Alternative business structures

A business that supplies unregulated legal services to SME clients worldwide via a virtual law firm using more than 100 consultant lawyers, has added an alternative business structure to its group to offer regulated services to UK consumers.

National law firm Simpson Millar has insisted that it is “business as usual” after its listed parent copany, Fairpoint Group, announced its intention to appoint administrators. Last month, the group announced that its debt had been sold on and that a £5m funding facility had been provided to the legal services business.

London law firm Gordon Dadds has agreed the reverse takeover that will see it become a listed company and outlined an ambitious acquisition strategy to double its £25m revenue over the next three years by becoming a “major consolidator” of both top 200 law firms and also smaller practices through a back-office platform that it has developed.

London law firm Gordon Dadds is set to become a public company through a reverse takeover of AIM-listed Work Group that values the firm at nearly £19m, it announced this afternoon. Alongside the acquisition, Work Group – an investing company – intends to raise up to £20m via an accelerated bookbuild placing of up to 457m shares to institutional investors.

Listed law firm Gateley has announced strong results for its last financial year, with revenue up 16% to £78m and profit before tax jumping 19% to £13m, alongside increased equity participation among staff. Shareholders at the first listed alternative business structure are set to receive a final dividend of 4.4p.

The groundbreaking alternative business structure owned by two major trade unions has begun its plan to provide legal services to other unions after signing a deal with the British Dietetic Association to launch BDA Legal. In other ABS news, Fairpoint Group plc has announced that its bank has assigned its debt to a new financier.

Two alternative business structures have moved to extend their reach to corporate finance advisory work with separate joint ventures. Cardiff-based Greenaway Scott Group has launched a boutique as part of a joint venture with Lime Finance, while Needle Partners in Leeds has teamed up with Sheffield-based corporate advice firm Mackenzie Spencer.

Andrew Grech has stood down as group chief executive of Slater & Gordon after a recapitalisation deal was agreed with its lenders that will see them take control of the embattled law firm. The deal is intended to provide the firm with “a sustainable level of senior secured debt and a stable platform for its future operation”, it said.

Shares in Fairpoint Group have been temporarily suspended after its bank pulled its backing for the legal services business. The company said that because AIB Group (UK) plc was unwilling to provide the level of on-going support it had requested, it was unable to sign-off the audit of its 2016 annual report and accounts.

An alternative business structure specialising in property recovery and tenant evictions has been acquired by a major property industry insurer, Hamilton Fraser. Landlord Action Limited – whose founder fronts Channel 5 series Nightmare Tenants, Slum Landlords – plans to expand its fixed-fee landlord and letting agent-focused services.