity from existing IVA clients have reached maturity, whilst those from our debt management clients, conducted through our "Writefully Yours" brand, are building well.
Outlook
Following the acquisition of Colemans, we have now established a significant and diverse legal services platform and this is expected to be accretive to earnings in the second half of 2015. In addition, we expect to continue to pursue acquisition opportunities, with particular focus on the legal services market, as well as benefitting from further integration activity in this segment, as we pursue our objective of making law more accessible to consumers.
We anticipate that the market conditions in the IVA segment will remain challenging and we will therefore continue to focus on margin management and cash generation. We expect the development of other claims products to mitigate in part the effects of the maturing IVA claims activity. In DMP, we are focussed on existing business whilst our application for full regulatory permission is processed. Our debt solutions activities are expected to benefit from their usual seasonally stronger second half, in part due to lower anticipated marketing costs given the subdued markets.
As a result of the above factors, the Board is confident of delivering good progress in line with market expectations for the year as a whole, whilst further establishing the building blocks for continuing growth.
Chris Moat
Chief Executive Officer
Finance Director's review
Financial highlights
Group revenue increased by 64% to GBP22.9m (2014: GBP13.9m). This increase was largely as a result of the contribution from Simpson Millar which was acquired in June 2014. Revenues within the DMP and claims management segments were consistent with the first half of 2014, but declined in the IVA segment.
The Group achieved a gross margin of 50% (2014: 50%) and adjusted profit before tax* increased by 21% to GBP4.1m (2014: GBP3.4m). The increased revenue from legal services and a controlled cost base have led to the improved results.
The Group incurred no exceptional costs during the first half of 2015. During the first half of 2014, the Group incurred exceptional costs of GBP1.2m represented by GBP0.7m of costs in relation to the acquisition of Simpson Millar and GBP0.5m of costs associated with the refinance of the Group with AIB.
Reported profit before tax was GBP1.3m (2014: GBP1.0m).
The Group's tax charge was GBP0.3m (2014: GBP0.2m). The tax charge on adjusted profits was GBP0.8m (2014: GBP0.7m). This represents an effective rate of 20.3% (2014: 21.5%), the reduction largely resulting from the change in corporation tax rates during the year.
The total comprehensive income for the six months ended 30 June 2015 was GBP1.0m (2014: GBP0.8m).
Earnings per share (EPS)
Adjusted basic EPS** was 7.38p (2014: 6.20p). Basic EPS was 2.33p (2014: 1.87p). Diluted EPS was 2.31p (2014: 1.85p).
Cash flows
Cash generated from operations was GBP5.5m (2014: GBP1.8m) representing 128% of adjusted profit before finance costs. The cash flows for the six months ended 30 June 2014 included cash outflows associated with exceptional costs of GBP0.7m and GBP1.3m of one-off working capital outflows associated with Simpson Millar. There were no cash outflows associated with exceptional costs for the six months ended 30 June 2015. In legal services, work in progress days at 30 June 2015 were 101 (30 June 2014: 96) and the acquisition of Colemans is not expected to significantly extend this working capital investment in work in progress, given the high volume and shorter term nature of its case portfolio.
Interest paid was GBP0.2m (2014: GBP0.1m).
During the first half of 2015 the Group made tax payments of GBP0.4m (2014: GBP0.6m).
(MORE TO FOLLOW) Dow Jones Newswires
September 03, 2015 02:00 ET (06:00 GMT)
Investing cash outflows were GBP0.7m (2014: GBP9.3m), with 2014 reflecting in particular the cash element of the Simpson Millar acquisition of GBP5.0m (net of cash balances acquired) and the acquisition of two DMP businesses (one via a corporate acquisition, the other via an asset acquisition).
Financing cash outflows were GBP4.0m (2014: cash inflows GBP10.1m), including dividend cash outflows which increased to GBP1.8m (2014: GBP1.6m).
* Profit before tax of GBP1.28m (2014: GBP1.01m) plus amortisation of acquired intangible assets of GBP2.35m (2014: GBP1.12m) plus unwinding of discount on contingent consideration of GBP0.43m (2014: GBPnil) plus exceptional items of GBPnil (2014: GBP1.23m)
** Adjusted for the net of tax effect of amortisation of acquired intangible assets, unwinding of discount on contingent consideration and exceptional items
*** Net debt is bank borrowings and finance lease liabilities less cash
Financing
The Group's net debt*** position as at 30 June 2015 was GBP5.2m (30 June 2014: GBP7.1m).
