Legal services specialist Fairpoint (LON:FRP) hiked its dividend again as first half sales surged.
Originally a debt management business, the company acquired legal service firms Simpson Millar and Fosters last year and this is now its largest single business segment, accounting for 49% of revenue, compared to just 8% in 2014.
In the six months to June, sales climbed 64% to £22.9mln, from 13.9mln, while pre-tax profit rose 21% to £4.1mln.
Chris Moat, chief executive, 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 interim dividend went up by 7% to 2.45p.
Since the end of the period, the firm has further boosted its legal services arm with the acquisition of Colemans.
Gary Greenwood at Shore Capital said: “Looking forward, we expect group profit growth to be driven primarily by the Legal Services division as the group continues progressing towards its ambition of creating a top five UK consumer legal services business with revenue of £60mln.”
Shares gained 3.2% to 176p today.