UK's Listed Firms Reel Amid 'Torrid' Market Conditions
DWF's market value fell by 17% on Wednesday while three other law firms posted their lowest share price ever.
March 19, 2020 at 07:36 AM
3 minute read
Share prices across the U.K.'s six listed law firms have tumbled by an average of nearly 30% since the start of the month, amid growing market turbulence brought on by the coronavirus pandemic.
DWF, Ince and Rosenblatt all posted their lowest ever share prices since their respective listings, with DWF alone seeing over 17% of its market value wiped in a single day of trading on Wednesday.
Elsewhere, Gateley and Keystone also posted significant drops, with both firms down over 20% on the start of the week.
Commenting on the recent share price falls, Keysone CEO James Knight told Law.com International: "This is a torrid time for Keystone's investors but there are two things to bear mind," he said.
"Firstly, in November 2019 the shares were priced at 160 pence after which the shares experienced a meteoric rise until the onset of this Corona panic. Although the current rate is way off its high, many of our investors have still done well.
"Secondly, Keystone's cashflow-friendly business model and dispersed working structures mean we are well-placed to ride out this terrible storm and to continue to flourish once the carnage has abated. "
Knights Group, which so far has seen the smallest fall in its share price of the six firms, is also down 28% on its year-high in mid-February.
Many of the firms had only recently posted all-time high share prices. In February, DWF posted a record-making 142.4p shortly after announcing plans to acquire managed services business Mindcrest, but has since dropped by nearly 40% to less than 90p..
Ince had already seen its share price fall considerably at the start of the year after announcing plans to raise £12 million as part of an accelerated book build.
The share price drops reflect a broader spiral in the capital markets. The AIM all-share index, of which all firms but DWF are members, has posted a fall of 20% since the start of the week and 32% compared to the start of the month.
Meanwhile the FTSE All-share index is down 7% since Monday and 25% compared to the beginning of March.
A spokesperson for Rosenblatt, which has seen its share price fall by 29% since the start of the month, commented: "RBGP shares are performing in line with the market at this difficult time. Our business remains in a strong position as noted in our recent trading update."
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