Simpson Millar, a national practice with a presence in Leeds, has acquired Novum Law, a claims firm with seven offices across the south west.
The deal, finalised on Tuesday, involved Simpson Millar taking over the assets and trading name of Novum Law.
Simpson Millar completed the acquisition from the Novum Law administrators, Stephen Katz and Asher Miller of Begbies Traynor Group.
Simpson Millar’s chief executive, Greg Cox, stated;
“We are delighted to welcome many new clients and colleagues to Simpson Millar. We are also pleased to have been able to help support the closure of the Novum practice. My colleagues in our injury practice area are working hard to communicate the changes and ensure that the transition for clients is seamless. We know that although some firms in our part of the sector are thriving, many others are facing challenges from the impact of change like fixed costs, court delays and similar.’
Legal guide Chambers and Partners recognised Novum Law as one of the top PI firms in the south west. However, recent financial difficulties have marred its operations. Court documents revealed a winding-up petition filed against its parent company, Nhlex Limited, by HM revenue & customs. The firm faced challenges highlighted in auditors’ reports, including breaches of financial covenants and reliance on financial support.
Financial records show a significant downturn in performance, with a post-tax loss of £1m and an 11% decrease in turnover for the year ending April 2022. Concerned parties raised issues regarding risks such as staff retention, case progression, and industry competition.
Following the challenging financial period, Novum Law entered a period of agreed forbearance with secured creditors and negotiated extended debt repayment terms with HMRC. Specialist law firm funder Doorway Capital, the owner of Simpson Millar, played a significant role as a major secured creditor.
Simpson Millar announced the acquisition with a commitment to maintaining the quality and professionalism expected by Novum Law clients. They assured clients of uninterrupted service and emphasised the integration of Novum Law team members into the Simpson Millar team.
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