RBG Holdings PLC Trading and COVID-19 Update (8128I)
April 06 2020 - 2:00AM
UK Regulatory
TIDMRBGP
RNS Number : 8128I
RBG Holdings PLC
06 April 2020
6 April 2020
RBG Holdings plc
(the "Company" or the "Group")
Trading and COVID-19 Update
RBG Holdings plc (AIM: RBGP), the professional services group,
which includes one of the UK's pioneering law firms, Rosenblatt
Limited, today provides an update on current trading and the
measures it has put in place in relation to COVID-19.
COVID-19 Update
As a necessary precaution, in order to protect staff and ensure
continuity of service to the Company's clients, the Group has
temporarily closed its London and Manchester offices. All of the
Group's 96 staff and directors are remote working from home. This
move has been supported by the Group's in-house IT capability,
which has benefitted from the significant investment made in IT
since its IPO.
The Group's law firm, Rosenblatt, has always encouraged flexible
working as part of its business model. This culture has smoothed
the switch to remote working and enabled the Firm to operate at
normal capacity. The Group will pay salaries in full as usual while
staff are working as normal.
Current trading
Subject to any further changes to the regulatory reporting
guidance for quoted companies, as previously announced, the Group
plans to publish its full-year results for the year ending 31
December 2019 on 21 April 2020. The Board confirms that the Group's
trading performance for the full year remains in line with the
pre-close trading update issued on 24 January 2020.
The Group has a sound balance sheet, with cash of GBP0.7 million
as at 31 March 2020 and no debt. Cash collections remain as
forecast. The Company also has a GBP10 million revolving credit
facility with HSBC.
At Rosenblatt, workflows since the UK General Election in
December 2019 have been strong. Since moving to remote working, the
Firm has seen no change in existing instructions with work
proceeding as planned across all practice areas.
Furthermore, Rosenblatt has received new instructions as a
result of client need for financial restructuring and
employment-related issues. As such, the Group is not experiencing
an impact to trading. However, like all businesses the Company is
conducting regular stress tests and reducing all non-essential
costs.
The Group's other business, Convex Capital, is also working
remotely. There remains a strong pipeline of transactions,
including those that were ongoing at the time of the Government
lockdown. However, the lockdown has the potential to delay the
completion of certain transactions.
Dividend Update
While the Board considers the Group to be in a strong position,
it has decided to postpone the decision on the payment of the
Company's interim dividend until May 2020.
Nicola Foulston, CEO, RBG Holdings, said: "As for everyone,
COVID-19 has been a challenge, and I am hugely grateful for how all
our employees have successfully adapted to the evolving situation.
We are continuing to serve our clients and seeing new instructions
as businesses need our support to meet the challenges they face.
The Group has a sound balance sheet, and while we are carefully
monitoring the situation, we are confident that the Company will
come through the present situation in a strong position."
Enquiries:
RBG Holdings plc Via Newgate Communications
Nicola Foulston, CEO
Stifel (Nominated Adviser and Joint Broker) Tel: +44 (0)20 7710
7600
Gareth Hunt
Stewart Wallace (QE)
Tom Marsh
N+1 Singer (Joint Broker) Tel: +44 (0)20 7496
3000
Shaun Dobson (Corporate Finance)
Tom Salvesen (Corporate Broking)
Newgate Communications (for media enquiries) Tel: +44 (0)7540 106366;
Robin Tozer rosenblatt@newgatecomms.com
About RBG Holdings plc
RBG Holdings plc is a professional services group, which
includes one of the UK's pioneering law firms, Rosenblatt Limited,
which is a leader in dispute resolution.
Rosenblatt Limited provides a range of legal services to its
diversified client base, which includes companies, banks,
entrepreneurs and individuals. Complementing this is the Company's
increasingly international footprint, advising on complex
cross-jurisdictional matters. Rosenblatt Limited's practice areas
include dispute resolution, financial crime, corporate, banking and
finance, insolvency and financial restructuring, construction and
projects, employment, financial services, IP/technology/media, real
estate, regulatory and tax resolution. The Group also provides
litigation finance in selected cases through a separate arm.
The Group also owns Convex Capital Limited, a specialist
sell-side corporate finance boutique, based in Manchester, UK.
Convex is entirely focussed on helping companies, particularly
owner-managed and entrepreneurial businesses, realise their value
through sales to large corporates. Convex identifies and
proactively targets firms that it believes represent attractive
acquisition opportunities.
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END
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