The results were actually better than some analysts had anticipated with Fairpoint's fully diluted adjusted EPS of 19p ahead of joint house broker Panmure Gordon's estimate of 18.4p, and well up on the 17p figure reported in 2014. This reflects a 13 per cent rise in underlying pre-tax profits to £10.5m driven by a 41 per cent hike in revenues to £54m on the back of acquisitions made in legal services, full details of which I have highlighted in my previous articles. Moreover, with cash generation robust, the board was able to hike the payout from 6.4p to 6.8p a share. Net cash generated from operating activities increased by more than 40 per cent to £7.9m, enabling the board to pay out dividends of £2.9m to shareholders and use the balance of operating cash flow to part fund £11m-worth of earnings-accretive acquisitions in its legal services division.
Legal services growing strongly