Gordon Dadds Share Discussion Threads

[basem1] 19/11/2018 16:35

KGH had a good day today, up 5%. Bodes well for us. Wonder if there'll be any divi with these upcoming results ?

[gopher] 15/11/2018 18:05

Thanks also for the explanation RoseJS2

The problem for any people business is keeping staff onside

[basem1] 15/11/2018 16:30

Any suggestions on a price when returning from suspension ?

[basem1] 06/11/2018 21:49

Thanks RJS2. Should come back with a number beginning with a 2 ?

[rosejs2] 06/11/2018 19:42

gopher... I suspect the reason behind the lengthy suspension is the complexity of the merger / takeover of Ince & Co.. Agreement had to be obtained from the Partners involved then the final terms and conditions which again I suspect needed to be worked out in full...and to everybodys satisfaction (100 Partners etc)

This merger / takeover is a fundamental change in the status and size of Gordon Dadds..It will have a new name Ince Gordon Dadds, creates the largest publicly listed law firm in Britain and propels it into the country’s top 40 with forecast annual revenues of £110 million.

Based in Aldgate near the City of London, the expanded legal services business will have 100 partners and offices in nine countries. This is a far cry of What Gordon Dadds looked like at its intitial Public Offering through AIM..

Hopefully you will be well rewarded for your patience when the suspension is lifted.

[gopher] 06/11/2018 17:39

They could surely never list on the main market with a suspension of this length

[rosejs2] 05/11/2018 13:53

29th October 2018

Current trading

Gordon Dadds Group plc is preparing its results for the 6 months ended 30 September 2018 and expects to announce its interim results around the end of November. The directors consider that the results will be in line with market expectations.

AIM trading suspension

Gordon Dadds shares will remain suspended pending further clarification on the final terms and conditions and financing of the proposed merger.

[basem1] 05/11/2018 13:32

I'm beginning to resent having 15% of my funds tied up in here. When the hell is it coming back from suspension ? !!

[acropolis1728] 29/10/2018 11:29

I bet . Sad day for Ince but it does mean their name survives and that is worth something in their key sectors. But they have lost a lot of talent in the past 24 months including most recently the head of their maritime insurance team to Stephenson Harwood. Ince unbelievably has no maritime insurance capability for the first time in its history.

[basem1] 29/10/2018 11:01

That's why they are a distressed seller perhaps ? Bet the Ince chairman has had to swallow his pride in making that statement.

[acropolis1728] 29/10/2018 10:53

You are right on figures and I cant dispute the logic but that suggests Ince income down from 84m to 68m? That doesn't sound good!

[basem1] 29/10/2018 10:24

You sound a lot more knowledgeable on this than myself acropolis. I just looked at the headline numbers. GD t/o £42m Proposed Group t/o £110m And worked out the difference. Obviously £9m extra costs to go on there.

[acropolis1728] 29/10/2018 10:00

Where did you get the £68m turnover from?

On paper for the last financial year ending April 2018 they are talking about around £84m but with the London fee income collapsing down to £44m against operating costs of around £40m. I think you will now see the partners who have been locked in on a year's notice now leaving. That will number about 9 or 10 from across the various offices. This was a rescue purchase and so GD will have driven a hard bargain. The announcement says they will also pay off £9.1m for the partner's capital and current accounts. Looking at previous deals then they will pay the 34m over 3-5 years depending on turnover. That will be the challenge for the new entity. Increasing turnover and locking in partners for three years until the share options arise. The difference will be that the partners will hugely more accountable than they have been used to.

[basem1] 29/10/2018 07:29

Looks like a good deal. Bought approx £68m turnover for £34m. Be interesting to see how they raise the finance. Anyone care to comment

[elmfield] 26/10/2018 21:00

What an idiot that man is,
Why would you have him as a consultant?
Good article in the times,
The man is thick why did GOR ever employ him as a consultant?

[jonwig] 26/10/2018 20:11

Just a bit of tittle-tattle - Lord Peter Hain is a paid political advisor to Gordon Dadds. Gordon Dadds is the Telegraph's lawyer in the gagging order business. Peter Hain named Philip Green in the Lords in connection with this case.

[rosejs2] 04/10/2018 09:31

BD ... Business Development ?

[rosejs2] 29/9/2018 17:18

IC View
Gordon Dadds’ share price was 182p prior to suspension. It’s difficult to predict the terms of the potential merger, but we imagine the market will react positively if the deal proceeds. We remain bullish, awaiting the resumption of trading.

Last IC view: Buy, 173p, 2 Aug 2018

[acropolis1728] 27/9/2018 12:29

Ince is a global firm so revenue being quoted above are for London office only. Although figures look bad there. Recent filing suggests that London revenue down from 51 to 42 m with operating costs at 40m. London is in trouble an they are trying to hive off 20% of office space. They have just got rid of another 34 staff. Lets assume there are several partners who have given notice in London and across the global firm to leave and their notice periods are about to end then that news has not hit the market. Foreign office must be vulnerable to floating off save that the partners maybe about to get a pay out for their shares. Hugely disappointing time for anyone that has been part of the Ince company.

[allonblack] 27/9/2018 11:16

So if they identify 10m of cost saves we only want 7m max in incentives going to ince partners. The split of incentives/retention as a pc of cost saves has to match merger split too. Otherwise we are just debt at 3pc.

[allonblack] 27/9/2018 11:12

Only thing I will say is that this could get messy if GD and Ince think they can pay all the cost synergies to the partners ignoring minority shareholders. Companies Act pretty tight on that these days. Thats my only reservation.

[battlebus2] 27/9/2018 10:29

Turnover for 2017 was 51 million with O/P of 11 million and net assets of 9.6

[allonblack] 27/9/2018 09:23

Ince have a really bloated cost base. If this happens and is a merger then gd should fly. I reckon 8m cost savings to come out of which gd would get 30-50pc.