Rosenblatt Group plc: AIM Admission & Fist Day of Dealings
Rosenblatt Group plc, an independent city law firm has today listed on AIM in a significantly oversubscribed fundraising, raising £43m.
The new issue raised c. £43m before expenses, via the issue of 36,842,106 new Ordinary Shares and 43,250,000 existing Ordinary Shares, giving Rosenblatt a market cap of roughly £76m at 95p per share. Cenkos Securities plc is the Nomad and Broker.
The Directors believe that listing on AIM will further raise its profile and provide investment for funding its future growth strategy which includes; the in-house funding of litigation, enabling access to capital, providing an avenue for strategic acquisitions and retaining and attracting key staff.
Rosenblatt provides a broad array of legal services to its diversified client base. Amongst Rosenblatt’s clients are corporates, banks, entrepreneurs and individuals from around the globe, for whom Rosenblatt is able to advise on complex cross-jurisdictional cases in America China, India and Israel.
The Group’s practice areas cover dispute resolution, corporate, banking and finance, construction and projects, employment, financial services, IP/technology/media, real estate, regulation and tax.
Rosenblatt is led by CEO, Nicola Foulston, who was appointed in 2016. The leadership of Rosenblatt is unique in that senior management have extensive business experience as opposed to other law firms which are run byare run by senior partners with little or no commercial management experience. This management team achieved a strong financial performance in the last financial year to the year ending 31 December 2017 with revenues of c.£15.9m and EBITDA of c. £5.5m representing CAGR of 3% and 27.6% respectively since 2015.
The Board intend to pursue a dividend policy following Admission and expects to payout at least 60% of retained earnings in any financial year by way of dividend. The intention is to pay out the first dividend (relating to the period from May to September 2018) before the end of 2018. The Board expects to deliver a progressive dividend policy over time.
Nicola Foulston, CEO, said of today’s IPO:
“This is an exciting day for Rosenblatt, our staff and clients. Our admission to AIM will provide us with a significant opportunity to create a profitable and growing business to capitalise on the changes seen in the legal marketplace in the UK in recent years driven by regulatory reform and new technology. We want to use the funds raised to take advantage of what is a highly fragmented market to engage in consolidation as well as fund more litigation ‘in-house’.
“Our commercial approach and focus on dispute resolution mean we are well positioned to capitalise on opportunities. Many law firms continue to be managed by senior partners, who often have little or no commercial management experience. Our structure, combined with our admission to AIM, will help us to be more flexible, produce higher margins than the traditional law firms and allow equity participation for all staff enabling us to attract talent.
“Rosenblatt has a strong reputation and is one of the top litigation practices in the capital. The UK will remain one of the world’s top markets for legal services, with London the preferred location for settlement of disputes involving international companies. We have had one of the highest success rates from Alternative Billing Arrangements in the industry, winning 84% of litigation cases involving Rosenblatt heard in the Chancery Division over the last six years
“Our proven track record, strong client relationships, experienced and entrepreneurial management team, and strategy for growth means we are confident we can deliver significant value for shareholders over the long-term.”
ROSENBLATT INVESTORS – VIDEO OVERVIEW
We filmed Nicola Foulston who gave a very useful overview of Rosenblatt Group Plc for investors, and it is available below: