Ince Group Plc, a legal and professional services firm, has announced its plans to enter administration and seek a sale of the company. This move comes amid cash
concerns and repeated delays in the publication of the company's financial results. The directors of Ince applied to London's High Court on Wednesday to appoint administrators under UK insolvency law in relation to the company and four subsidiaries.
Ince is one of only a few listed British law firms, including DWF Group and Keystone Law Group. Trading in Ince on London's Alternative Investment Market was suspended on January 3rd, 2022, due to delays in publishing the company's annual report for the year ending March 31st, 2022. Ince stated in a Wednesday statement that the audit was still incomplete, and that the suspension of the stock and ongoing audit had put "increasing pressure" on its cash flows.
According to court filings, an unnamed major creditor informed the company that it would "no longer continue to support the business," forcing Ince to enter administration. The company stated that UK-based financial restructuring firm Quantuma will be appointed as Ince's administrator and is expected to "implement a sale of the group's business to a third-party purchaser as soon as possible."
Ince's share price has fallen sharply over the last year, plunging 94% from a high in mid-April 2021 to January when trading in the stock was suspended. The shares fell more than 50% in July after the company announced a plan to raise around 7 million pounds ($8.7 million) to avert financial difficulties.
Last year, Ince also disclosed that a March 2022 cyberattack would cost the company nearly 5 million pounds. The company has been struggling with its finances for some time now and has been seeking to raise funds and reduce costs. However, the repeated delays in publishing its financial results have only added to its problems, resulting in this decision to enter administration and seek a sale of the company.
Ince's troubles reflect the broader challenges faced by the legal sector, which has been hit hard by the pandemic and economic uncertainty. Many firms have struggled with cash flow and have had to cut costs, while others have been forced to restructure or merge with other firms. The industry is also facing increasing competition from alternative legal service providers, which are offering cheaper and more flexible services to clients.
In conclusion, Ince's decision to enter administration and pursue a sale of the company highlights the challenges faced by the legal sector in the current economic climate. While the company's financial difficulties are specific to its own situation, they reflect broader issues affecting the industry as a whole. The sector will need to adapt and innovate to stay competitive and weather the ongoing economic uncertainty. Photo by Mohamedramadanabdalstar, Wikimedia commons.