Rbg Share Discussion Threads

[lawson27] 16/5/2024 09:12

market order just to pick up another £2k @10, nice to see it on the move. GLA

Looks to be news in the system?

[tomtrudgian] 30/4/2024 19:54

Yes, the presentation did take place today. Take a look. Quite transparent and open about their past difficulties, I thought. It appears that Convex make achieve three at least of the four named cases that RBG get a slice of (max £600k).

HSBC seem to have been ‘kind’ but frankly they have no option. Debt and vacant office space is the biggest problem, and they still owe £300k to Foulston.

[interesteds] 30/4/2024 17:05

They have got rid of all the bad stuff and in theory are at the bottom of the "J". Issue is that the workload has dropped so although it's a cleaner business they are now running hard to stand still (or even go backwards). The announced presentation (RNS April 4) on Investor Meet didn't take place, and the announced results make no state of the current post-reporting season debt level. it's not confidence inspiring.

[quepassa] 30/4/2024 09:27

In my opinion, those are terrible figures.

The Balance Sheet does not add comfort.

Net Assets have plunged from £53m to £28m.


-The Goodwill/Intangibles figures are especially to be noted


-Note 33 to the accounts re HMRC are to be noted - as well as Note 34.


ALL IMO. DYOR.
QP

[tradingcoder] 19/4/2024 13:07

What's Simon Thompson tipping these days?

[tomtrudgian] 11/4/2024 09:57

I guess you are an accountant goldbutler, and so will already know the answer to your question. For the benefit of others, it is illegal for a company to pay a dividend unless out of ‘distributable reserves’. This is to avoid tax loss to HMRC.

There would appear to be no legal possibility of a dividend in respect of FY23. You may also be correct in suggesting there will be no dividends paid for the four years 2023 to 2027, whether there are then sufficient legally distributable profits or not.

Why? Firstly it’s HSBC’s decision alone. Secondly paying dividends costs fees to the paying agent. It is both administratively expensive, and not tax deductible (unlike the interest payable). The interest RBG are currently paying is 8.35% and, apart from Mr Rosenblatt, some may feel that paying down debt tax free is better than paying an effective increased tax cost of some 10%.

Tom Trudgian

[tomtrudgian] 08/4/2024 10:33

Fair points, adeg. However there is no time for a forced placing before the FY 23 results are audited. The interim 23 results were not audited and the ‘intangibles’ and ‘assets held for sale’ are now clearly grossly overstated, and will be written down somewhat.

Besides which HSBC cannot legally force a placing unless the newly agreed financing terms are dishonoured before expiry in Dec 24.

But why should they be dishonoured? Ian Rosenblatt’s ludicrous £2.5m five year fixed salary has been stopped. The £2m Convex sale cash has already been received (the extra £900k is only payable on future sales if they happen shortly). And no interest is payable (as opposed to accruable) for the 6 months to 30 June 24. The SONIA (sterling overnight index average) interest is currently 5.2% plus HSBC 3.15% margin, or a total of about £1.83m payable after June 24. All feasible to enable RBGH to avoid a placing before 2025.

And then what do we have? A simplified and allegedly profitable business with a good reputation but over-rented and under-utilised offices.

[goldbutler] 08/4/2024 10:03

Oatey has raised the great question - when will we get a dividend again.

TT , you have raised the issue of distributable profits, Figures for y/e 23 will not be good and Loss on sale of convex will not help for y/e 24.

Any dividend going forward can only be paid until any negative balance is cleared.
Do you want to estimate a balance figure for 23 and even 24 for the benefit of Oatey and others.

[adeg] 08/4/2024 07:19

If the business is not able to keep up with repayments on the loans HSBC could force further share placings to generate cash to pay down the debt.

However the benfit of such big losses on the books is that they won't be paying any corporation tax anytime soon, which again will help cashflow.

[tomtrudgian] 07/4/2024 19:45

All agreed, goldbutler, but it is even worse. HSBC are wholly in charge, but now have few realisable assets to foreclose upon. All they could do was to disallow dividends to be paid, quickly stop Ian Rosenblatt’s £500k pa salary, and allow the whole interest from Jan-June 2024 to be a ‘holiday’;. ie interest will be compounded on interest, and payable from July 2024.

