The Ince Group Plc, a legal and professional services firm, has announced its intention to enter administration and seek a buyer for the company. This decision comes amidst concerns about cash flow and repeated delays in financial reporting. 

The company’s shares were suspended on January 3. Before this, their value fell to 5.15% of the original – a 99% decrease since 2018. Ince has a history dating back 150 years and was once the largest listed law firm in London. After a successful float in 2017, it is now headquartered in Aldgate and employs over 700 employees. However, the company has struggled to maintain profitability in recent years. 

Owing to delays in the release of its annual report, the company made the decision to halt trading of its shares in December 2022. The company’s auditor, BDO, had also raised concerns about the complexity of its legacy accounting issues. Ince had announced multiple times that the audited results would be available soon, but failed to meet four self-imposed deadlines for their publication. 

Ince’s troubles were compounded by the negative publicity it received last year when some senior lawyers allegedly mistreated a 22-year-old waitress at a restaurant in Cardiff. The incident may have contributed to a loss of client confidence as well. The recent loss of a major client was the final nail in the coffin, and escalated their decision to enter administration. 

This a sad turn of events for Ince, which has a long and distinguished history. However, it is also a clear indicator of the legal sector’s challenges in today’s economic climate. The after effects of the pandemic have created significant disruption and uncertainty, and amounted to a large decline in demand for legal services. Law firms must adapt to these changing conditions and find new ways of operating if they are to remain competitive in the long term.

In a bid to strengthen its financial position, the company has been selling off various subsidiaries. Its Bristol-based personal injury law practice was sold for £1.3 million. However, this has not been sufficient to keep the firm afloat and its recovery seems unlikely. Don’t miss out on the chance to contact the distressed business’s appointed administrators. To discover more information about this situation and stay informed, visit Administration List today.