• Hobs Legal Docs in acquisition
London based Hobs Legal Docs, part of Hobs Reprographics Group, has acquired specialist litigation support company Datalex. Hobs Legal Docs has offices in London and Manchester servicing clients throughout the UK and abroad. Datalex was founded six years ago by Philip Demetriou.
• E-Learning company publishes results
The board of Intellego, an AIM traded e-learning & compliance courseware business, has published its final audited results for the year ended 31 March 2009. Highlights include:
– Revenues increased by 40% to £2.34 million (2008: £1.67 million).
– Losses grew to £502,608 (2008: £408,118).
– Losses include non-recurring annual costs and those related to the previously announced restructuring, totaling £423,914.
– Potential for recurring revenues 2009/10 to more than double.
– Acquisition and successful integration of Zenosis Ltd and Professional Development Partnership Ltd.
– Post balance sheet placing and loan raised £370,000; agreement with HMRC to repay £460,000 by instalment. The resulting £830,000 goes a long way to improve the Company’s financial position.
Commenting on these results chairman Angus Forrest said “The past two years have been a transformational period for the Company. It has achieved its first stated objective of increased scale through a combination of strong organic growth and acquisition. This provides a platform for further expansion and means we can concentrate on achieving profitability. In the period the Company refocused its sales mix – growing publishing and services which now provide our main revenue streams.” For full results see attached PDF
• Huron Consulting Group hit by shares scandal
Reuters report that the Chicago-based Huron Consulting Group 'which helps clients dodge accounting pitfalls and
stay on the right side of the law, faced its own corporate
meltdown on Monday sparked by a bookkeeping scandal that wiped
nearly $660 million from its market value since Friday.'
Huron, which also operates in the litigation support/e-discovery consultancy area, was formed in 2002 by 25 partners of the old Arthur Andersen business, said on Friday
that its entire top management team would leave the company and
that it would restate more than three years of results. The company's earnings for that period would be slashed
almost in half because it had misreported costs related to
acquisitions. Huron stock closed down 69.13 percent at $13.69 on Nasdaq.
Huron's audit committee discovered shareholders of four
businesses that Huron acquired between 2005 and 2007
redistributed portions of their acquisition-related payments
among themselves and to certain Huron employees who were not
identified. Huron has already replaced chairman & chief executive Gary Holdren, as well as CFOr Gary Burge. The company also said chief accounting officer Wayne Lipski will be leaving the company.
The restatements raise costs for 2006-2008 and for the
first quarter of this year. As a result aggregate net profit
for that period dropped to just $63 million from $120 million. Huron also cut its 2009 revenue outlook to a range of $650
million to $680 million from its prior view of $730 million to
Two law firms are investigating potential shareholder
claims against Huron over possible securities violations, while
analysts are already raising questions about the company's ability to
survive. Comments made include “we believe
there are legitimate worries about Huron being a going concern” and “the damage to
Huron's reputation will likely be significant.”