In August 2015 the Group agreed a GBP5.0m extension to its previous GBP20.0m banking facility with AIB, taking the total facility to GBP25.0m. The new committed facility comprises a GBP17.0m revolving credit facility and an GBP8.0m term loan, providing the Group with significant financing headroom. This new facility extends to May 2019.
The new facility supported the acquisition of Colemans and provides long term financing to underpin the Group's growth and acquisition strategy.
John Gittins
Group Finance Director
*** Net debt is bank borrowings and finance lease liabilities less cash.
Consolidated statement of comprehensive income - Period from 1 January 2015 to 30 June 2015
Period from 1 January Period from 1 January Year ended 31 December
to 30 June 2015 to 30 June 2014 2014
Unaudited Unaudited Audited
Amortisation Amortisation Amortisation
of acquired of acquired of acquired
intangible intangible intangible
assets, assets, assets,
unwinding unwinding unwinding
Adjusted of discount Total Adjusted of discount Total Adjusted of discount Total
* on contingent * on contingent * on contingent
consideration consideration consideration
and and and
exceptional exceptional exceptional
items items items
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- ---------- -------------- --------- ---------- -------------- -------- ---------- -------------- ---------
Revenue 22,882 - 22,882 13,942 - 13,942 38,324 - 38,324
Cost of sales (11,369) - (11,369) (6,997) - (6,997) (18,000) - (18,000)
---------------- ---------- -------------- --------- ---------- -------------- -------- ---------- -------------- ---------
Gross profit 11,513 - 11,513 6,945 - 6,945 20,324 - 20,324
Amortisation
of acquired
intangibles - (2,347) (2,347) - (1,117) (1,117) - (3,272) (3,272)
Other
administrative
expenses (8,192) - (8,192) (4,666) (1,229) (5,895) (12,988) (2,534) (15,522)
---------------- ---------- -------------- --------- ---------- -------------- -------- ---------- -------------- ---------
Total
administrative
expenses (8,192) (2,347) (10,539) (4,666) (2,346) (7,012) (12,988) (5,806) (18,794)
Finance income
- unwinding of
discount on
IVA
revenue 871 - 871 1,262 - 1,262 2,332 - 2,332
Finance income
- other 104 - 104 2 - 2 93 - 93
---------------- ---------- -------------- --------- ---------- -------------- -------- ---------- -------------- ---------
Profit (loss)
before finance
costs 4,296 (2,347) 1,949 3,543 (2,346) 1,197 9,761 (5,806) 3,955
Finance costs (239) (427) (666) (186) - (186) (506) - (506)
---------------- ---------- -------------- --------- ---------- -------------- -------- ---------- -------------- ---------
Profit (loss)
before
taxation 4,057 (2,774) 1,283 3,357 (2,346) 1,011 9,255 (5,806) 3,449
Tax (expense)
credit (822) 562 (260) (721) 505 (216) (1,839) 1,248 (591)
---------------- ---------- -------------- --------- ---------- -------------- -------- ---------- -------------- ---------
Profit (loss)
for the period 3,235 (2,212) 1,023 2,636 (1,841) 795 7,416 (4,558) 2,858
---------------- ---------- -------------- --------- ---------- -------------- -------- ---------- -------------- ---------
Total
comprehensive
income (loss)
for the period 3,235 (2,212) 1,023 2,636 (1,841) 795 7,416 (4,558) 2,858
Earnings per
Share
Basic 7.38 2.33 6.20 1.87 17.17 6.62
Diluted 7.30 2.31 6.13 1.85 16.95 6.53
* Before amortisation of acquired intangible assets, unwinding of discount on contingent consideration and exceptional items.
All of the profit and comprehensive income for the period is attributable to equity holders of the parent.
