In the midst of financial turmoil, Simpson Millar’s acquisition of Novum Law signals a stabilising move for clients and staff alike.
- Simpson Millar, with a presence in Leeds, finalises acquisition of Novum Law, a claims firm in the south west.
- The acquisition involves taking over Novum Law’s assets and trading name amid financial reassurance needs.
- Novum Law faced significant financial challenges, including a winding-up petition and an £11m turnover decrease.
- Commitment to seamless client transition and quality service upheld by Simpson Millar amidst acquisition.
Simpson Millar, a national practice known for its robust presence in Leeds, has strategically acquired Novum Law, a claims firm operating across seven offices in the south west. This significant acquisition marks an effort by Simpson Millar to strengthen its offering amidst turbulent financial times, particularly concerning for Novum Law, which has faced considerable hardship.
Finalised on a Tuesday, the acquisition involved the complete transfer of assets and trading names from Novum Law to Simpson Millar. Spearheaded by the administrators Stephen Katz and Asher Miller of Begbies Traynor Group, this deal aims to provide stability to Novum Law’s operations, which have been marred by financial issues.
Greg Cox, Chief Executive of Simpson Millar, expressed enthusiasm about the transition, noting, “We are delighted to welcome many new clients and colleagues to Simpson Millar.” He highlighted the seamless transition his team aims for, despite the wider sector challenges due to fixed costs and court delays.
Despite Novum Law’s recognition by Chambers and Partners as a leading personal injury firm in the south west, its recent operations have been severely impacted by financial woes. Court documents disclose a winding-up petition against its parent company, Nhlex Limited, filed by HM Revenue & Customs, underscoring the severity of its financial predicament.
Novum Law reported a sharp downturn, with financial records indicating a post-tax loss of £1 million and an 11% drop in turnover for the year ending April 2022. These financial distress signals have raised concerns about staff retention, case progression, and competitive pressures in the industry.
In response, Novum Law entered into an agreed period of forbearance with its secured creditors, negotiating extended debt repayments particularly with HMRC. Doorway Capital, owning Simpson Millar, emerged as a crucial secured creditor during these negotiations.
The acquisition by Simpson Millar is characterised by a commitment to uphold the quality of legal services that Novum Law’s clients expect. Emphasis has been placed on the integration of Novum’s staff into Simpson Millar to maintain continuity and professionalism in service delivery.
This acquisition by Simpson Millar represents a strategic move to ensure client stability and service continuity amid challenges faced by Novum Law.
