Gordon Dadds (GOR)

Gordon Dadds GOR Logo

The acquisitive London-based legal and professional services business.

28-Nov-2017 – 141.5p – £40.5m – PER 18.3

Interim Results For The 6 Months To End September 2017 – Revenue up by 14.5% to £12.89m (H1 2016 £11.26m), Adjusted PBT up by 103% to £0.58m (H1 2016 £0.28m) and Adjusted EPS of 2.26p (H1 2016 2.24p). There’s Net Cash of £12.53m. Outlook is in-line.

Remaining Neutral here for now but will keep an eye on updates here.

Subsequent note: I opened a Long position here.

29-Oct-2018 – 181.5p – £52.2m – PER 12.5

Statement Regarding Merger – Agrees to buy Ince & Co International LLP and its affiliated entities to create the UK’s largest listed law firm by revenue. Trading for the 6 months to end September are in-line and shares will remain suspended until final terms on the merger are clarified.

This seems like good news – I am Long here and will remain so for now (cause I can’t even sell at the moment anyway!).

25-Jul-2019 – 150p – £43m – PER 6.5

Results For The 12 Months To End March 2019 – Revenue up 69% to £52.6m (£31.2m), Adjusted PBT up 141% to £5.9m (£2.5m), Adjusted Diluted EPS up 79% to 18.8p (10.5p), Total Dividend up 50% to 6p (4p). Integration of Ince now complete and the opportunity to cross sell by practice area and geography is huge.

I am Long here and remain so based on these results and the opportunities ahead.  Based on the latest Broker note this morning, in my opinion, this still looks way undervalued on a 1 Year and 2 Year view with a reasonably well covered 5% yield.

Subsequent note: Following quite a bearish note by Paul Scott and with my Technical Stop Loss of 25% within close distance – I decided to sell out here today.

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