Rbg Share Discussion Threads

[quepassa] 17/8/2023 20:34

Yawn, scuba.
You never add anything worthwhile.

[scubadiverr] 17/8/2023 20:03

Always worthwhile checking an avatar's posting history. I think it's wise to be suspicious when you see a new account, especially so when they only post on a particular share. Coincidence Igreen and Shep accounts look so similar?

[igreen29] 17/8/2023 19:02

The underlying fact is that both Rosenblatt and MC are not trading well and are currently making a loss.

[tomtrudgian] 17/8/2023 05:59

Yes, may well be upside but they are small cases. I agree with you evoque92, indeed it would be all astonishing if all litigation cases failed.

I was however trying to identify the existential risk to RBG. A say £250k win or lose would not threaten the company’s existence.

[evoque92] 16/8/2023 17:35

I think there is upside in the now written down litigation assets

[tomtrudgian] 16/8/2023 12:12

Kind of you Master RSI to so frequently update us, but there seem only two absolutely existential considerations for RBG shareholders.

So I chose to ignore other important matters like:
1/ Ian Rosenblatt’s £2.5m+++ five year employment cost. Beneficial or not? I have no view.
2/ The (unstated) interest payable on the £10m (now ££6.5m)five year Acquisition Term Loan, due for repayment by Jan 2026, I believe.
3/ The likely partial write down of the £52m “intangible221; assets figure by the auditors against the Y/end 2023 profits.
4/ It has already been announced that the £10.6m of Litigation Assets will be wholly written off against Y/end 2023 profits, if any remain.


The first consideration is the alleged haemorrhaging of fee-earning staff, of which endless rumours flow. I know nothing about this, but fee-earners are by far the biggest asset of any professional firm, never featuring in the balance sheet as such..

The second is the main HSBC debt facility of £22.3m which was fully drawn down at 31 Dec 22. It is due for renewal this year and negotiations are said to be ongoing.

Worryingly the interest is based at 2.9% above SONIA, which is higher than LIBOR. SONIA “Sterling Overnight Index Average” varies daily, and yesterday the total percentage chargeable was 7.6829%.

[master rsi] 15/8/2023 07:36

A very good start to the day on moving up to 23.50 v 35p +0.75p

The £10,000 Buys yesterday got the MMs short of stock this morning after further buys

[master rsi] 14/8/2023 11:25

spread 23 v 24p

3 x£10,000 Buys in a row from 23.55p to 23.70p12:18:38 42,16812:17:12 42,21312:14:30 42,437

[master rsi] 11/8/2023 09:47

22.50 v 24p +0.75p
On the move UP again, well the opposite of what the market is doing at the moment well down FTSE 75 points lower

[churchharbour] 10/8/2023 18:54

Grateful to Scuba for setting out the counter and defence - it would seem to be a reasonable assumption that the litigation partners within RBG will be able to justify the actions taken by RBG given the extent of write offs and losses incurred by previous incumbents

[scubadiverr] 10/8/2023 18:18

According to Roll on Friday, Velocity Venture Capital is a vehicle used by Nicola Foulston, and is being sued by RBGP. My reading is that this was set up so that she could benefit from overpaying Robert at our expense. So much so for her claim to be looking after small investors! Hopefully she will get what she deserves.

"RBG's defence and counterclaim alleged that Foulston also breached her fiduciary and director’s duties by placing herself “in positions of unauthorised conflict, preferring her personal financial interests” over her duties to RBG.

That involved misleading RBG’s remuneration committee over Robert Parker, who was RBG’s Chief Financial Officer for three years until he agreed to resign in December 2022, claimed RBG.

RBG alleged that Foulston erroneously represented that Parker was owed £300,000 under his contract, payable to a company, Velocity Venture Capital, of which she was a director and a shareholder. It alleged that Foulston did not disclose "the full nature or extent of the proposed arrangements involving [Velocity] and Mr. Parker and, accordingly, of her interest in the transaction".

It also claimed that at Foulston’s direction, Parker wrote off £73,630 in fees generated by RBG fee-earners who had been working on an intellectual property dispute for Velocity. RBG is now suing to recoup the sum.

