Fairpoint seals £1.2m Pix Disposal

Lancashire-based professional services provider Fairpoint has followed up a warning about its 2017 results by selling a business which provides medical records, reporting services and support to the group's legal services division to a Bolton-based company.

The AIM-listed company has sold PIX for an enterprise value of £1.2m in cash to medical reports provider Premex Services.

PIX, established in 2012, has been providing medical records, reporting services and disbursement funding to certain departments of Fairpoint's legal services division.

Following the deal, Fairpoint has entered into a three-year strategic partnership with Premex for ongoing medical records and reporting services, which is expected to bring operational efficiencies and improvements to working capital.

The proceeds of the transaction will be used to supporting the working capital requirements of the group.

The unaudited gross assets of PIX as at 31 December 2016 stood at £1.6m and the unaudited operating profit for PIX for the financial year ending December 2016 was £0.1m.

Fairpoint, which is headquartered in Adlington, trades under several brand names. It provides IVAs as Debt Free Direct, debt management plans and IVAs via partners as Clearstart, claims management products as Writefully Yours, and consumer legal services as Simpson Millar.