LONDON, UK: The Ince Group plc (AIM: INCE), announced the disposal of the trade and assets of CW Energy LLP (CWE), a specialist tax consultancy business within the Group, back to the original vendors, Phil Greatrex and Paul Rogerson (through PPJ Oiltax Partners LLP).

The Ince Group provides legal, accounting, financial services, consulting and pension advice services.

Whilst there will be no consideration received by the Company from the disposal, Ince will no longer be liable to pay the original vendors £2.9m of deferred consideration and this amount will be removed from the Group’s balance sheet on completion of the disposal.

This disposal forms part of the board’s strategy of focusing on: i) developing the Group’s core legal services practice; ii) disposing of non-aligned businesses within the Group; and iii) de-leveraging the Group’s balance sheet. The disposal of CWE is the Group’s first disposal since the completion of its recent fundraise and forms part of the cost rationalisation programme referred to in the share placing circular published in July.

CWE, which has been part of the Group since November 2017, provides specialist taxation services to companies in the energy sector, primarily in the oil and gas industry. In the financial year ended 31 March 2021, CW Energy LLP delivered audited gross revenue of £2.5m and its audited profit available to the Group was £0.3m (after deducting Group charges and deferred consideration earned in that period). As at 31 March 2021, CW Energy LLP’s audited net assets were £1.2 million.

Opportunities to expand CW Energy LLP’s revenue base within the Group have been explored but the board has concluded that it will not be possible to deliver significant revenue increases or synergies, and savings in CW Energy LLP’s underlying cost base have not been identified.

The Group’s financial statements for the year ended 31 March 2022 will include a full year’s net profit from CW Energy LLP. The disposal of CW Energy LLP has been approved by the Group’s principal funding bank under the terms of its lending arrangements.

Donald Brown, Chief Executive Officer of The Ince Group plc, said: “The disposal of CW Energy LLP is the first move in aligning our businesses to ensure that we can develop our core legal services practices together with clear cross-selling opportunities within the wider Group.”