Legal Services Act

City law firm Rosenblatt today became the fourth law firm to be admitted to AIM. The share placement, which was significantly oversubscribed, raised approximately £43m and gave the 19-partner firm, which is best known for its litigation work, a market capitalisation of £76m.

Profit per equity partner is down by 10%, although other performance indicators are up, according to an influential benchmarking report of SME law firms, published today. However, although PEP was down – from £120,000 last year to £108,000 – median fees per equity partner were up by an inflation-busting 5.4% to £539,000 last year.

Next week’s float of Rosenblatt will see the largest raise yet by a law firm after it revealed that it should raise £43m through the admission. The issue price will be 95p – coincidentally the same price on admission as the first listed firm, Gateley – and with 80m shares giving a market capitalisation of around £76m.

The aim of the government’s £1bn court modernisation programme is to cut annual spending on the courts by £250m every year from 2022, with thousands of jobs to go, it has emerged. Around 6,500 out of 16,500 court staff will lose their jobs by 2022 and the number of courts will shrink further from the existing figure of 350.

Listed firm Keystone Law has reassured investors that the Solicitors Regulation Authority has ended its investigation into a case in which a High Court judge accused it of conniving with clients to try and avoid a debt. Meanwhile, we also report on a series of high-level departures and arrivals at some of the country’s most high-profile ABSs.

Keystone Law – the self-styled ‘challenger’ law firm that listed on AIM late last year – has unveiled strong annual results today, pushing its share price ever higher. The firm reported a 24% increase in revenue to £32m, with profit before tax up 63% to £2.9m. Underlying EBITDA jumped 43% to £3.27m.

City law firm Rosenblatt is to become the fourth law firm to list on the London Stock Exchange’s AIM market, it announced today. The 19-partner commercial law firm, best known for its litigation work, is to be admitted on 8 May, joining Gateley, Gordon Dadds and Keystone Law.

The legal market has proven “inept” at responding to the needs of vulnerable consumers and its regulators are not coming up with a strategy to tackle the problem, the Legal Services Consumer Panel has said. The watchdog said it was also concerned that regulators were not thinking about consumer confusion sufficiently as they looked to make the market more flexible.

CILEx Regulation has moved to reassure the Lord Chief Justice over his concerns about its application to license alternative business structures. The regulator of chartered legal executives said that it would only look to regulate firms “that are relatively low risk and straightforward”.

One of the claimant solicitors working with the Ministry of Justice on the new small claims limit for personal injury cases says he is operating on the assumption that it will not happen until October 2019 at the earliest – six months later than the government’s target. He also warned that the reforms may unintentionally trigger a “have a go” culture among claimants.