TIDMINCE
RNS Number : 2510B
Ince Group PLC (The)
30 September 2022
30 September 2022
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information, as stipulated under the UK Market Abuse Regulation.
With the publication of this announcement, this information is now
considered to be in the public domain.
The Ince Group plc
("Ince", the "Company" or "Group")
Trading Update
The Ince Group plc (AIM: Ince), which provides legal, financial
services, consulting, and pension advice services, announces a
trading update ahead of the Company's annual general meeting
today.
UK & EMEA
In the UK the new management team has continued to refocus the
performance metrics of the business and, in particular, to overhaul
cash collection procedures. On 12 September 2022, we announced the
appointment of Jill Watt to the senior management team as the UK
law firm's new head of finance and administration ("HOFA"). Jill
has already made significant improvements to our outstanding fee
collections, which in turn assist our cash position as we make
positive inroads into our GBP11.8m outstanding debtor book in the
UK.
On 15 September 2022 we announced the successful disposal of CW
Energy LLP which removed GBP2.9m of deferred consideration from the
Group's balance sheet.
In the period to August 2022 the UK continued to experience
difficult trading conditions, but revenues have continued to
recover to near 2021 levels. The UK forecast turnover for the
retained business remains on track. Notwithstanding increasing
activity levels, the Group retains significant productive capacity
given its staff retention policy through the Covid-19 pandemic.
The UK legal business will consolidate its various teams and
refocus on sectors/divisions to facilitate increased utilisation
and cross selling. Management in the UK will now be assisted by the
newly established Executive Management Committee comprising seven
Partners and the UK HOFA.
Our practices across EMEA have continued to make progress and
are now very much aligned to our core shipping, corporate and
insurance business, although our German practice is still in a
period of turnaround. A plan is being developed to restructure our
European business to align more specifically to our core legal
business. This may include an accounting deconsolidation of part of
our German business following a review of its local regulatory
structure, although that business will continue to work closely
with the Group as part of our future strategy and in order to
maintain a strong presence in that market, and we expect to be able
to provide a further update on this in the annual report.
Asia
The Covid-19 pandemic has continued to have a negative impact on
our Asia business and the travel restrictions continue to hamper
cash collection and the reduction of cash lock up. However, the
team have continued to develop business working with our high
quality clients, especially in our core sectors, and the business
retains a strong cash position in China. Restrictions on travel are
beginning to lift, which will ease pressures on direct engagement
by the Group's management with the local teams and will also allow
those local teams easier access to their clients to begin the
process of reducing built up working capital.
In Singapore, trading conditions have been difficult. The
Singapore-based Incisive business, which was merged into the Group
in May 2020, may also be deconsolidated in the Group's accounts as
a result of having clarified its local regulatory position,
although that business will continue to work closely with the Group
as part of our future strategy and in order to maintain a strong
presence in that market, and we expect to be able to provide a
further update on this in the annual report.
Cash position
The Group currently has cash of approximately GBP3.5m and net
debt of approximately GBP15m. The Group's third party debt funders
remain supportive of the Group and the new management's strategy
for cost reductions, rationalisations and a more sector and
specialism focussed strategic approach to future growth.
Current trading update
An analysis of recent performance indicates that the business is
on track to have increased trading activity over the full year to
31 March 2023. However, results for the six months to 30 September
2022 are not expected to improve on the same period in the prior
year on a like-for-like* basis.
The business is continuing to make positive progress under the
new management and the previously announced cost rationalisation
exercise remains on track. An update on the extent of annualised
savings achieved through this exercise will be provided in the
upcoming annual report.
A settlement was reached with the former directors of the Group
and/or subsidiaries, Adrian Biles and John Biles, with minimal cash
payments being required to achieve this, as outlined in our
statement released on 28 September 2022.
Overall, revenues for the year ended 31 March 2022, are expected
to be approximately GBP97m as indicated in the announcement of 23
May 2022, subject to audit and the accounting treatment which may
arise from potential accounting deconsolidations of Singapore and
Germany referred to above.
The release of the audited annual statements for the year ended
31 March 2022 has been delayed until November 2022, as announced on
6 September 2022.
Donald Brown, Chief Executive Officer of the Ince Group plc,
said: "In my short time as CEO I am delighted with the progress we
have made as a team. The Group continues to undergo a period of
renewal supported by an excellent team of partners and clients.
Together we are committed to providing a strong platform for future
success, most of the components for which are already in place. I
look forward to providing a more fulsome update at the time of the
publication of our Annual Report."
* Like-for-like revenue refers to the Group performance
excluding results for the now disposed of CW Energy LLP business
and the potential accounting deconsolidations of the Germany and
Singapore businesses.
Enquiries
The Ince Group plc
Donald Brown, Chief Executive Officer investorrelations@incegd.com
Simon Oakes, Chief Financial Officer
Allenby Capital Limited - Nominated
Adviser +44 (0) 20 3328 5656
Jeremy Porter / Piers Shimwell, Corporate
Finance
Arden Partners plc - Broker +44 (0) 20 7614 5900
John Llewellyn Lloyd, Corporate Finance
Louisa Waddell, Corporate Finance
Simon Johnson, Equity Sales
About The Ince Group plc
The Ince Group is a dynamic international legal and professional
services business with offices in nine countries across Europe,
Asia and the Middle East. With over 700 people, The Ince Group
delivers legal advice, strategic guidance and business solutions to
clients ranging from the world's oldest and biggest businesses
operating across numerous industries to ultra-high net worth
individuals. Through its entrepreneurial culture and "one firm"
approach, the business offers its clients over 150 years of
experience, insight and relationships. The Group is driven by a
unique team of passionate people whose broad expertise and deep
sector specialisms provide their clients with solutions to all
their complex legal and strategic needs.
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