The Ince Group HY20 Results

Accountancy, Company Profiles, Legal — By on November 28, 2019 at 7:40 AM

Andrian Biles

The Ince Group HY20 Results

28 November 2019

The Ince Group plc

(“Ince” or the “Group”)

Interim unaudited results for the six months to 30 September 2019

  • Strong first half with revenue up 125% and adjusted profit before tax up 264%
  • Nine partners hired across five offices  
  • Successful transformation to a global business now complete

The Ince Group PLC (AIM: INCE), the international legal and professional services company, is pleased to announce its unaudited results for the six months ended 30 September 2019.

For the six months ended 30 September (£m) 2019 2018 % Growth
Revenue 45.3 20.1 +125%
Adjusted profit before tax* 4.0 1.1 +264%
Adjusted diluted earnings per share (p)** 6.3p 1.9p +232%
Basic diluted earnings per shares (p) 5.1p (0.6)p N/A
Dividend per share (p) 2.0p 2.0p Unchanged
Net (debt)/cash (10.4) 3.1

* Adjusted profit before tax is calculated, as shown in note 6 to the financial statements, as the profit before tax after adding back non-recurring items of £0.5m in 2019 (2018: £0.7m) and after deducting the non-controlling interests (or partners’ profit shares) as shown in the financial statements below of £7.1m in 2019 (2018: £3.2m).

** Adjusted diluted earnings per share is computed from adjusted profit before tax after deducting taxation

Financial highlights

  • With the Ince transaction plus the five acquisitions in the previous year annualised profitable revenue is now c.£100m.
  • Revenue increased to £45.3m, 125% up from 2018.
  • Adjusted profit before tax increased to £4.0m, 264% up from 2018.
  • Organic growth over last year approximately 5.3%.
  • Adjusted earnings per share increased to 6.3p, 232% up from 2018.
  • Former Group London office vacated and lease terms for Aldgate Tower improved, yielding an annual saving of some £2.4m.
  • Net debt at the period end of £10.4 million resulting from the working capital invested in successful lateral hires and the costs of integrating the Ince business.
  • Rationalisation of back office completed yielding further annual savings of £2.6m.

Operational highlights

  • Now operating from 23 offices in eight countries across Europe, the Middle East and Asia, up from 11 offices in two countries this time last year.
  • New “Ince” brand established globally.
  • Integration of consolidated businesses completed.  Successful revenue creating collaboration between offices and development of overseas offices progressing well including:

o   Ince’s London operations successfully merged and overseas operations brought within the Group from April 2019.

o   Acquisition of Ince Gibraltar (formerly Ramparts) completed in April 2019 and performing well.

o   Partner and client retention strong across the business.

  • Lateral hire of three partners and over 20 staff in Hong Kong.
  • Separate London office in the Lloyds Building in Leadenhall Street opened in June 2019, strengthening the Group’s contact with insurance clients.
  • Mayfair office under the Gordon Dadds brand to service family and private client business opened in September 2019.
  • New practice management system owned by the Group being introduced, which will lead to significant operational improvements.
  • Strategic senior appointments to deepen and extend management capacity and service lines including:

o   Mark Tantam, formerly a vice chair of Deloitte, appointed as Global Head of Consulting.

o   Julian Clark, formerly Global Head of Shipping at Hill Dickinson, appointed as Senior Partner.

o   Alexander Janes, a former global managing partner of Orrick, Herrington & Sutcliffe, joining as head of Europe, Middle East and Africa.

Adrian Biles, Group Chief Executive, commented:

“These strong results are a vindication of our strategy. They are the product of the new international platform we have developed under the Ince brand. We remain on track to deliver  c.£100m of annualised revenue in the current financial year, even with political headwinds buffeting some key markets across the globe.

“The second half of the year traditionally provides the majority of the Group’s profits and the lateral appointments we have made will largely show through next year.  The attractions of our model and approach are being recognised amongst senior lawyers and professionals in major financial markets around the globe as can be seen from the quality of our newest hires.

“I remain confident that the business can continue to develop from here generating increasing revenue and profits.”

Enquiries:

The Ince Group plc                                                               investorrelations@incegd.com

Adrian Biles, Group Chief Executive

Christopher Yates, Chief Financial Officer

Arden Partners

Nominated Adviser and broker to the Company                             +44 (0) 20 7614 5900

John Llewellyn-Lloyd, Corporate Finance
Ciaran Walsh, Corporate Finance
Fraser Marshall, Equity Sales

Portland Communications                                                               +44 (0) 20 7554 1789

Steffan Williams                                                         ince@portland-communications.com

Simon Hamer

Lauren Gallagher

Analyst presentation:

A presentation for analysts and institutional investors will be held today, 28 November 2019 at 11.00am (GMT) at Ince, Aldgate Tower, 2 Leman Street, London, E1 8QN. All participants must be pre-registered with Portland Communications in order to attend the meeting.

About The Ince Group plc

The Ince Group is an international legal and professional services business with 23 offices in eight countries across Europe, the Middle East and Asia. With nearly 900 people, including over 100 partners worldwide, 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.

Please visit www.theincegroup.com for more information.

28 November 2019

The Ince Group plc

(“Ince” or the “Group”)

The Ince Group appoints Mark Tantam as Global Head of Consulting Acquisition of Mahtcorp1 Limited

 International legal and professional services firm, The Ince Group plc (AIM: INCE), is pleased to announce the appointment of Mark Tantam as Global Head of Consulting.

 This appointment is to a new position for the Group and reflects its plan to broaden its offering from legal and professional services into a wider range of business solutions.

 Mark will report directly to Chief Executive Adrian Biles and will sit on the Group’s Executive Committee.

Mark, a barrister by training, comes with a wealth of knowledge in consultancy having spent the last 20 years as a Forensic Partner at Deloitte UK. During his time at Deloitte he spent seven years as leader of the Forensics business and five years as one of the Vice Chairs of the UK firm.

Adrian Biles, Chief Executive of The Ince Group plc said:

“Mark has amassed a wealth of expertise throughout his career and I am delighted he will be joining us as we continue to grow our offer to clients. Our growth strategy will benefit hugely from individuals such as Mark as we continue to offer a more integrated and varied set of services.”

Mark Tantam said on his appointment to Global Head of Consulting:

“I’m incredibly eager to be joining the Group at this exciting time. It’s forward looking and modern approach to servicing its clients is both innovative and successful with the growth it has already seen. I can’t wait to further help the Group and its clients on this journey.”

Mark’s services will be provided to the Group through Mahtcorp1 Limited which has the benefit of a service contract with Mark. Ince has agreed to acquire that company in consideration of the issue of 350,000 new ordinary shares in The Ince Group plc to Mark, subject to certain sale restrictions.  It is expected that the new shares will be admitted to trading on AIM at 8.00 am on 4 December 2019 and will, when issued, rank pari passu with all other ordinary shares in issue.

On admission of the 350,000 new shares to trading on AIM, the Company’s issued share capital will comprise 37,326,730 ordinary shares in aggregate. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.

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