REG - RBG Holdings PLC - Pre-Close Trading Update and Notice of Results

RBG HoldingsAnnouncement

30/07/2024 07:00

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RNS Number : 2887Y  RBG Holdings PLC  30 July 2024

30 July 2024

 

RBG Holdings plc

("RBG", the "Group", or the "Company")

Pre-Close Trading Update and Notice of Results

RBG Holdings plc (AIM: RBGP), the legal services group, today publishes a
pre-close trading update ahead of the expected publication of its financial
results for the six months ending 30 June 2024 in September 2024.

During the first four months of FY24, trading was in line with management
expectations, however the Group subsequently experienced a quieter May and
June due to a number of factors including the General Election. Revenues for
H1 '24 were £18.4 million (H1 '23 £19.8 million). The Board is pleased to
say that July activity levels have been robust and the Board expects that the
second half of the year will be stronger than the first half of the year.
The Company currently has a number of significant opportunities within its
pipeline and the Board anticipates trading for the full year to be broadly in
line with market expectations 1  on a probability weighted basis.

Operational improvements highlighted previously continue and the Group's cost
base has been further streamlined through a reduction in the number of staff
and the consolidation of its property portfolio. Management anticipates that
annualised savings from these two areas should be approximately £3.0 million,
although the vast majority of those savings will not be realised until 2025
and beyond. As a result of actions taken to reduce cost, the Company currently
enjoys good visibility over its fixed cost base. Management continues to keep
its property requirements under review and to identify further potential cost
saving opportunities.

The Board is committed to reducing debt as a core part of the Group's
strategy. However, the steps taken during 2024 to reduce costs as outlined
above meant that cash generated during the period was absorbed by operations
and changes in working capital.  As at 30 June 2024, the Company's net debt
position was £24.4 million (2023: £21.0 million) and the Company is trading
within its debt covenants.

Overall, positive progress is being made towards delivering the Group's
strategy of building a high margin, cash-generative, legal services group with
diversified revenue and profit streams that deliver growth and sustained
shareholder value.

 

Enquiries:

 RBG Holdings plc                                                 Via SEC Newgate

 Jon Divers, Chief Executive Officer

 Kevin McNair, Chief Financial Officer

 Singer Capital Markets (Nomad and Broker)                       Tel: +44 (0)20 7496 3000

 Rick Thompson / Alex Bond / James Fischer (Corporate Finance)

 Tom Salvesen (Corporate Broking)

 SEC Newgate (for media/analyst enquiries)                       Tel: +44 (0)7970 664807

 Robin Tozer / Molly Gretton                                     rbg@secnewgate.co.uk (mailto:rbg@secnewgate.co.uk)

 

About RBG Holdings plc

·    Further information about RBG Holdings plc is available at:
www.rbgholdings.co.uk (http://www.rbgholdings.co.uk)

·    Further information about Rosenblatt (founded in 1989) is available
at:  www.rosenblatt.co.uk (http://www.rosenblatt.co.uk)

·    Further information about Memery Crystal (founded in 1978) is
available at:  www.memerycrystal.com (http://www.memerycrystal.com)

 

 1  The Company understands that market expectations for the financial year
ended 31 December 2024 are revenues of £41.2m and Adj. EBITDA of £6.0m.

 1  The Company understands that market expectations for the financial year
ended 31 December 2024 are revenues of £41.2m and Adj. EBITDA of £6.0m.

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