19 Feb 2018 07:00
19 February 2018
Gordon Dadds Group plc
("Gordon Dadds" or the "Group")
Acquisition of Thomas Simon Limited
Gordon Dadds Group plc (AIM: GOR), the acquisitive legal and professional services business, is pleased to announce that it has completed the acquisition of Cardiff solicitors, Thomas Simon Limited ("Thomas Simon") for £1.875 million plus an amount related to net tangible assets.
Thomas Simon's business will be merged with and will complement that of Gordon Dadds' existing Cardiff business, trading under the Gordon Dadds name. Cardiff is the back-office hub for the Group and has had a growing front office established 5 years ago targeted at property, family and private client work and providing a "near shore" service for the rest of the Group.
Gordon Dadds' enlarged Cardiff operation will be a significant firm in the Cardiff business community and the acquisition is in line with the Company's stated strategy for acquisitions as set out in the August 2017 admission document.
The board expects that the acquisition will be earnings enhancing for the first full year, to 31 March 2019.
Summary of Thomas Simon's business
Thomas Simon is a well-established law firm whose main business areas are property (predominantly commercial), corporate, dispute resolution, private client and family. For the year ended 31 July 2016, Thomas Simon achieved unaudited profit before tax of £0.43 million on fee income of £2.09 million.
Gordon Dadds recently moved its central Cardiff client facing business into new modern offices in anticipation of further expansion. Thomas Simon's business will be merged with Gordon Dadds' business in the new offices. The support functions for Thomas Simon's business enhance the Group's back office capacity and will be merged with Gordon Dadds' own support functions.
Summary of the acquisition terms
The Group is acquiring the whole of the issued ordinary share capital of Thomas Simon for a cash consideration of £1,875,000 (payable as to £187,500 on completion and 20 quarterly instalments thereafter) plus an amount related to that realised for debtors and work-in progress, payable quarterly as realised, and other net tangible assets. The vendors of Thomas Simon have warranted that the fee income will be not less than £12.5 million over those five years and any shortfall will reduce the consideration on a £ for £ basis.
Commenting on the acquisition Adrian Biles, Chief Executive Officer of Gordon Dadds, said:
"We have been looking to expand our Cardiff front office operation so as to become a significant player in the Cardiff community and we are delighted to have been able to merge our Cardiff office with Thomas Simon's, blending different skill sets to enhance the Gordon Dadds' offering and grow the enlarged business. In addition, we should achieve economies of scale from merging the support functions over time."
"This is the fourth acquisition we have made since Gordon Dadds' successful IPO in August 2017 and each of them should enhance next year's earnings."
"We shall be focussing over the coming months on realising the benefits of these acquisitions and, in particular, on driving the cross-selling activity which grows the revenue and profitability of the existing and acquired businesses"
Rupert Thomas, Chairman of Thomas Simon, added:
"This is a rare opportunity to create a new force in the solicitor's market in Cardiff and I am looking forward to working with Adrian and his team to realise the opportunity."
FOR FURTHER INFORMATION, PLEASE CONTACT:
Gordon Dadds Group plc Adrian Biles, Chief Executive Officer Christopher Yates, Chief Financial Officer | Via Newgate |
Arden Partners, Nominated Adviser and broker to the Company John Llewellyn-Lloyd Ciaran Walsh
| +44 (0) 20 7614 5900 |
Newgate Communications Adam Lloyd James Ash | +44 (0) 20 7680 6550 Email: gordondadds@newgatecomms.com |
NOTES:
Gordon Dadds Group plc is an acquisitive legal and professional services business headquartered in London with a significant back office and technology platform based in Cardiff.
The Group targets firms of all sizes and will merge the business into the Gordon Dadds brand or allow a firm to retain their identity and culture but benefit from the back-office technology platform used by Gordon Dadds, enabling the targeting of law firms seeking an alternative solution to the regulatory and investment requirements of the UK legal market.
Gordon Dadds LLP has been operating in this way since 2013, successfully integrating firms into its cost efficient platform.
Please visit www.gordondaddsgroup.com for more information.