Gordon Dadds Group PLC Acquisition of Thomas Simon Limited (2041F)
February 19 2018 - 2:00AM
UK Regulatory
TIDMGOR
RNS Number : 2041F
Gordon Dadds Group PLC
19 February 2018
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 GBP1.875 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 GBP0.43
million on fee income of GBP2.09 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 GBP1,875,000
(payable as to GBP187,500 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 GBP12.5 million
over those five years and any shortfall will reduce the
consideration on a GBP for GBP 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 Via Newgate
Adrian Biles, Chief Executive
Officer
Christopher Yates, Chief
Financial Officer
Arden Partners, Nominated
Adviser and broker to
the Company
John Llewellyn-Lloyd
Ciaran Walsh +44 (0) 20 7614 5900
Newgate Communications +44 (0) 20 7680 6550
Adam Lloyd Email: gordondadds@newgatecomms.com
James Ash
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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