RBG Outlook Positive Amid Improved Annual Performance; Names New Chair

(Alliance News) - RBG Holdings PLC on Friday said 2020 "looks promising" as it has delivered ...

Alliance News 24 January, 2020 | 12:36PM
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(Alliance News) - RBG Holdings PLC on Friday said 2020 "looks promising" as it has delivered "substantial progress" in 2019 despite a "challenging" business environment.

The stock was up 1.5% at 100.00 pence a share on Friday afternoon in London.

The legal services firm said it expects its annual results to be "significantly" ahead of prior year.

Therefore, it would pay an interim dividend for the six months to the end of 2019, of 3p per share, taking its 2019 payout to 5p. In April, RBG declared a dividend of 2.8p for the last eight months of 2018. RBG floated on the London Stock Exchange in May 2018 after raising GBP43 million in its initial public offering.

In September, Rosenblatt acquired sell-side corporate finance boutique Convex Capital for a total of GBP22 million and changed its name to RBG following the acquisition.

RBG - formerly known as Rosenblatt - said revenue growth was aided by contributions from its dispute resolution practice area, litigation finance and the acquisition of Convex Capital Ltd.

The company's law operations, meanwhile, had steady performance, it said, particularly from its dispute resolution practice.

The corporate division - which is focused on commercial transactions - saw reduced billings as a result of uncertainty caused by Brexit. However, RBG said that Convex contributed "incremental" revenue, adding that it expects to see further benefits in 2020.

"2019 has been a year of substantial progress, with the group continuing to perform well in a challenging business environment. We are beginning to see the benefits from our focus on litigation finance opportunities," said RBG Chief Executive Nicola Foulston.

RBG said it currently has GBP2.2 million invested in 11 cases which have not concluded.

Looking ahead, Foulston said: "2020 already looks promising, especially in our corporate division, where there has been a pickup in activity post the election. I am very positive about the future of the group."

In addition, RBG said it has appointed Keith Hamill to as new chair, effective immediately, replacing Stephen Davidson, who is stepping down to focus on his other board appointments.

Hamill is currently a non-executive director of luggage manufacturer & retailer Samsonite, and chair of leisure services provider Horsforth Holdings Group. He also served as chair of hotel business Travelodge Hotels Ltd, food manufacturer Premier Foods PLC, and menswear company Moss Bros Group PLC.

By Ife Taiwo; ifetaiwo@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Moss Bros Group PLC 20.58 GBX 0.00 -
RBG Holdings PLC Ordinary Shares 96.00 GBX 0.00 -
Premier Foods PLC 36.00 GBX -1.77 -

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