Listed City firm Rosenblatt is to set up a litigation funding subsidiary, the business revealed today, announcing strong maiden interim trading figures. Unaudited results for the eight weeks ending 30 June showed pre-tax profits up 18.8% to £0.95m on revenue up 15.4% to £3m. 

Rosenblatt Group plc listed on the alternative investment market of the London Stock Exchange in May. Its £43m initial public offering is the largest by a law firm to date. 

Nicola Foulston, chief executive, Rosenblatt

Nicola Foulston

Nicola Foulston, chief executive, Rosenblatt

Chief executive Nicola Foulston said today that the results showed that the practice has made a strong start to life as a public company. ’We are progressing with the strategy we set out at IPO to deliver long-term value to shareholders. This includes using the proceeds to underwrite more of Rosenblatt’s litigation portfolio by increasing the number of cases we are undertaking on either a conditional fee or damages-based agreement basis.’

The new subsidiary, Rosenblatt Litigation Funding Ltd, will be set up with £2m of the proceeds of the float, Foulston said. ’This will give us the capability to take on more cases where there is a third-party cost element, thereby retaining the funding margin otherwise paid to an external funder.’ The subsidiary will also syndicate cases across other lenders such as hedge funds, Foulston said. Its first case will be a damages-based agreement arbitration. 

’Looking ahead, the market for legal services is stable, despite a cautious UK business environment, with strong demand for litigation services, dispute resolution and third-party funding. The group remains confident that this will continue to be the case, regardless of any uncertainty caused by Brexit.’

Rosenblatt shares opened 8.1% down at 96p.