Oatly, where on earth do you get a £3-4m full year 23 profit from, when the loss for the first 2023 6 months was £13.3m?

Also at 30 June 23 ‘intangible assets’ plus ‘assets held for sale’ were still fair valued at a total of £62.6m! Much of this will have to be written off as a loss by the auditors in the FY 2023 results.

[goldbutler] 07/4/2024 16:54

Oatey I cannot see any dividend for at least 4 years.

They should have stopped paying dividends much sooner.

All cash received needs to be thrown at the borrowings.
Huge Debt is just too great. It must be reduced as quick as possible.

Leasing liabilities are continuing worry.

Previous management totally responsible for this.

The company needs to trade its way out of it.
It can do it.

[oatey] 05/4/2024 17:16

Is the company going to report somewhere in the region of £3-4m in net profit this year? at 3-4p EPS the company still looks massively undervalued. Does anybody anticipate a return to dividends at any point in the near future or will it just be another year of paying down debts? GLA

[qs99] 04/4/2024 09:13

looks like Bid dropped to pick up stock, while buyers paying full offer IMO that looks like strength on the buying. Let's see/DYOR

I don't see instis selling out from placing, but maybe some PIs....

[phil453] 04/4/2024 09:11

9p placees will be looking to exit

[blackhorse23] 04/4/2024 09:07

Out with profit & going to reinvest in APH

[qs99] 04/4/2024 09:03

Now market can try & value the business on a "clean" basis, maybe just maybe we will see value begin to accrue again...let's see...pre kitchen sink results, market this morning is IMO saying it likes the thought process...20p next stop before a pause or below/higher than that? DYOR look forward to views

[skyracer] 04/4/2024 08:10

In case nobody noticed.

[goldbutler] 02/4/2024 19:56

Congratulations , and well done to Mr Rosenblatt and new CEO et al.

RBGP removes convex outfit and actually receives something for it and not a moment too soon and at a huge paper loss.

I refer to my posts 843-844 -858-860.

Forensic505 and not for the first time , on the other board sums this up correctly.

[tomtrudgian] 30/3/2024 10:18

It is very easy, and wholly understandable, to blame Nicola Foulston with the benefit of hindsight. Solicitors’ businesses have so many different profit centres with wholly different cash flow timings. They always have been very difficult to manage, and she was correct that the usual partnership model is illogical. The best senior lawyers are inevitably inexperienced at business.

OK, her Lion Fish adventure was grossly under capitalised. I admit I did not realise that at the time. All sell-side agencies like Convex Capital have had a dreadful time too. To be fair £22m sounded like a fair price when bought.

So what were her good ideas? A quite superb web site and media public relations, and a focus on avoiding work with low margins. Not a lot else including the diversifications and debt.

As to the FY 2023 results, they will show a dreadful loss due to the write offs. HSBC has agreed to nil interest being paid from Jan to June 2024, but the arrears are accruing.

[oatey] 29/3/2024 13:31

Bought Convex Capital for £22m in 2019, sold today for £2.6m ... Well done *slow clap*

[mrphil] 12/3/2024 11:23

Surprised they raised even that much in the retail offer, why would you bother at that price which was no better than market rate?

[tradingcoder] 11/3/2024 08:50

It's been turning since £1. Not sure I believe it

[quepassa] 11/3/2024 07:07

1. Retail Offer announced to raise up to £700,000

2. Amount raised £137,910


-One can draw one's own conclusions as to the success or otherwise of the Retail Offer.

-Speaks to the current Retail appetite for the shares.


all imo. dyor.
qp

[scepticalinvestor] 03/3/2024 21:06

The tide is turning here. Think I will take a punt soon.

[tomtrudgian] 26/2/2024 15:41

RBG will not get £10m for Convex even from Convex, their best chance. Excellently run company with long term prospects and bought for a fair £22m price at the time, but the M&A business is now dead. Any sale will be affected by their now onerous office lease too.

Can it be sold to anyone else? Unlikely.
Will the retail share issue succeed without production of audited FY 2023 accounts? No.
Were shareholders told that the HSBC recent support included a ‘holiday’; for interest payments from Jan 24 to June 24? No. It will have to be paid.