Rosenblatt Group plc (AIM:RBGP), the professional legal services company, is pleased to announce its audited preliminary results for the period ended 31 December 2018.
Financial Highlights:
- Revenue of £12.5 million, up 19% (2017: £10.5 million*)
- Adjusted EBITDA of £4.3million, up 18% (2017: £3.6 million*),
- Profit before tax of £3.0 million (2017: £3.2million*)
- Profit after tax of £2.3 million, representing 18.4% of revenue
- Strong balance sheet with net assets of £35 million and no debt
- Cash and cash equivalents of £13.4 million
- First interim dividend for the eight months to 31 December 2018 of 2.8 pence per share will be paid to shareholders on the register as at 10 May 2019
* To provide a relative comparison on trading, reference is made to 8/12 of the income statement (i.e. 8 months of trading) from the prior year of Rosenblatt Solicitors as stated in the Historic Financial Information (HFI) , the business and certain of the assets of which were acquired by the Company on 8 May 2018 by the Company, that was incorporated on the 6 February 2018.
Operational Highlights:
- Group was successfully admitted to AIM on 8 May 2018
- The adjusted EBITDA margin of the business was 34%, driven in part by the strong performance in the Company’s Litigation practice
- Annualised revenue per fee-earner[1] was £400,000
- In November 2018, established a separate arm to finance clients’ external litigation costs. Currently have five cases under consideration for funding
Nicola Foulston, CEO, Rosenblatt Group plc, commented: “This has been an excellent start for Rosenblatt as a public company with annualised revenue and profit growing, as well as a strong balance sheet and no debt. As a business, we also focus on margin and productivity, which we believe differentiates us from our peers. We have delivered an adjusted EBITDA margin of 34% on the work we undertake, and our annualised revenue per fee earner is £400,000. We believe these metrics to be leading among our peers in the sector.
“At the time of flotation, we identified litigation funding as an area where we see considerable opportunity for growth and have established a separate arm to finance our clients’ external litigation costs. Rosenblatt is the first law firm of its kind to offer such finance to its clients as well as to other law firms and we believe offers increased opportunities to monetise cases.
“In the year ahead, we expect to see continued strong organic growth driven by our dispute resolution practice. This growth will be despite the challenging economic environment caused by Brexit uncertainty, which has seen the pipeline of routine corporate and commercial transactions reduced. In addition to organic growth, we continue to see many M&A opportunities in the sector. We are committed to pursuing the right opportunities, which meet our investment criteria and provide shareholders with an appropriate return on investment.”