Rbg Share Discussion Threads

[petewy] 28/1/2022 18:16

hence the rise.

[maddox] 28/1/2022 17:53

As predicted Simon Thompson of Investors Chronicle has just released a bullish assessment and outlook. He's reiterated his BUY and 175p share price target.



MMs moved the price up from 123p to 128.5p just prior to the close.

[scubadiverr] 27/1/2022 20:59

Just got chance to see the presentation. I know you shouldn't fall in love with a share, but I'm finding it difficult not too. Well done Nicky and Robert

[se81] 27/1/2022 12:19

From singer this morning

Today’s positive year end update prompts a 10% upgrade to our FY21 EBITDA forecast. RBG Legal Services is performing well under two highly regarded brands (Rosenblatt and Memery Crystal), whilst LionFish and Convex Capital have attractive prospects for FY22. The shares are trading on a current year P/E rating of just 10x, a material discount to peers. We consider this wholly anomalous, given RBG’s trading momentum, clear growth ambitions and attractive dividend yield (6.0% for FY22). Our 160p Target Price suggests 50%+ TSR with the prospect of further outperformance to come, both organic and via accretive M&A. BUY.

Positive FY21 year end updateRBG has delivered a strong final quarter, building on the momentum reported in H1. It has been a transformational period for the Group, which has seen the strategically important and accretive Memery Crystal acquisition double legal services revenues, whilst Convex has capitalised on buoyant market conditions. Adjusted EBITDA is now expected to be 10% ahead of previous expectations, which filters through to 14%/13% upgrades to FY21 PBT and EPS. A second interim dividend has been declared (3p per share), reflecting the strong performance and confidence in the outlook. This brings the total dividend in respect of FY21 to 5p per share (ahead of our previous 4.8p forecast).

RBG Legal Services – performing well, Memery Crystal largely integratedFollowing the completion of the Memery Crystal acquisition in May 2021, a new legal services corporate entity has been formed – RBG Legal Services Ltd – with two client facing brands of Rosenblatt (for contentious legal services) and Memery Crystal (non-contentious). The business has performed well, the integration of the two firms’ support functions is largely complete, and the benefits are already being seen in terms of collaboration and enhanced client offering. The businesses will move to a new practise management software system in 2022. A sustained improvement in net margins to 29% has already been delivered and this is expected to rise to 35% over the medium term.

LionFish and Convex Capital – well positioned at the start of FY22Within litigation finance, the Group expects FY22 to be the year in which returns begin to be generated on LionFish’s litigation investments. Convex Capital, meanwhile, had a very strong FY21, completing 14 deals and generating revenue of £9.4m (2020: 2 deals, revenue of £1.6m). Momentum carried forward from the stellar H1 performance (8 deals, £5m revenue) into H2. At the start of the new year, Convex Capital has a strong pipeline of 22 deals at various stages of completion.

Clear valuation anomaly Our 160p TP represents an FY22 P/E rating of 14.5x (based on direct peer group ratings), falling to 13.0x FY23. With continued delivery, we see a strong argument for the shares to trade at a premium to peers, given superior growth and margin credentials.

All looks perfectly sensible (inc the TP)

[maddox] 27/1/2022 11:27

Great presentation - key point for me is the positive news on the integration of Memery Crystal. There is always risks involved in bringing different firms together. Good question asked - revealed that no Senior Partners have left. Also, looking at performance achieved, signals that there has been little disruption incurred in the process.

So, they are putting together a good track record of successful execution - following on from, Convex (which struggled initially due to Covid); and LionFish set-up. This is good to have in view as they intend to make further acquisitions.

Another welcome point, not mentioned in the RNS, is that they are launching a charm offensive towards Institutional Investors.

It's worth mentioning - anyone that wants to hear the presentation and Q&A can listen to the recording on the excellent Investor Meet Company platform - that is usually available quite quickly.

[wanttowin] 27/1/2022 07:47

Great update..10% ahead of expectations..margins improved..integrations going well and a nice divi.. sweet.

[mashman] 25/1/2022 22:00

RBG HOLDINGS PLC will be holding an Investor Presentation meeting on 27th Jan 2022 at 10:00am GMT.

[maddox] 25/1/2022 10:18

Yep, me too - rooted-out a few coins down the back of the sofa and picked-up a few more of these, seeing Mr Market was giving them away. Looking forward to the update.

[petewy] 24/1/2022 17:48

Wait til tomorrow...

[wanttowin] 24/1/2022 15:31

I've added here... on what has been my worst day ever on the Stockmarket.

My portfolio has been raped, pillaged and totally violated !

[scubadiverr] 19/1/2022 11:06

I presume the trickle down is due to the threat of wage inflation and the associated increase in costs, although this threat is industry wide and with having a better handle on costs and having greater margins over competitors, in the longer-term this could give RBL and MC an advantage.

I'm hopeful we'll hear news on progress with the re-run of Neptune, but more importantly, Shango, with its potential recovery of £75m due this year. Rather juicy considering last night's mcap of only £115m.

Convex should have had an amazing year and hopefully we'll see successful conclusions from Lionfish, and a further increase in commitments and deployments.

And of course a useful dividend.

[2bluelynn] 19/1/2022 10:47

Hope it's a good one (announcement) this keeps trickling down

[dicktrade] 19/1/2022 10:21

The ex div day last year was 4/2 so if things are the same this year there will have to be an announcement pretty soon.
Richard

[wanttowin] 19/1/2022 09:45

We had a trading update on the 28th Jan last year, so hoping for news soon as this needs a boost.

[danvestment] 11/1/2022 11:31

My favourite new porn star holding

Rosenblatt and Crystal Memery - It's like something out of Dallas - you couldn't make it up!

[2bluelynn] 05/1/2022 16:51

AJ bell for me

[wanttowin] 05/1/2022 12:59

Hi Richard, I use Interactive Investor and find them really good..

[dicktrade] 05/1/2022 11:29

You were correct
buy 10,000 @127.22
sell 10,000 125.23

[dicktrade] 05/1/2022 11:25

WTW,
HL who have been useless lately.
I will have another look now.
Tks

[wanttowin] 05/1/2022 10:40

Can buy as many as you want now, who are you guys with ?

[dicktrade] 05/1/2022 10:09

Ive been trying to buy this morning, could only buy v small amounts but oddly enough when i tried some dummy sells i could sell v few. I hold so will try to top up during the day.

[2bluelynn] 05/1/2022 09:45

Can only buy 1500 shares at 1.28 . Wonder if it's time for a move up ?

[wanttowin] 04/1/2022 16:21

Firming up nicely..

[maddox] 14/12/2021 17:28

Hi Oatey,

Good to share thoughts - that's why we're here. Can't understand why someone is giving us the thumbs down haha?

RBGP is IMHO definitely a growth stock - and on an historic basis on a PEG of 0.4 - which implies a fair value share price of c. 277p. And currently on a p/e of 10.3 where 20+ would be far more typical for a growth stock - which implies a share price of >215p.

So, seriously undervalued on a historic basis and we both think that its having a great year!

[oatey] 13/12/2021 10:08

Maddox - thanks for the reply, very much appreciated, and yes I'm sure you're right about trying to work it out and making some unforeseen accounting error - I look forward to seeing the year end results!

H1 the company made £3.03m net income (3.5p EPS) so it would take Memery Crystal to be making pretty much zero in H2 for 8p EPS to be correct (I think)

Even if the analysts are right, I am still convinced it is the most under-valued share in my holdings. I can only guess that since the highs of 140+ earlier this year, that some have decided to take profits recently and pushed the price down.