Rbg Share Discussion Threads

[euclid5] 21/5/2018 09:57

Perhaps it's the growth potential in litigation funding - plus they have raised an extra £10m in IPO & on the acquisition trail

[pireric] 20/5/2018 14:55

Doesn't seem massively cheap. What's normalised EBITDA here, £3.5m to be generous? Net off zero interest, and tax at 20% = £2.8m post tax profit, so on this market cap, around 34x profit?

Am I missing something? Even if £5.5m is normalised forward EBITDA, that's PTP of £4.4m. 21.5x profit

[euclid5] 18/5/2018 16:16

swiped from the Burford capital board:

Private equity and hedge funds have found a new way to get richer: Financing lawsuits in exchange for a cut of the winnings.

The investment funds, which have raised billions of dollars to funnel into promising cases, have become a rich source of cash for lawyers to acquire cases, buy advertising, recruit clients and underwrite litigation expenses. If the lawyers win, private equity backers can pocket up to six times their initial investments, amounting to as much as 50 percent of a settlement or trial verdict.

hxxps://www.houstonchronicle.com/business/article/Private-equity-s-latest-investment-Lawsuits-12924091.php

[euclid5] 15/5/2018 11:42

Good interview about CEO

Rosenblatt’s pioneering chief executive used to own Brands Hatch. She talks to Jonathan Rayner about doing law in a different way.

[martywidget] 14/5/2018 13:17

Insolvency specialist latest litigation funder to weigh up London float


Moulton-backed litigation funder Manolete Partners lines up £100m London listing


Legal firm Manolete Partners in £100m listing

[euclid5] 11/5/2018 14:36

27% free float or 21.6m shares only

So far as the Company is aware, apart from directors, the following persons are interested in 3% or more of the Company’s issued share capital.


Name No. of Ordinary Shares held Percentage of issued share capital

Ian Rosenblatt 16,911,214 21.1%
Miton Asset Management Ltd 12,630,000 15.8%
Fidelity Investments Inc. 5,260,000 6.6%
Blackrock Inc. 4,800,000 6.0%
Schroders plc 4,210,000 5.3%
Canaccord Genuity Group Inc. 2,900,000 3.6%

[euclid5] 10/5/2018 22:06

Admssion Doc

[quepassa] 10/5/2018 15:38

Great post. Thanks again.

Likewise must assimilate full prospectus.

Good heads-up on Vannin which is very interesting too. Great website. Grown rapidly



Good luck.

ALL IMO. DYOR.
QP

[jonwig] 10/5/2018 14:26

@ QueP - Burford won't touch a stand-alone case below about £50m value, so there's lots of pickings below that sum. Another funder is coming to market soon: Vannin Capital around £500m MCap.

PLC law firms can effectively become litigation funders by deferring fees. Gateley [GTLY] for example has a large receivables balance. They wouldn't reveal any more details when I asked at last year's AGM.

As for lock-ins and overhangs - whilst they can be a bit of a nuisance (you know Watkin Jones, of course) a decent company can generally get them away through a managed placing. Not something I'd be too bothered about.

I might buy some of these, but need to find time to look at the prospectus first.

[quepassa] 10/5/2018 12:19

Thanks jonwig. Appreciated.

that's what I was suspecting.

the relative size of Rosenblatt would be a limiting factor on how much they can fund on balance-sheet compared to massive Burford.

ALL IMO. DYOR.
QP

[jonwig] 10/5/2018 11:55

BUR uses both its own balance sheet and managed funds using outside investors (from which it takes a low basic but a high performance fee).

[quepassa] 10/5/2018 11:48

Interesting 9th May article on p6 of CityAM headed "Law firm could launch own litigation fund"

Article continues that " City law firm Rosenblatt confirmed yesterday that it could launch its own standalone fund to invest in litigation cases" in 18 months time


Anyone know if that is that the same business model as Burford, or do Burford fund litigation cases in-house/on balance-sheet?


ALL IMO. DYOR.
QP

[2350220] 09/5/2018 08:25

jonwig don't understand why you tell me that I'm complaining.
Merely stating a fact.

Re the five years for Burford to take off, that's a very good point jonwig.
At only £1k invested, this will be a small punt to just tuck away for the time being for me.

All the best,
John

[euclid5] 08/5/2018 21:42

They raised £43m in IPO

so an extra £10m in the bank

£22m to Debt & Tax Liabilities

£7m for In-house funding of litigation and working capital

£7m for for acquisitions of complementary businesses, investment in IT and AI systems.

£22m + £7m + £7m = £36m

Leaving an extra £7m

___ _____________________________________

The net proceeds of the Placing receivable by the Company are expected to be approximately:

£31.8 million and are intended for use as follows:

* approximately £20 million in respect of the Acquisition, of which approximately £18 million will be used for the repayment of loans owed by the Sellers and approximately £2 million of which will be used for the repayment of tax liabilities;

* approximately £5 million to £7 million for the in-house funding of litigation and working capital;
and

* approximately £5 million to £7 million for acquisitions of complementary businesses, investment in IT and AI systems.
_____________________________________________________

LONDON (Alliance News) - Law firm Rosenblatt Group PLC on Tuesday confirmed shares have started trading in London after it raised GBP43.0 million in an oversubscribed placing.

