Abbey Protection Floats On AIM

by Stewart Douglas

Story link: Abbey Protection Floats On AIM

Professional insurance specialist Abbey Protection plc has today begun trading on the Alternative Investment Market (AIM), in a move that will see its shares openly traded to ensure steady cash flow and improve capitalisation capacity at the firm, with a view to funding long term growth projects.

The group focus mainly on the provision of legal and professional insurance to professional consultancy businesses - from lawyers to accountants to business consultants of medium sized businesses. Its floatation as of this morning will see it openly traded to provide ongoing capital value to the company in recognition of its ongoing expansion process.

Amongst the company’s main services is protection against legal costs arising from court action in connection with tax avoidance programmes, which can often result in expensive litigation before determining whether or not a particular programme is legal.

In relation to smaller and medium sized businesses, this kind of litigation can be particularly costly, thus Abbey seeks to provide insurance cover for this kind of situation, which has proven increasingly popular amongst its clients in recent years.

Trading in the company’s securities began this morning at 8.00am on the AIM division of the London Stock Exchange, which provides a forum for the trade of securities of smaller or classically more risky enterprises than the regular open London Stock Exchange, and is less regulated than the main exchange.

With the listing on AIM will come further regulation of the way in which the company is run and managed, which will inevitably carry an increasing administrative burden. However it is thought that the potential to raise capital more readily will cancel out any detrimental effect on efficiency brought about by increased regulation.

Established over 15 years ago, Abbey Protection fits within the Abbey management structure as a complimentary service to its other associated tax planning divisions, legal protection services and litigation services.