Why the London Stock Exchange is no longer a home for the legal sector
A scandal broke out at one of the remaining listed legal groups last week resulting in its share price dropping to its lowest ever level.
Now, it really is the time to draw the line in the sand – the London Stock Exchange is not the place for the legal sector.
RBG Holding was all over the headlines last week after the founder Ian Rosenblatt had to hit back at the board by calling them liars. This came after the group ousted him in an RNS update, along with a range of allegations against him. Both parties have since reached a two-week truce as of last Friday.
RBG Holding, which is made up of two law firms: dispute-focused Rosenblatt and commercial advice specialist Memery Crystal, listed on the London Stock Exchange in 2018.
At its highest point in June 2021, its share price was 148p, but this week, the price is well below 2p.
Back in 2023, the Ince Group, headed by Adrian Biles, was suspended from trading as it missed deadline after deadline for publishing its accounts.
The group eventually fell into administration in April, and since, under its new owners Axiom Ince, has been involved in a scandal over alleged misappropriation of £64m of client money.
While another legal listed business DWF Group was taken private by London-based Inflexion Private Equity Partners in a £342m deal in 2023.
Investors are “no longer interested”
There are four legal groups left on the London Stock Exchange; Keystone Law, Gateley, Knights Group and RBG Holding.
According to data supplied by AJ Bell, on a five year performance review of each, it revealed that RBG’s stock is down by 99 per cent, Knights down by 68 per cent, Gateley down by 37 per cent and Keystone Law down by three per cent.
Speaking to City AM, Dan Coatsworth, investment analyst at AJ Bell said: “The quoted legal sector has been a big disappointment. Investors have lost money and they’re no longer interested.”
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Why the London Stock Exchange is no longer a home for the legal sector