Rosenblatt placed 36.8 million new shares and 43.3 million existing shares at 95.00 pence each, giving it an approximate market capitalisation upon listing of GBP76.0 million.

Shares were trading at 106.00p each at midday on Tuesday.

[quepassa] 08/5/2018 20:17

concur. interesting sector.

[jonwig] 08/5/2018 18:28

@ John. 2350220 - it took Burford five years before its share price made much headway, and you complain about day one! Don't forget, IPOs are made for the benefit of the sellers, not a bargain for the buyers!

@ QuePassa - not often we agree; there are no 'no-brainer' investments, though there are plenty of no-brain investors. I'll follow this as the sector interests me, and how this company unfolds interests me as well.

[2350220] 08/5/2018 17:40

Mmm not an auspicious start as far as IPOs go.
I took a small £1k punt this morning, after reading an article in the Sunday Times financial section.
I completely missed out on the phenomenal rise of Burford Capital, and thought/hoped that this might go the same way eventually.
Who knows?
Anyway, for me at least, it's not the end of the World if it doesn't work out.
GLA,
John

[quepassa] 08/5/2018 17:17

No IPO is a no-brainer, especially an expensive one with limited free float, a 7% overhang in a year's time and with a founder who is not a spring chicken and where the lion's share of the proceeds have been use to repay debt leaving limited amounts to reinvest into the business.


But, heck, what's your view and reasoned opinion? can you please substantiate your views please as to why you think this is a "no-brainer" and what the investment case is? thank you.

all imo. dyor.
qp

[thomscm2] 08/5/2018 16:57

Don't hear anybody saying they have bought any shares. Does that mean you are all
here only to try and play down what should be a no brainer. Is there going to be a 2018 dividend?

[quepassa] 08/5/2018 11:51

One needs to bear in mind the age of the Senior Partner vis-a-vis the shareholding percentages

[jonwig] 08/5/2018 11:26

The CEO was interviewed on BBC R4 around 6:20 this morning. They appear to be focussed on litigation and are maybe quite aggressive in that field. They will also open a lit funding division so that clients won't need to go through third parties.

Lit Fin is very profitable for those companies which do it well (Burford Capital!) but one or two have gone bust by being over-ambitious. If they gear up with debt to finance this aspect, I'd be a bit wary.

[quepassa] 08/5/2018 11:14

thanks euclid. helpful about lock-in arrangements.

the 24/36 month lock-ins are acceptable perhaps.

the 5.8million Partner/fee-earner shares are perhaps an unwelcome 12 month overhang.

And my guess is that it is a good likelihood that some will sell after 12 months.



ALL IMO. DYOR.
QP

[euclid5] 08/5/2018 11:02

Think they raised £43m, so £12m more

[euclid5] 08/5/2018 10:50

The net proceeds of the Placing receivable by the Company are expected to be approximately

£31.8 million and are intended for use as follows:

* approximately £20 million in respect of the Acquisition, of which approximately £18 million will be used for the repayment of loans owed by the Sellers and approximately £2 million of which will be used for the repayment of tax liabilities;

* approximately £5 million to £7 million for the in-house funding of litigation and working capital;
and

* approximately £5 million to £7 million for acquisitions of complementary businesses,
investment in IT and AI systems.

16. Lock-In and Orderly Market Agreements

Pursuant to the terms of the Lock-in Deed made between the Selling Shareholder, the Company and Cenkos dated 2 May 2018, the Selling Shareholder, who holds, as at the date of this document, 25,500,000 Shares (representing 31.8 per cent. of the Enlarged Share Capital) has agreed for a period of 24 months from Admission that, subject to certain limited exceptions, he will not dispose of Shares (other than the Sale Shares and the Private Sale Shares) in which he has an interest (or enter into a transaction with the same economic effect), except with the prior written
consent of Cenkos.

In addition, the Selling Shareholder has agreed, for a further period of 24 months following the expiry of the initial 24 month period, not to trade any Shares except through Cenkos.

Pursuant to the terms of the Lock-in Deed made between Cascades, the Company and Cenkos dated 2 May 2018, Cascades, which holds, as at the date of this document, 11,410,000 Shares (representing 14.2 per cent. of the Enlarged Share Capital) has agreed for a period of 36 months from Admission that, subject to certain limited exceptions, it will not dispose of Shares held by it (or enter into a transaction with the same economic effect), except with the prior written consent of
Cenkos.

In addition, Cascades has agreed, for a further period of 12 months following the expiry of the initial 36 month period, not to trade any Shares except through Cenkos.

Pursuant to the terms of Fee-earner Subscription Agreements, certain Partners and other qualified lawyers of the Firm, who hold, in aggregate 5,800,000 Shares (representing 7.2 per cent. of the Enlarged Share Capital) have each agreed for a period of 12 months from Admission that, subject to certain limited exceptions, they will not dispose of any Shares held by them (or enter into a 21 transaction with the same economic effect), except with the prior written consent of Cenkos and
that, for a further period of 12 months

[quepassa] 08/5/2018 10:18

haven't got time at the mo' to wade through.

£20million to pay off debt, not a great use of proceeds