1st Aug 2019 14:32
(Alliance News) - Rosenblatt Group PLC said Thursday it is performing well, with year-on-year growth at "high" net margins.
The legal services firm said it expects its full-year results to be in line with market expectations.
In 2018, Rosenblatt's first year as a listed company, revenue rose to GBP12.5 million from GBP10.5 million in 2017, but pretax profit fell 6.3% to GBP3.0 million from GBP3.2 million.
The company said its divisional performance in 2019 has continued from the trends seen in 2018, where its Dispute Resolution and Employment both did well. The two units make up the majority of revenue for Rosenblatt.
"The group's main practice areas, which are focused on contentious law, namely Dispute Resolution and Employment, have continued to perform well. The number of litigation cases that the group is working on is growing, especially those undertaken on a contingent basis, from which the group can receive a high rate of return if successful," Rosenblatt said.
Rosenblatt said its Corporate division, which focuses on commercial transactions, has suffered from the "cautious business environment" caused by Brexit uncertainty.
"When this uncertainty clears, the indications are that there will be an increase in the volume of transactions, which have been delayed, including M&A from which the group will benefit," Rosenblatt added.
Rosenblatt continued: "The group continues to make progress in terms of establishing its litigation funding arm. There are currently four cases under consideration for funding and seven in progress. The group has started to successfully realise revenues from the sale of partial participation rights in its litigation assets to third parties as part of the board's policy of generating returns from these assets while limiting its risk exposure to individual cases."
The company declared an interim dividend of 2.0 pence per share.
Shares in Rosenblatt were down 6.4% in London on Thursday at 95.00 pence each.
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