Gordon Dadds Group PLC Agreement (0689V)

TIDMGOR

RNS Number : 0689V

Gordon Dadds Group PLC

04 April 2019

4 April 2019

Gordon Dadds Group plc

("Gordon Dadds" or the "Company")

Five former Ince & Co network firms to join Ince Gordon Dadds with new commercial arrangements

-- The Ince Gordon Dadds group is growing to include twelve offices in seven countries after former Ince & Co network firms in Hong Kong, Singapore, Dubai, Greece and Germany agreed to enter new arrangements

-- Revenue for these operations is over GBP23 million alongside the current GBP77 million annualised revenues for Gordon Dadds

   --     The new arrangements are expected to generate increased profitability 

Gordon Dadds Group plc (AIM: GOR), the acquisitive London-based legal and professional services business, today announces that it has agreed to enter into new arrangements with the independent legal entities which are former Ince & Co network firms in Hong Kong, Singapore, Dubai, Greece and Germany with effect from 1 April 2019.

The international firms are, as stated in previous announcements, deepening their relationships with the group following the successful completion of due diligence and consultation with regulators.

Commenting on the new arrangements, Adrian Biles, Chief Executive Officer of the Company, said:

"The Ince name is a leading global brand and I am delighted that the former Ince & Co international partnerships will continue to operate as one, as members of the Ince Gordon Dadds group.

"The integration of Ince's London office with Gordon Dadds, to form Ince Gordon Dadds, has progressed smoothly and the commercial benefits of the larger operation are beginning to be demonstrated.

With the expanded international group now encompassing twelve offices across seven countries and some GBP100 million of annual revenues, I look forward to continuing this trend of growth and expansion, as we continue to offer clients an impressive breadth and depth of service both by practice area and geography."

The firms will be bound with Ince Gordon Dadds to operate closely together under new commercial arrangements and a new governance structure. The members of the partnerships will commit to a common structure governing the membership, business, conduct and management of the international firms and the rights, duties and obligations of their members. The structure will be controlled through membership of a new non-trading international governance entity.

Revenues of the partners continuing in those firms is the only meaningful measure of the impact of these new arrangements on Gordon Dadds. The revenues attributable to the 19 partners of those firms who are continuing in those businesses for the year ended 30 April 2018 were GBP23 million, split as to GBP4 million in Germany, GBP3 million in Greece, GBP5 million in Dubai, GBP2 million in Singapore and GBP9 million in Hong Kong. The group's annualised revenue run rate of GBP42 million previously announced, together with the GBP31 million revenue of the Ince & Co UK business acquired on 31 December 2018, means the international firm's combined revenues are now some GBP100m from some 450 fee earners.

The international firms will continue to be separate legal entities owned by the local partners, operating under the Ince name.

The new arrangements do not include any requirement for any consideration to be paid.

FOR FURTHER INFORMATION, PLEASE CONTACT:

 
 Gordon Dadds Group plc                                 Via Portland 
  Adrian Biles, Chief Executive Officer 
  Christopher Yates, Chief Financial Officer 
 
   Portland Communications                                [phone] 
   Steffan Williams                                       1789 
   Simon Hamer                                            Email: 
   Lauren Gallagher                                       [e-mail] 
 
   Arden Partners plc 
   Nominated Adviser and sole broker to the Company 
   John Llewellyn-Lloyd / Ciaran Walsh / Alex Penney 
   - Corporate Finance                                    [phone] 
   Fraser Marshall - Corporate Broking                    5900 
 

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April 04, 2019 02:01 ET (06:01 GMT)