Consolidated statement of financial position as at 30 June 2015
Company Number 04425339
As at 30 June As at 30 As at 31
2015 June 2014 December
2014
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
ASSETS
Non Current Assets
Property, plant and equipment 1,405 1,268 1,175
Goodwill 17,279 15,995 16,770
Other intangible assets 14,954 17,236 17,424
Trade receivables and amounts recoverable
on IVA services 7,363 10,222 8,294
Total Non Current Assets 41,001 44,721 43,663
-------------------------------------------- -------------- ----------- ------------
Current Assets
Trade receivables and amounts recoverable
on IVA services 13,472 14,608 15,366
Other current assets 6,338 2,574 3,630
Unbilled income 5,755 4,629 5,359
Cash and cash equivalents 2,563 4,612 2,370
Total Current Assets 28,128 26,423 26,725
-------------------------------------------- -------------- ----------- ------------
Total Assets 69,129 71,144 70,388
-------------------------------------------- -------------- ----------- ------------
EQUITY
Share capital 450 450 450
Share premium account 2,514 2,514 2,514
Treasury shares (727) (727) (727)
ESOP share reserve (517) (517) (517)
Merger reserve 11,842 11,842 11,842
Other reserves 254 254 254
Retained earnings 31,657 31,236 32,359
Total equity attributable to equity
holders of the parent 45,473 45,052 46,175
-------------------------------------------- -------------- ----------- ------------
LIABILITIES
Non Current Liabilities
Long-term financial liabilities 6,900 11,463 9,338
(MORE TO FOLLOW) Dow Jones Newswires
September 03, 2015 02:00 ET (06:00 GMT)
Deferred consideration - - 140 Contingent consideration 2,565 5,086 2,201 Deferred tax liabilities 1,078 1,816 1,253 Total Non Current Liabilities 10,543 18,365 12,932 -------------------------------------------- -------------- ----------- ------------ Current Liabilities Trade and other payables 8,612 7,021 7,707 Contingent consideration 3,000 - 2,435 Deferred consideration 184 - 260 Short-term borrowings 813 298 588 Current tax liability 504 408 291 Total Current Liabilities 13,113 7,727 11,281 -------------------------------------------- -------------- ----------- ------------ Total Liabilities 23,656 26,092 24,213 -------------------------------------------- -------------- ----------- ------------ Total Equity and Liabilities 69,129 71,144 70,388 -------------------------------------------- -------------- ----------- ------------
Consolidated statement of cash flows for the period from 1 January 2015 to 30 June 2015
Period from Period from Year ended
1 January 1 January 31 December
to 30 June to 30 June 2014
2015 2014
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Cash flows from continuing operating
activities
---------------------------------------------- ------------ ------------ -------------
Profit after taxation 1,023 795 2,858
Taxation 260 216 591
Share based payments charge 36 36 82
Depreciation of property, plant and
equipment 324 182 385
Amortisation of intangible assets and
development expenditure 2,656 1,320 3,752
Finance income - other (104) (2) (93)
Finance costs 666 186 506
(Increase) Decrease in trade and other
receivables (279) 137 263
Increase (Decrease) in trade and other
payables 905 (1,094) (470)
Cash generated from operations 5,487 1,776 7,874
Interest paid (224) (147) (985)
Income taxes paid (382) (628) (1,230)
---------------------------------------------- ------------ ------------ -------------
Net cash generated from operating activities 4,881 1,001 5,659
---------------------------------------------- ------------ ------------ -------------
Cash flows from investing activities
Purchase of property, plant and equipment
(PPE) (480) (145) (271)
Interest received 104 2 93
Purchase of trademarks (1) - (4)
Software development (118) - (638)
Purchase of intangible assets - (266) -
Purchase of debt management and legal
services books (219) (2,698) (2,890)
Acquisition of subsidiaries - (6,208) (9,683)
Net cash absorbed by investing activities (714) (9,315) (13,393)
---------------------------------------------- ------------ ------------ -------------
Cash flows from financing activities
Equity dividends paid (1,761) (1,596) (2,582)
(Payment) Proceeds of long-term borrowings (2,438) 11,462 9,925
Proceeds (Payment) of short-term borrowings 225 199 (100)
Net cash absorbed by financing activities (3,974) 10,065 7,243
---------------------------------------------- ------------ ------------ -------------
Net change in cash and cash equivalents 193 1,751 (491)
Cash and cash equivalents at start
of period 2,370 2,861 2,861
Cash and cash equivalents at end of
period 2,563 4,612 2,370
---------------------------------------------- ------------ ------------ -------------
Consolidated statement of net debt as at 30 June 2015
------------------------------------------------------
Net debt comprises:
Period from Period from Year ended
1 January 1 January 31 December
to 30 June to 30 June 2014
2015 2014
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------- ------------ ------------ -------------
Short term borrowings 813 298 588
