TIDMDWF
RNS Number : 4105R
DWF Group PLC
08 March 2021
DWF Group plc
("DWF" or the "Company")
LEI: 213800O9QREOHTOGQ266
8 March 2021
Operating and trading update
DWF, the global provider of integrated legal and business
services, today issues the following update on current trading and
some changes to its Australian footprint.
Management has continued to review operations and performance
levels to ensure all locations align with the Group strategy. The
decision has been taken to rationalise the Group's Legal Advisory
operations in Australia, with an orderly closure of those
operations in Melbourne, Sydney and Newcastle. The Brisbane office
and the Group's Connected Services operations in Sydney, Melbourne
and Brisbane will be retained.
These changes will enable a leaner Australian business to focus
on institutional clients and core sectors, such as insurance, which
have a stronger strategic fit for the Group and offer the best
opportunity for sustainable and profitable growth, by integrating
other products and services provided by Mindcrest and Connected
Services.
Subject to the formal consultation process which will be
undertaken, the Group anticipates that the office closures will
regrettably result in approximately 85 employees and 14 principal
lawyers (partners) leaving the business. Damien van Brunschot will
continue to lead the Australian business and will join the Group's
Executive Board from 1 May as previously announced.
While we expect an FY21 loss for the Australian operations of
between GBP3m and GBP4m and some one-off non-underlying associated
closure costs in FY21, these changes are anticipated to be earnings
enhancing for the Group.
Irrespective of the action being taken in Australia, the Group
continues to see an improving financial performance for FY21 with
Q3 trading building upon the positive revenue and profit trajectory
reflected in the FY21 interim results. The Group expects FY21
performance to be at least in line with expectations.
Sir Nigel Knowles, Chief Executive Officer, commented: "It is
never easy making decisions like this, but rationalising our
Australian operations is about focusing our investment resources on
areas aligned to Group strategy and priority sectors and clients,
something that we have done very successfully in Dubai and
elsewhere. I am confident that we will continue to grow our global
operations in the future.
"Whilst we will part company with valued friends and colleagues
in some locations, we retain a strong and respected team in
Brisbane, with a renewed emphasis on our Insurance practice. We
also retain Connected Services in Brisbane, Sydney and Melbourne
and will continue to bring our Mindcrest offering to this market.
We remain committed to the Australian market, and wish our
departing colleagues well as they transition their practices
"As we approach our FY21 year end in April, we remain confident
in our performance and have seen strong activity levels in our
third quarter ending in January, and are enjoying a busy start to
our fourth quarter. We therefore continue to view the future with
confidence."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014. The person responsible for
release of this announcement on behalf of the Company is Chris
Stefani (Chief Financial Officer).
For further information:
DWF Group plc
James Igoe +44(0)7971 783533
Head of Communications & IR
Maitland/AMO +44(0)7827 836246
Sam Turvey
About the Company
DWF is a global provider of integrated legal and business
services provided through its three offerings of Legal Advisory,
Mindcrest and Connected Services, operating from 31 key locations
with over 4,000 people. The Company became the first Main Market
Premium Listed legal business on the London Stock Exchange in March
2019. DWF recorded revenue of GBP297.2 million in the year ended 30
April 2020. For more information visit: dwfgroup.com
In January, the Group announced a new internal operating
structure which it believes will support its aim of becoming the
leading global provider of integrated legal and business services.
Effective from 1 May, DWF will move from its existing four
divisions (Commercial Services, Insurance Services, International
and Connected Services) into three more streamlined and efficient
global divisions of Legal Advisory, Mindcrest and Connected
Services.
Together, the three divisions will support DWF's single
Integrated Legal Management approach through which the Group can
seamlessly combine any number of these services to deliver bespoke
solutions to its clients with greater efficiency, price certainty
and transparency. This approach enables DWF to offer clients
solutions that combine traditional law firm services with new,
modern legal and business services relevant to today's companies
and the challenges and opportunities they face.
Forward looking statements
This announcement contains certain forward-looking statements
with respect to the Company's current targets, expectations and
projections about future performance, anticipated events or trends
and other matters that are not historical facts. These
forward-looking statements, which sometimes use words such as
"aim", "anticipate", "believe", "intend", "plan" "estimate",
"expect" and words of similar meaning, include all matters that are
not historical facts and reflect the directors' beliefs and
expectations and involve a number of risks, uncertainties and
assumptions that could cause actual results and performance to
differ materially from any expected future results or performance
expressed or implied by the forward-looking statement.
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March 08, 2021 02:00 ET (07:00 GMT)
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