Listed firm Rosenblatt has reported a big jump in its profits as it emerged from the pandemic. Pre-tax profits in the year ending 31 December rose by 24.6% to £9.2 million on turnover up 87% to £47.2m, RBG Holdings plc reported today. It declared a dividend of 5p per share, up from 3p last year.
The legal services element of the business is now a combination of Rosenblatt and Memery Crystal, following the merger of the firms last year.
Legal services revenue alone increased 56% to £32.6m, roughly evenly split between the dispute resolution, corporate and real estate sectors.
Average revenue per fee earner was £347,000, down from £425,800 in 2020, which the firm said reflects its larger workforce. Total lockup is 109 days, compared with 99 a year ago.
The company has net debt of £14.2m, against a net cash position of £3.5m last year, reflecting the £10m facility taken out to fund the acquisition of Memery Crystal.
Litigation finance subsidiary Lionfish has successfully realised sales in five cases, with proceeds coming to £3.1m. It has a cash investment of £1.8m in 10 ongoing cases.
Nicola Foulston, group chief executive, said the business has a broad revenue base that reduces any dependence on a particular sector. 'Our financial performance in 2021 demonstrated once again the resilience of our business model,’ she said. While macro-economic conditions continue to be volatile, the new financial year has started as expected, ‘giving us cause to look forward to the coming year with optimism'.
RBG shares were unchanged today at 112.5p, down from a 2021 high of 160p last June.
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