UK’s second listed law firm Gordon Dadds doubles profit in first results since IPO
Gordon Dadds, which became the second law firm to list on London's public markets in August, has more than doubled its profit in the last year as it revealed its first results since the stock market float.
The Aim-listed firm saw its revenue increase by 14.5 per cent to £12.89m, as adjusted profit before tax increased 103 per cent to £0.58m.
It added that it had net cash of £12.53m on its balance sheet, and was on the hunt for acquisitions.
“Any downturn in the economy, or substantive increase in bank lending rates, will generate further opportunities for both corporate and lateral profitable expansion,” said chief executive Adrian Biles.
The market opportunity we identified at the time of our listing, to consolidate the legal services market in England and Wales, continues to be compelling.
Gordon Dadds' boss added that developments in the firm's mergers and acquisitions pipeline only served to prove this point.
Already this year, Gordon Dadds has grabbed south London solicitors firm Alen-Buckley and tax consultants CW Energy after raising £20m in the initial public offering (IPO) to help build its business. Biles said the businesses had “bedded in very well, and are contributing positively to the group”.
Moving beyond the law
The acquisition of a tax branch is part of Gordon Dadds' aim to become a rounded legal and professional services business, keeping its clients loyal by offering them a whole range of services.
“The considerable benefits of being able to offer multiple services to clients from each part of the group, with the associated multiple touch points and increases in revenue, are beginning to be realised and will continue to improve the group’s performance,” said Biles.
Gordon Dadds is following in the footsteps of Gateley, which became the UK's first listed law firm when it floated in 2015. It has also been looking to expand its range of services beyond legal advice and representation, and acquired tax specialist Capitus last year.
Gateley appears to have kicked off something of a trend, as earlier this month “challenger” law firm Keystone revealed its £50m float plan. A number of other deals have been popping up in the sector between firms who have decided to remain as private partnerships – Berwin Leighton Paisner revealed last month it was in talks to merge with US firm Bryan Cave, and Scotland's Pagan Osborne was snapped up by Thorntons in October.