30 September 2022

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information, as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.

The Ince Group plc

("Ince", the "Company" or "Group")

Trading Update

The Ince Group plc (AIM: Ince), which provides legal, financial services, consulting, and pension advice services, announces a trading update ahead of the Company's annual general meeting today.

UK & EMEA

In the UK the new management team has continued to refocus the performance metrics of the business and, in particular, to overhaul cash collection procedures. On 12 September 2022, we announced the appointment of Jill Watt to the senior management team as the UK law firm's new head of finance and administration ("HOFA"). Jill has already made significant improvements to our outstanding fee collections, which in turn assist our cash position as we make positive inroads into our £11.8m outstanding debtor book in the UK.

On 15 September 2022 we announced the successful disposal of CW Energy LLP which removed £2.9m of deferred consideration from the Group's balance sheet.

In the period to August 2022 the UK continued to experience difficult trading conditions, but revenues have continued to recover to near 2021 levels. The UK forecast turnover for the retained business remains on track. Notwithstanding increasing activity levels, the Group retains significant productive capacity given its staff retention policy through the Covid-19 pandemic.

The UK legal business will consolidate its various teams and refocus on sectors/divisions to facilitate increased utilisation and cross selling. Management in the UK will now be assisted by the newly established Executive Management Committee comprising seven Partners and the UK HOFA.

Our practices across EMEA have continued to make progress and are now very much aligned to our core shipping, corporate and insurance business, although our German practice is still in a period of turnaround. A plan is being developed to restructure our European business to align more specifically to our core legal business. This may include an accounting deconsolidation of part of our German business following a review of its local regulatory structure, although that business will continue to work closely with the Group as part of our future strategy and in order to maintain a strong presence in that market, and we expect to be able to provide a further update on this in the annual report.

Asia

The Covid-19 pandemic has continued to have a negative impact on our Asia business and the travel restrictions continue to hamper cash collection and the reduction of cash lock up. However, the team have continued to develop business working with our high quality clients, especially in our core sectors, and the business retains a strong cash position in China. Restrictions on travel are beginning to lift, which will ease pressures on direct engagement by the Group's management with the local teams and will also allow those local teams easier access to their clients to begin the process of reducing built up working capital.

In Singapore, trading conditions have been difficult. The Singapore-based Incisive business, which was merged into the Group in May 2020, may also be deconsolidated in the Group's accounts as a result of having clarified its local regulatory position, although that business will continue to work closely with the Group as part of our future strategy and in order to maintain a strong presence in that market, and we expect to be able to provide a further update on this in the annual report.

Cash position

The Group currently has cash of approximately £3.5m and net debt of approximately £15m. The Group's third party debt funders remain supportive of the Group and the new management's strategy for cost reductions, rationalisations and a more sector and specialism focussed strategic approach to future growth.

Current trading update

An analysis of recent performance indicates that the business is on track to have increased trading activity over the full year to 31 March 2023. However, results for the six months to 30 September 2022 are not expected to improve on the same period in the prior year on a like-for-like* basis.

The business is continuing to make positive progress under the new management and the previously announced cost rationalisation exercise remains on track. An update on the extent of annualised savings achieved through this exercise will be provided in the upcoming annual report.

A settlement was reached with the former directors of the Group and/or subsidiaries, Adrian Biles and John Biles, with minimal cash payments being required to achieve this, as outlined in our statement released on 28 September 2022.

Overall, revenues for the year ended 31 March 2022, are expected to be approximately £97m as indicated in the announcement of 23 May 2022, subject to audit and the accounting treatment which may arise from potential accounting deconsolidations of Singapore and Germany referred to above.

The release of the audited annual statements for the year ended 31 March 2022 has been delayed until November 2022, as announced on 6 September 2022.

Donald Brown, Chief Executive Officer of the Ince Group plc, said: "In my short time as CEO I am delighted with the progress we have made as a team. The Group continues to undergo a period of renewal supported by an excellent team of partners and clients. Together we are committed to providing a strong platform for future success, most of the components for which are already in place. I look forward to providing a more fulsome update at the time of the publication of our Annual Report."

* Like-for-like revenue refers to the Group performance excluding results for the now disposed of CW Energy LLP business and the potential accounting deconsolidations of the Germany and Singapore businesses.

Enquiries

About The Ince Group plc

The Ince Group is a dynamic international legal and professional services business with offices in nine countries across Europe, Asia and the Middle East. With over 700 people, The Ince Group delivers legal advice, strategic guidance and business solutions to clients ranging from the world's oldest and biggest businesses operating across numerous industries to ultra-high net worth individuals. Through its entrepreneurial culture and "one firm" approach, the business offers its clients over 150 years of experience, insight and relationships. The Group is driven by a unique team of passionate people whose broad expertise and deep sector specialisms provide their clients with solutions to all their complex legal and strategic needs.