Listing law firms was an exciting – and profitable – game for some time but the pandemic has seen millions of pounds disappear from the value of the UK listed firms, according to recent research.
The Law Gazette reports that Like-for-like comparisons to six months ago – when coronavirus was on the eve of locking down the UK – shows that five of the most prominent public firms have lost between 12 and 55 per cent of their market value.
The biggest drop came from DWF, which showed a drop in market capitalisation from £427 million six months ago to £191 million. DWF has gone through a management overhaul and redundancy consultation in the past six months.
However against the trend Knights plc increased its market cap by 22 per cent with shares bouncing back rapidly from the immediate hit in March and April. The company is now worth £384 million, an increase of over 20 per cent on the February price.
Shares in Gateley, Keystone, Ince, Rosenblatt and DWF are all lower than they were at the start of March. Some had already dropped in the midst of international disruption, but in almost all cases they plummeted in March before stabilising and starting to recover over the summer.
According to the London Stock Exchange’s latest market cap figures, Gateley’s value is down 20k per cent to £160 million, Keystone is down 14 per cent to £138 million, Ince has dropped 39% per cent to £16.59 million, and Rosenblatt is down 12.5 per cent to £63 million.
Mike Allen, head of research at Zeus Capital, which advises on flotations, said it was difficult to compare listed law firms because of the varied nature of their models, but most have been resilient and may even be able to save costs through more home working.
‘We have not had any profit warnings due to Covid although it has probably caused a bit of pressure in commercial real estate and exposure to that,’ he said. ‘We have economic uncertainty at the moment but I would still expect some legal businesses to join the market in the coming years.’
- Linklaters Set To Join The Ranks Of The Female Law Firm LeadersThree candidates left in the race to succeed Charlie Jacobs as Linklaters’ senior partner It looks like Magic Circle law firm Linklaters […] More
- PageOne Legal eDiscovery Service Celebrate 15 years’ BusinessNASHVILLE, Tenn., Feb. 22, 2021 Powered by LawFuel — Page One Legal, an eDiscovery services and litigation support firm, celebrates an important milestone anniversary. February 2021 officially […] More
- The Legal 500 – Who Are 2021 New Zealand Power Law Firms on The Legal 500 Rankings?Watch For LawFuel’s Power List 2021 – Arriving Soon The Legal 500 is regarded by many as one of the UK’s top […] More
- Big Law Firm ‘Pandemic Profits’ Continue With Strong GrowthThe Pandemic does not appear to have harmed too many Big Law Firms Big Law continues to report large ‘pandemic profit’ growth, […] More
- Power Lawyer: Simon Watt Named Climate Change Law LeaderBell Gully partner Simon Watt has been reaffirmed as New Zealand’s leading climate change lawyer, following the release of the internationally respected Chambers Global directory. […] More
- Which Legal Software is Best? 9 Top Legal Software Tools Law Firms Need to Know About in 2021Searching for the best legal software is never easy. But we’ve taken a look at 9 key legal software tools that can […] More
- Have Hackers Hacked Jones Day, The Privacy Law Experts?It’s an embarrassment for the privacy law firm if true. And we think it may be. A hacker claims to have stolen […] More