29 May 2020 – trading update

The legal group has revealed that its business suffered more than expected in April from the effects of coronavirus and so profits for the year to 30 April will be lower than previously expected.  Previously the group had expected revenue growth of between 15% and 20% for the year but this actually emerged at 11%.  The group has seen activity levels increase in May and helped by strong cash collections in April net debt at the year end was £64.9m, a little better than expected.  The group has implemented the previously announced cost reduction programme and is looking at extending this.  The company has also announced that Sir Nigel Knowles, the current chairman, who is well known in legal circles is to take over as CEO.  Although the statement is a little disappointing, the downturn comes as little surprise given the circumstances and with the shares having halved in the last three months we believe they are a BUY FOR RECOVERY.