Rbg Share Discussion Threads

[elsa7878] 31/1/2023 13:44

Did she buy her 12% shareholding? Not as I understand it. She was gifted it in lieu of her expertise...

[scubadiverr] 31/1/2023 13:30

The debt could be cleared with just one of the 'elephantine' cases being successful, and there's 3. Debt is 'only' 25m to my recollection and the assets are earnings enhancing. While I wasn't comfortable with her salary or the bonus scheme, non have actually vested, have they? Happy to be shown otherwise.

[elsa7878] 31/1/2023 12:11

Look at the debt she piled up - as well as all the shares she awarded herself or persuaded others to award her. Debt and dilution will be her legacy and it will take years to clear and get the company back on an even keel.

[jonwig] 31/1/2023 11:10

interesteds - that rings true, thanks.

Gateley, the first law firm to float in the UK is successfully developing just this legal/financial services model, centred around planning, construction and similar areas. It also appears to have satisfied its lawyers with share-based compensation: there don't appear to be any dissents.

My instinctive feeling is that this move and its wording could do reputational damage to the firm. In the wider financial sector it probably would, but maybe law firms are different.

[interesteds] 31/1/2023 10:27

Foulston's big idea was to build a professional services conglomerate using the legal firm as a base and a cash cow. She got so far but the share price languished and shares were not therefore available as acquisition currency. A couple of losses in Lionfish are neither here nor there - it's not creating debt, it's just money spent that won't be recovered. But the idea of the conglomerate has been fatally damaged - mostly by the lack of progress in the share price - and the lawyers just want to go back to lawyering and not be part of a bigger dream. The 'cultural concerns' are very real and easy to understand. Lionfish will be disposed of since it is an uncomfortable reminder of the Foluston dream, it doesn't really matter whether the rest of LF cases are wins or losses.

What is left? A profitable legal services firm in which most of the surplus income is paid away as dividends as a way of keeping the lawyers' total remuneration at a level they want and expect. How should this be valued going forward? True growth is hard to see; as I see it, it should be valued like a utility stock. It should just be on a decent yield and put away in the back drawer with the other yield stocks. The share price may receover a bit from here as the results come out but excitement is not us. So long, Nicola, and thanks for all the 'fish!

[thomshrike] 31/1/2023 09:33

Harsh lesson for those fund managers who since the IPO were in awe of Nicola's brazen style. I hope that "cultural concerns" is not an euphemism for something more serious.

[johndoe23] 31/1/2023 09:25

My sentiments exactly

[riverman77] 31/1/2023 09:21

Disgraceful announcement - whether she needed to go or not, the tone is awful and tells you what a nasty little company they are - would certainly never even contemplate investing here again and doubt anyone else would either.

[scubadiverr] 31/1/2023 09:11

I never met her in person but initially saw her as the company's greatest asset, then the greatest liability. I'm going to carry on holding and hope Mike Diver can realize the opportunity here. Hopefully he will better represent share holders interests in the meantime, as he will likely be down on his shares as much as most

[bigbaggy] 31/1/2023 09:09

Previous RNS said former CFO’s options cancelled = good.

The ONE bad thing in this is the huge overhang of the former CEO’s shares (the fact they are in a trust is a red herring). A placing and/or a sensible long lock up should have been announced to allow the new board to steady the ship and get a grip on a new strategy.

[fredfishcake] 31/1/2023 09:03

Well that's me out. I saw Nicola present a few times and she was very impressive.

[qs99] 31/1/2023 08:38

Once you clear the air on a Board, clarity should enable better delivery IMO....DYOR but with sale of LF this dip IMO could provide a nice opportunity as trading is in line...DYOR

[scubadiverr] 31/1/2023 08:24

She said that it was clear from the RNS that that was the case, but it wasn't to me after reading each relevant RNS multiple times.While I don't like the disruption maybe a more suitable candidate can be found. Imo, she was paying herself far too much and was responsible for RP's ridiculous bonus. She put her shares in trust and then tried to tell the market she wasn't incentivised by the c. 12% so needed options so she could be aligned with shareholders. Interested to know what will happen to the chunk in trust. Can shares in trust be sold? Would she want them sold at this price?

[scubadiverr] 31/1/2023 08:15

I have it in an email from NF that RP would not be receiving the options

[indigocarmine] 31/1/2023 08:09

smidge21 - to be honest, I'm not sure why Robert Parks is still eligible for those shares. If my memory is correct they were issued on the proviso that he remained employed by the company for two years. Notwithstanding any secret negotiations, his resignation should have be reason enough for a waiver. Still, I'm not entirely convinced removing Nicola Foulston is a positive step, the RNS hints at at a toxic culture which I can perfectly understand - she never seemed one for harbouring a cosy working atmosphere, but this profession is notorious for self-indulgence and wasting money and probably needs a firm hand to stop investors money being frittered away. Haven't completely made up my mind yet, but I'm leaning towards bowing out of this share.

[jonwig] 31/1/2023 07:58

Nicky Foulston is CEO of the City Law Firm Rosenblatt Solicitors.

She was named Veuve Cliquot Businesswoman of the Year in 1997 when she was Chief Executive of Brands Hatch Leisure plc – she was, and remains, the awards youngest ever recipient. Nicky became Chief Executive of Brands Hatch in early 1990 when the business was valued at £6 million and built it into the largest organiser and promoter of motor sport in Europe.

In 1996, she floated the business on the London Stock Exchange; and in 1999, she sold the business for over $195 million to Interpublic, the US marketing giant. Nicky has since run a private family office with private equity investments in the USA and Europe.

She was originally appointed to the Industrial Development Advisory Board in 2014.

[fft] 31/1/2023 07:44

Could happen. The RNS said that due diligence (i.e. legal checks) were being carried out before a full release of info. Unusual statement. Obviously a big bust up last night.

[smidge21] 31/1/2023 07:41

Pity the BoD couldnt have revoked the FD's options when they were at it!

[qs99] 31/1/2023 07:22

Indeed, that is a big "Foxtrot Oscar" sort of statement, big falling out, but to be fair, they've taken quick action and once the LF business is off-loaded, the underlying business IMO should be easier to value...let's see....DYOR

[molatovkid] 31/1/2023 07:22

Yeah, that was any eye opener for me as well! Brutal.

[jonwig] 31/1/2023 07:21

Not often you get something this savage:

The Board has lost confidence in its Chief Executive, Nicola Foulston, as a result of cultural concerns and the execution of the Group's strategy; her employment contract has been terminated with immediate effect.

She was the one who steered Lionfish, I think, and was interviewed on the radio last year. It's the "cultural concerns" which are unusual.

[Not a holder, just interested in thew sector.]

[qs99] 18/1/2023 14:55

Decent bowl forming?

[ivan el terrible] 20/12/2022 06:13

Sorry - quoted wrong figures. I topped up at 63p after the big drop from 88/90p.