Alternative business structures

Beaumont ABS – the alternative business structure owned by US giant LegalZoom – has said it is heading towards a “sizeable” profit next year after its first accounts showed a £2.1m loss. This was due to a significant and planned-for investment after it bought Wakefield law firm Beaumont Legal in early 2016 for £6.4m.

Riverview Law has become the first law firm to offer its trainee solicitors a six-month seat in technology services, having obtained approval from the Solicitors Regulation Authority. We also have news from ABSs Co-operative Legal Services, Express Solicitors, Keoghs, gunnercooke, Gateley and Astute Dynamic – with diversification a notable theme.

A large north of England debt collection agency has launched an alternative business structure to bring work in-house after commercial clients demanded a “seamless cradle to grave service”. The aim is “to continue the service that we already supply but do it from our internal resources rather than through partnerships with law firms”.

Pioneering alternative business structure (ABS) Genus Law – which started life with the somewhat bolder name Brilliant Law – closed last month, with its book of business sold to fellow ABS Alpaca Law, it has emerged. Meanwhile, another groundbreaking ABS, Co-operative Legal Services, announced a rise in turnover but dip in profits for the first half of 2017.

The Chartered Institute of Legal Executives has become the latest legal regulator to apply to license alternative business structures. Chartered legal executives have been able to set up their own law firms since 2015, but not if they have non-lawyer ownership or investment.

Redde, the AIM-listed accident management company that owns two law firms has recorded strong annual results, with turnover up 25% and profits increasing 16%. It also laid out how it is growing the services offered by its main firm, pioneering alternative business structure NewLaw Solicitors, into areas other than road traffic-related claims.

National law firm Gateley has told investors that its decision to list on the London Stock Exchange will help it withstand potential economic uncertainty caused by Brexit. Its annual report also showed that finance director Neil Smith was the top earner among the senior management in the year to 30 April 2017.

Peace Crowell, a niche US firm specialising in energy and infrastructure projects, has opened a London office as an alternative business structure (ABS). In other ABS news, Simpson Millar has sold its financial services arm, Metamorph Law has made another acquisition, and Irwin Mitchell has unveiled encouraging financial results.

Law firms have been warned not to charge excessive fees for payment protection insurance claims, while claims management companies were told that becoming alternative business structures was not a way to avoid caps on their fees.

Specialist sports and events agency The Sports Consultancy has launched an alternative business structure to add to its services for rights holder, major event, venue and city clients. It described The Sports Consultancy Legal as “the next step in the evolution of the business’s offering and the first ABS of its kind.

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.