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
Jon Divers, Chief Executive
Officer
Kevin McNair, Chief Financial
Officer
|
Via SEC Newgate
|
|
Singer Capital Markets (Nomad and Broker)
Rick Thompson / Alex Bond / James
Fischer (Corporate Finance)
Tom Salvesen (Corporate
Broking)
|
Tel: +44 (0)20 7496 3000
|
|
SEC
Newgate (for media/analyst enquiries)
Robin Tozer / Molly
Gretton
|
Tel: +44 (0)7970 664807
rbg@secnewgate.co.uk
|
About RBG Holdings plc
·
Further information about RBG Holdings plc is
available at: www.rbgholdings.co.uk
·
Further information about Rosenblatt (founded in
1989) is available at: www.rosenblatt.co.uk
·
Further information about Memery Crystal (founded
in 1978) is available at: 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.