London stock exchange listed law firm Gordon Dadds (Gordon Dadds Group plc) has raised £11.5 million (approximately A$21m) by issuing new ordinary shares – subject to approval by existing shareholders.
The aim of the capital raising is to enable a continuation of its acquisition strategy. One country notably not included in its acquisition pipeline opportunities is Australia. Gordon Dadds announced that its acquisitions pipeline includes “target businesses in Malta, Gibraltar, South Africa, China, Hong Kong and Bermuda, all of which would complement the international network”.
Since August 2017, Gordon Dadds has invested £14 million in five acquisitions, taken on £6 million of debt finance for the purposes of the Acquisition and acquired £43 million of annualised revenues.
At the end of 2018, Gordon Dadds committed to acquiring London based Ince & Co LLP. The total cost of the acquisition is estimated by Gordon Dadds to be £27.3 million.
Gordon Dadds’ operational targets are:
- achieve a gross margin of 50 per cent.;
- maintain total continuing overheads (before acquisitions costs) at 30 per cent. or less; and
- achieve net profit before tax of 15 per cent of earnings as pre-tax profits to shareholders.
The Company achieved a net profit margin of 9.5 per cent for the year ended 31 March 2018.