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When going public does not work out
THE high-profile problems suffered by Vantis as a listed entity could deter other professional service companies from joining the public market, experts warned yesterday.
Vantis’ share price has been hammered in the past year as doubts over its largest project liquidating Sir Allen Stanford’s assets, reputational issues to do with an HMRC probe into two employees and financing difficulties have scared off investors.
Richard Turnor at Maurice Turnor Gardner said: “Once you have got widows and orphans investing in your stock you get a high level of disclosure. If a company’s rumoured to be in turmoil you have the risk the share price will be damaged.”
The problems come as some law firms consider external funds.