Rbg Share Discussion Threads

[robsy2] 28/9/2023 07:29

Looks like the worst is over:

Current Trading & Outlook

-- The first half of the Company's financial year has historically been the slower of the two halves, and the Board can already see this trend continuing, with a strong start to H2 2023

-- Trading within the Group's Legal Services division was robust in the first half, and the Group has good visibility on revenue and profitability in this division for the second half

-- As a result, the Board is confident that the core Legal Services business will meet full year market expectations

-- Convex Capital has grown its pipeline to 22 deals, seven of which are in the latter stages of completion. The Board is confident that several of these deals will complete before the end of the year

-- The Board therefore expects to meet its current market forecasts for FY23 [3]
-- Positive discussions with lenders underway regarding the Group's debt facilities due for refinancing in April 2024

Jon Divers, CEO, RBG Holdings plc, commented: "Over the last six months, the new leadership team has established a clear strategy to restore value to the Group by focusing on the Group's core Legal Services business. Furthermore, we have reduced the Group's risk profile and are prioritising the payback of the Company's debt. To help achieve this, we have now disposed of LionFish, suspended the dividend, and discontinued the previous management's strategy of carrying investments in CFAs and DBAs as assets on our balance sheet and only recognising revenue when it is paid.

"Overall, I am pleased with the performance of our core Legal Services businesses, Rosenblatt and Memery Crystal, which are delivering solid revenues and profits. Their trading, despite the wider economic environment, has highlighted the resilience and counter cyclical nature of the businesses, both of which have over 30 years' proven trading history. Driving the organic growth of these businesses is at the heart of our plans. Our average revenue per fee earner have improved significantly during the period and is among the highest in the industry. Since April, we have hired seven additional Partners; five have already started with the remaining two joining either later in the year or early 2024. They all have high levels of experience and knowledge in their respective fields, creating more revenue opportunities.

"M&A activity in the UK during the first half of 2023, industry-wide, has been at a much lower level than in recent years. As a result, our specialist sell-side M&A advisory business, Convex Capital, only completed one deal in the first half of 2023. However, momentum is returning, and the business has a strong and growing pipeline. We are confident that several deals will complete before the end of the year.

"The decisive action we have taken during the first half, means that the Group has been de-risked and simplified, providing greater visibility to investors going forward. The ongoing business is profitable and highly cash generative and we are committed to reducing the Group's debt. We have a clear vision, a solid foundation on which to grow, and an absolute commitment to restoring the Group's value."

[aleman] 12/9/2023 12:35

Just about holding above the 20-day and 50-day? It's only a small cap so might mean less plus it's done it a few times before wiith little action. It could soon seem irrelevant come results anyway.

[shep22] 11/9/2023 23:55

September 28, RBG six months results, should be interesting. I expect to be vindicated.

[se81] 06/9/2023 13:55

someone on bid in size 150k @ 23.5 and 350k @ 22.5

[se81] 06/9/2023 08:45

Next leg up?

[scubadiverr] 04/9/2023 21:02

The first NOEL the angels did sayWas to certain poor SHEPherds in fields as they layIn fields where they lay keeping their sheepOn a cold winter's night that was so deepNoel, Noel, Noel, Noel

[quepassa] 04/9/2023 19:53

shep profile.

unvalidated poster
joined advfn on 23/6/23
39 posts to date - all on this bulletin board.

it is clear that shep is a former employee - but now fired.
disgruntled former employee syndrome. bitter and twisted. axe to grind.

[shep22] 04/9/2023 16:07

Again valid points, it is clear that while QP works at RBG he has little knowledge of the monthly financial performance of the business. The fact that five more partners are joining smacks of a desperate effort to fill a gap in revenue.

[shep22] 04/9/2023 16:03

Again valid points, it is clear that while QP works at RBG he has little knowledge of the monthly financial performance of the business. The fact that five more partners are joining smacks of a desperate effort to fill a gap in revenue.

[tomtrudgian] 01/9/2023 16:46

Yes QP it is informative, but of what? What staff conversations have lead to RGP employees wishing to read, let alone contribute to, these pages? I am sure it was honest and intended to be helpful.

Any employee’s view is subjective, inevitably unable to see the whole picture. Any management has a very lonely job, often unable to disclose everything to everybody. Management has to satisfy all stakeholders. At present the bank is absolutely crucial. Later stakeholders will come Employees, Clients, & Shareholders. In that order.

So what are the best case scenarios for RGB in 2025?
Rosenblatt Law and Memery Crystal to be profitable.
Ian Rosenblatt’s pay to prove justifiable.
Ian Rosenblatt’s shares not to be be foreclosed upon.
The acquisition loan to be repaid on schedule, or extended.
The main business loan to be extended on the same terms. It cannot be repaid.
The auditors do not require the ‘intangible assets’ to be written down at all.
The fee-earners lost can be replaced.
The lease costs are grossly over stated (as they usually are!)

If all that happens, RBG may well survive, as we all hope.

[quepassa] 31/8/2023 19:45

Thanks again for another great and informative post.
Refreshing and helful to have a new perespective on things.

Looking forward to further posts.

Cheers.

