Two listed companies whose portfolios include established law firms have revealed big profit increases in annual results published today.
Fairpoint Group, which recently acquired north-west firm Coleman-CTTS and bought national firm Simpson Millar in 2014, increased profit before tax by 21% to £4.1m in the full year ending 30 June.
The 2014/15 financials, which reflect the first full year since acquiring Simpson Millar, also revealed that revenue increased by 64% to £22.9m.
Legal services now represent 62% of group revenues and accounted for 49% of total revenue in the reporting period – up from 8% in 2014.
The results announcement, posted on the London Stock Exchange, says the group is in a strong position to grow ‘organically and through further acquisition’, supported by a £25m loan facility.
The company, headed by chief executive Chris Moat (pictured) and which previously concentrated on debt management and individual voluntary arrangements, saw its share price rise by 3.2% following the announcement.
Meanwhile Redde PLC, which entered the legal market through the acquisition of NewLaw under its previous name Helphire last year, says it increased profits before tax by 91% this year.
The company today reported its results for the year ending 30 June and said it made £22.3m profit based on £248.7m turnover.
Redde did not specify what profit was made from NewLaw, but said the firm and its associated businesses made an ‘encouraging contribution’ during the first full year since acquisition and performed in line with expectations.
Principia Law, the company’s other legal services business with a focus on personal injury, has made ‘good progress’ as it emerges from its start-up phase.
Martin Ward, chief executive, said: ‘The group has continued to make very good progress and remains well positioned, with the funds available, to support further growth.
‘Our "GPS" strategy (Growth, Profitability and Sustainability), launched in 2013, is gaining further momentum with a growing pipeline of new business.’
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