Long term borrowings 6,900 11,463 9,338
Cash and cash equivalent (2,563) (4,612) (2,370)
Net debt 5,150 7,149 7,556
-------------------------- ------------ ------------ -------------
Consolidated statement of changes in equity for the period from 1 January 2015 to 30 June 2015
Share ESOP
Share Premium Merger Treasury Other Share Retained Total
Capital Account Reserve Shares Reserves Reserve Earnings Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January
2014 436 528 11,842 (727) 254 (517) 32,001 43,817
Changes in equity
for the
six months ended 30
June
2014:
Total comprehensive
income
for the period - - - - - - 795 795
Share based
payment expense - - - - - - 36 36
Issue of shares 14 1,986 - - - - - 2,000
Dividends of 3.85
pence
per share - - - - - - (1,596) (1,596)
Balance at 30 June
2014 450 2,514 11,842 (727) 254 (517) 31,236 45,052
Changes in equity
for the
six months ended 31
December
2014:
Total
comprehensive
income
for the period - - - - - - 2,063 2,063
Share based
payment expense - - - - - - 46 46
Dividends of 2.30
pence
per share - - - - - - (986) (986)
Balance at 31
December
2014 450 2,514 11,842 (727) 254 (517) 32,359 46,175
Changes in equity
for the
six months ended 30
June
2015:
Total comprehensive
income
for the period - - - - - - 1,023 1,023
Share based
payment expense - - - - - - 36 36
Dividends of 4.10
pence
per share - - - - - - (1,761) (1,761)
Balance at 30 June
2015 450 2,514 11,842 (727) 254 (517) 31,657 45,473
Notes
1 Status of financial information
The financial information set out in this report is based on the consolidated financial statements of Fairpoint Group plc and its subsidiary companies (together referred to as the "Group"). The accounts of the Group for the six months ended 30 June 2015, which are unaudited, were approved by the Board on 2 September 2015. The financial information contained in this interim report does not constitute statutory accounts as defined by s434 of the Companies Act 2006. This report has neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board.
(MORE TO FOLLOW) Dow Jones Newswires
September 03, 2015 02:00 ET (06:00 GMT)
These accounts have been prepared in accordance with the accounting policies set out in the Annual Report and Financial Statements of Fairpoint Group plc for the year ended 31 December 2014.
The statutory accounts for the year ended 31 December 2014 have been filed with the registrar of Companies. The auditors' report on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498 (2) or 498 (3) of the Companies Act 2006.
Going concern
The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the chairman's statement and chief executive officer's review. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described in the finance director's review.
The financial statements have been prepared on a going concern basis. The Group's existing facility with AIB Group (UK) plc extends to 2019 and was refinanced in August 2015 to provide a total facility of GBP25m. For the purpose of considering going concern the board has considered a period of at least 12 months from the date of approving these interim results.
2 Tax expense
For the period ended 30 June 2015 tax is charged based on the estimated average annual effective corporation tax rate of 20.25% (period ended 30 June 2014: 21.50%).
Notes (continued)
3 Earnings per share (EPS)
Period from Period from Year ended
1 January to 1 January 31 December
30 June 2015 to 2014
30 June
GBP'000 2014 GBP'000
GBP'000
------------------------------------ ---------------- ------------ -------------
Numerator
Profit for the period - used in
basic and diluted EPS 1,023 795 2,858
Denominator
Weighted average number of shares
used in basic EPS 43,830,708 42,524,667 43,183,055
Effects of:
* employee share options 488,021 511,838 569,725
Weighted average number of shares
used in diluted EPS 44,318,729 43,036,505 43,752,780
Adjusted EPS figures are also presented as the directors believe they provide a better understanding of the financial performance of the Group. The calculations for these are shown below:
Period from 1 January Period from 1 January Year ended 31 December
to 30 June 2015 to 30 June 2014 2014
Unaudited Unaudited Audited
Amortisation Amortisation Amortisation
of acquired of acquired of acquired
intangible intangible intangible
assets, assets, assets,
unwinding unwinding unwinding
Adjusted of discount Total Adjusted of discount Total Adjusted of discount Total
* on contingent * on contingent * on contingent
consideration consideration consideration
and and and
exceptional exceptional exceptional
items items items
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- ---------- -------------- -------- ---------- -------------- -------- ---------- -------------- --------
Total
comprehensive
income (loss)
for the
period 3,235 (2,212) 1,023 2,636 (1,841) 795 7,416 (4,558) 2,858
Adjusted
earnings
per share *
Basic 7.38 6.20 17.17
Diluted 7.30 6.13 16.95
* Before amortisation of acquired intangible assets, unwinding of discount on contingent consideration and exceptional items.