QP

[rbgemployee] 31/8/2023 18:14

He was COO of just legal services last year and then got made up when changes were made in January. He's personable and approachable - will talk to anyone from what I can see, and always leading from front at staff events and socials.

Last year he was obsessed with how much time we recorded, what we wrote off and how utilised we were - went on and on about it to the point of showing some naivety. His background is logistics I think, so industry not professional services so how he ended up with us is anyone's guess.

He is still around a lot in the office and he and his deputy Neil continue to be visible and still push for the basics of time recording. How much Convex and Lionfish have taken him away from focusing on LS I couldn't say but he is definitely still visible.

What he is doing for shareholders I can't say as I am not one, but from an employees perspective he is better than before. Openly admits integration was a mess, and some of that blame is his but tells us five new Partners coming soon. Time will tell I guess.

[quepassa] 31/8/2023 17:38

Oh great, thanks for a really interesting post.

What's your take please on the current CEO and his involvement in the day-to-day running of the business?

[rbgemployee] 31/8/2023 17:16

I am new to this forum - and I ACTUALLY work in RBGLS. I am staggered by the amount of ill informed nonsense posted here. I see people hankering back to the days of "great dividends" - that would have been at the time of "great toxicity". I can't comment too much on Nicky F - never had too much to do with her, but she was massively divisive and the firm is a nicer place since she left. Jon and the management team have invested heavily in ED&I, culture and staff wellbeing.

Last year we lost some fee earners - but so did all legal firms - US and Magic Circle were paying silly money for NQs and it filtered through the whole industry. Definitely not as many leavers since January - may be the job market, may be that people are happier.

Management try hard with comms too - Jon does quarterly briefings to all staff. He's cagey with the figures and tells us that we can only see legal services, not wider group but if I can read, we are not loss making. In fact, we are busy from what myself, and my colleagues can see.

[shep22] 29/8/2023 15:06

Very relevant points Tom, the company should be much more candid with shareholders.

[tomtrudgian] 28/8/2023 16:16

One can assume quepassa, that HSBC bank (and RBG management if entitled to be consulted), did not want the majority shareholder to sell down more of their holding, resulting from the HSBC withdrawal of their Ian Rosenblatt share mortgage to another mortgagee.(Date not given to shareholders).

One cannot assume that this resulted from a request from Rosenblatt for a remunerated directorship.

One can believe that management’s considered thought was that this the best way forward for all stakeholders: Employees, Creditors, Clients and Shareholders.

Tom Trudgian

[tomtrudgian] 25/8/2023 16:38

Who is running the show? In 2022&23 that was an easy one; HSBC bank. HSBC are not in control now and their managers cannot foreclose without bonus loss. So it may drag on.

Tom Trudgian

[quepassa] 25/8/2023 14:40

Two good posts, Tom.

And don't forget the recent £2.5m payment at a time when Company coffers are hardly over-flowing.

If I'd ever gone to my Chairman, Chief Exec or renumeration committee and suggested that I needed paying for not selling shares in the Company I was a Director of - and which I represented and was salaried by - I know exactly what their answer would have been.

And I can assure you that it would not have been very polite.


It begs an important question.

Just who is running the show.


ALL IMO. DYOR.
QP

[tomtrudgian] 25/8/2023 11:23

Fee earners leaving the business? From personal knowledge. My wife is a retired litigation solicitor and we have many solicitor friends.

Alleged lease dilapidations? From personal knowledge.

Losses at Memory? From personal contacts. Losses at Rosenblatt? From igreen29 post.

Litigation claims total over £15m? From recent posts. May well be unreliable, and I have no personal knowledge. In particular is this figure includes employment or lease claims, the reference to lack of Professional Indemnity insurance is surely wholly inappropriate.

[scubadiverr] 25/8/2023 10:12

That's many uses of the word allegedly! Maybe you could be so kind as to state and reference if these allegations have come from anywhere other than the Shep and Igreen accounts?

[tomtrudgian] 25/8/2023 09:52

Thanks shep22 and igreen29. I was a medium sized shareholder. The main reason was the great Foulston dividends, RNS, PR, and media communication. And especially the (quite unjustifiable in my view!) NIL inheritance tax on AIM shares if held over two years.

I sold last winter, thinking of buying back in 2024 after debt rescheduling. So what do I find?:

No rescheduling. Instead new “belt ‘n braces” HSBC charges registered August 2023 at much higher interest.
Fee earners have jumped ship allegedly.
The majority shareholder’s shares are still mortgaged personally.
No shareholder communication of matters so required to be by the LSE.
Alleged (igreen29) loss making at both Rosenblatt and Memory Crystal.
Alleged litigation claims of over £15m against RBG without PI insurance cover.
Alleged lease-end dilapidations.

It was a great innovative business, so I do hope I am completely wrong.

Tom Trudgian

[shep22] 18/8/2023 20:55

Please, you do me a disservice scubadiverr, is your problem with message so you attack the messenger. Incidentally, unlike the information emanating from the company you will find that what Igreen has published to be accurate. Extraordinary that two people should agree that the management of RBG is considered to be appalling from the very beginning, collusion?