Rosenblatt Group PLC Trading and Dividend Update (9084O)

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RNS Number : 9084O

Rosenblatt Group PLC

04 February 2019

4 February 2019

Rosenblatt Group plc

("Rosenblatt", the "Company" or the "Group")

Trading and Dividend Update

Rosenblatt Group plc (AIM: RBGP), the professional legal services company, is pleased to announce the following trading update ahead of the publication of its final results for the year ended 31 December 2018 on 30 April 2019.

The Group expects to report results in line with market expectations. The Company has continued to maintain high net margins on the work it undertakes, consistent with the levels the Group aims to deliver, and the highest of its peer group.

The Company's main practice areas, which are focused on contentious law, namely Dispute Resolution and Employment have continued to perform well. There has been an increase in the number of litigation cases that the Company is working on, with many being undertaken on a contingent basis, from which the Group will receive a high rate of return if successful. This growing demand for litigation reflects the uncertain economic environment, as businesses look to legal action to resolve issues.

As reported in the Company's interim results, the Corporate division, which is focused on commercial transactions, has been impacted by the cautious business environment in part caused by Brexit uncertainty. The Board believes that, as this uncertainty reduces during the year, there will be an increase in transactions, which have been delayed, including large-scale M&A transactions. The Group is well-positioned to benefit from this.

The Company's balance sheet remains strong and the Board has confidence in the outlook for the Group. As such, the Board announces today that Company intends to pay a dividend for the six months to 31 December 2018 of 2.8p per share. This sum, which is ahead of expectations set at the time of the Company's IPO, will be formally announced on 30 April 2019 upon publication of the Company's inaugural audited balance sheet and will be paid to shareholders on the register as at 10 May 2019.

In line with its stated strategy, the Board continues to assess potential acquisition opportunities that meet its strategic and valuation criteria. During the period, the number of acquisition or lateral hire opportunities available reflected the cautious business environment referred to above. The Board has remained disciplined and will only pursue transactions that can demonstrate clear benefits for shareholders. With the UK experiencing a fast-changing economic backdrop, the Board believes that the Group is well placed to move quickly and capitalise on opportunities as and when they arise this year.

Nicola Foulston, CEO of Rosenblatt, said: "Rosenblatt has performed well since our flotation last year, with revenue growing and net margins remaining high. I am pleased to announce our first interim dividend to shareholders reflecting the strength of the Group and this will remain a key metric for us. Our main practice areas, which are centred on Dispute Resolution, continue to grow and we have been focused on implementing our agreed strategy. We expect to take part in the consolidation of the industry as and when acquisitions meet our strategic and valuation criteria. 2019 will be our first full year as a public company and we look forward to delivering growth for shareholders."

Enquiries:

 
 Rosenblatt Group plc                            Via Newgate Communications 
  Nicola Foulston, CEO 
 Cenkos Securities plc (Nominated Adviser       Tel: [phone] 
  and Broker) 
 Stephen Keys/Nick Wells 
 Newgate Communications (for media enquiries)   Tel: [phone] 
  Robin Tozer/Fiona Norman                       6880; [e-mail] 
 

About Rosenblatt Group plc

Rosenblatt Group plc is a professional legal services company, which includes one of the UK's leading dispute resolution practices. It provides a range of legal services to its diversified client base, which includes companies, banks, entrepreneurs and individuals. Complementing this is the Group's increasingly international footprint, advising on complex cross-jurisdictional cases in China, Israel, America and India. Rosenblatt's practice areas include dispute resolution, corporate, banking and finance, insolvency and financial restructuring, construction and projects, employment, financial services, IP/technology/media, real estate, regulatory and tax resolution.

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February 04, 2019 02:00 ET (07:00 GMT)