4 Dividends
During the interim period, the final dividend relating to the year ended 31 December 2014 of 4.10p per share was paid (6 months ended 30 June 2014: 3.85p). Dividends were waived on 2,082,753 (6 months ended 30 June 2014: 2,158,565) of the 45,024,875 ordinary shares (6 months ended 30 June 2014: 43,609,346 ordinary shares). Of the dividends waived, 888,586 relate to shares held by the Fairpoint Group plc Employee Benefit Trust and 1,194,167 relate to shares held in treasury.
Notes (continued)
5 Segment analysis
Reportable segments
Factors that management used to identify the Group's reportable segments
The Group's reportable segments are operating divisions that offer different products and services. They are managed separately because each business requires different marketing and operational strategies.
Measurement of operating segment profit and assets
The accounting policies of the operating segments are as described in the Group's 2014 Annual Report and Accounts which are available on the Company's website at www.fairpoint.co.uk.
The Group evaluates performance on the basis of adjusted (for exceptional items, unwinding of discount on contingent consideration and amortisation of goodwill, brands and acquired intangible assets) profit before taxation from continuing operations.
Segment assets exclude tax assets and assets used primarily for corporate purposes.
The chief operating decision maker has organised the Group into four operating segments - Individual Voluntary Arrangements (IVA), Debt Management Plans (DMP), Claims Management and Legal Services. These segments are the basis on which the Group is structured and managed, based on its principal services provided. The reportable segments reflect the Group's current and future strategic focus on IVAs, DMPs, Claims Management and Legal Services activities, which each contribute a significant proportion of the Group's revenue.
The segments are summarised as follows:
- IVA consists primarily of the Group company Debt Free Direct Limited, the core debt solution brand. The primary product offering of these brands is an IVA which consists of a managed payment plan providing both interest and capital forgiveness and results in a consumer being debt free in as little as five years of the agreement commencing.
- DMP consists primarily of the Group company Lawrence Charlton Limited, the trading brand used to provide DMPs for consumers. DMPs are generally suitable for consumers who can repay their debts in full, if they are provided with some relief on the rate at which interest accrues on their debts. They could take more than 5 years to complete and offer consumers a fixed repayment discipline as well as third party management of creditors.
- Claims Management activities involves enhancing the financial position of our customers through Payment Protection Insurance (PPI) and other claims and offering a switching facility on personal outgoings such as utility costs, with the primary objective of making the consumers' money go further.
- Legal services activities provide a range of consumer-focused legal services with main lines being family, personal injury and clinical negligence through 13 offices around the UK.
Notes (continued)
5 Segment analysis (continued)
Six month period ending 30 June 2015
Claims Legal
IVA Debt M'ment M'ment Services Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Total external revenue 5,587 3,901 2,079 11,315 - 22,882
Total operating profit 91 1,517 392 1,321 - 3,321
Finance income - unwinding
of discount on IVA revenue 871 - - - - 871
Finance income - other - - - 102 2 104
Adjusted profit before finance
costs 962 1,517 392 1,423 2 4,296
Finance expense - - - - (239) (239)
Adjusted profit (loss) before
taxation 962 1,517 392 1,423 (237) 4,057
Amortisation of acquired
intangible assets (235) (1,644) (121) (347) - (2,347)
Finance cost - unwinding
of discount on contingent
(MORE TO FOLLOW) Dow Jones Newswires
September 03, 2015 02:00 ET (06:00 GMT)
1 Year Debt Free Direct Chart |
1 Month Debt Free Direct Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