Foulston's actions “gave rise to a clear (and not just potential) conflict of duty and interest” between her duties to RBG, “including to minimise write-offs”, and “her personal interest in the write-off of fees payable by VVC [Velocity], by which VVC and (indirectly) she would financially benefit”, RBG said"

hxxps://www.rollonfriday.com/news-content/exclusive-ousted-rbg-boss-nicola-foulston-barred-agm-accusations-fly

[igreen29] 10/8/2023 17:50

This is an extract from thr Times list of law firms currently being sued:
"In joint second place on the league table is RBG Holdings, which was floated in 2018. It is being sued by Nicola Foulston, 55, its former chief executive, in an embarrassing row over her dismissal from the business this year. At the time, the RBG board said it had “lost confidence” in her.
The litigation researchers noted that RBG was facing another lawsuit in a dispute with Velocity Venture Capital"
The total value of claims against RBG total over £15 million, the majority of these are not covered by the firms PI Insurance.

[master rsi] 10/8/2023 14:24

The 5K are busy and managed to get the price up to 22.50 v 23p

15:20:41 22.995 5000 15:23:01 22.995 5000

[master rsi] 10/8/2023 14:20

Bid back to 22p and almost paying full offer

15:15:25 22.495 5000 15:15:22 22.495 5000 15:14:26 22.485 10000

[tomtrudgian] 10/8/2023 11:20

Yes igreen29, lots going on which shareholders should have been told about in an RNS but we’re not.

The several 40 page charges were created on 28 July 2023, and are extraordinarily inclusive “belt and braces” ones. They all include a first charge, a negative pledge clause and also a floating charge, even against fixtures and desks. There is no mention of any increased debt facility.

The companies charged are:
RBG holdings Plc (includes Memery Crystal)
Rosenblatt Litigation Funding Ltd
Convex Capital Ltd
Convex Group (Holdings) Ltd
Lionfish Litigation Funding Ltd

And even the dormant Rosenblatt Ltd, which is being fined by Companies House for not filing accounts!

Why charge a non-trading company, you ask? Rosenblatt Ltd was the legal employer of Nicola Foulston and so is the defendant to her claim for unfair dismissal. So they will have to have funds to pay her (if successful), and HSBC want to have that as well.

Amusingly (not really), as she is still a director of Rosenblatt Ltd, she had personally to sign the charge last fortnight!

[zoolook] 10/8/2023 10:07

That’ll be a stitch up ;-)

[weaverbeever] 10/8/2023 10:03

Article in Times business section today about law firms being sewed. RBG 2nd highest on list. Former CEO sewing for wrongful dismissal

[tomtrudgian] 09/8/2023 00:48

Ian Rosenblatt has spent recent years as a charitable opera promoter and minor labour party donator. He did not, per successive Y/end accounts, have directorship or “any managerial role” in RSB.

His operas were available to RBG staff and the support was estimated, 3 years ago to be £400,000 pa. I have no idea if this figure was correct or, as I suspect, just promo puff. Or whether he or RPG paid for it. I remember once visiting RBG London office in 2020 that the reception was full of opera promo posters. Doubtless irrelevant.

So, what is relevant?

1/ Ian Rosenblatt is charismatic, probably has a huge number of past and continuing clients, and will certainly be an enormous asset to RPG. Is the £500000pa justifiable but not affordable?

2/ His reduced but still majority share holding is mortgaged yet again (not now to HSBC) so may possibly hang over the share price.

3/ Will the Memory/Convex 5 year £10m acquisition loan (repaid down to £6.5m at June 2023) be repayable by end 2025?

4/ And of course will the big debt be renewed in 2024?

However it’s not just a £500,000 pa cost to RBG is it? At this level there may well be benefits, pension contributions or even bonuses as with N. Foulston whom he appointed.

In addition comes 15.05% Employers (not employees) national insurance. Starting April 2023 there is a new 1.25% “health and social care levy” on salaries as well.

[igreen29] 08/8/2023 15:48

Just noticed HSBC has registered a new charge with increased debt facilities. I thought the plan of management was to reduce debt levels.

[scubadiverr] 08/8/2023 13:41

The shareholding would be worth far less if Ian hadn't of signed and taken his clients elsewhere. He's brought in £60m of business since IPO, surely it's worth 500k a year so that we have that business and he's not competing?

[quepassa] 08/8/2023 13:14

astonished that nobody has commented on the £2.5m payment - especially when viewed against the value of the shareholding immediately prior to the announcement.

sets the tone in my view.


all imo. dyor.
qp

[igreen29] 08/8/2023 12:36

Amen to that.