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One to buy and tuck away for recovery
Yes - much better news
So the bank is happy and must have agreed a plan to ensure that the loan payments can be maintained over the next 2 years. There also appears to be some more good news to announce on the Convex side of things but not quite there yet.
Helpful comments if this was an insolvency situation, which it clearly isn’t.
I think the issue with Threeputt's comment below is that PLC's dont run existing loan facilities right up to the end of the term. It is almost always refinanced several months before the end of the term. And if RBGP's does run to only April 2024, it really should have been refinanced by now. If that is not possible, then one should go to an alternative. But that becomes a harder "sell" for the company, because the incumbent bank has already turned the opportunity down. One then gets into "alternative" lenders, who are just voracious sharks looking for 25%++
The one positive for them is the incumbent bank's security position: i havent looked at the numbers but they need to be sure that if they do pull the plug that they can get their money back. With a people based business that is a difficult proposition. The key will be whether the debtors cover the lending exposure and I would be looking for well over 100% cover. Maybe Memery Crystal can be sold back to management to raise funds ? Ditto the corporate finance business (I forget its name). Lionfish is just a big liability (and a terrible mistake by the former CEO). Then the Rosenblatt law firm will have some positive value as long as Ian Rosenblatt is involved (he is by far the key business winner there by all accounts). But - as ever in these insolvency situations, equity shareholders will be left with absolutely nothing.
This is looking terminal now....anyone heard anything ?...
"Why have we not seen an extension to the loan as yet ?"
because it doesn't run out until April 24 ?
We are waiting on the following:
- Convex: Further deal closures are needed from Convex this side of the year otherwise RBGP will likely miss the £10-£12m EBITDA guidance. Translation: another profit warning could be coming.
- Debt refinancing: CEO and CFO have always maintained RBGP has a great relationship with its bank, HSBC. Why have we not seen an extension to the loan as yet? If RBGP are looking at an alternative provider, why is this? Has HSBC requested an equity raise to help delever the business?
I sent a very peed-off message to investor relations, writing why the directors didn't have confidence in the company shown by the lack of director buys. I got a bit of a stroppy reply back and then 2 days later there were a couple of token director buys.
Clutching at straws maybe but I note there was a small director buy early October at a relatively higher price, they must have had confidence at the time ?
A lot of selling by the looks of things. Looks like they may know something we don't.
Goodness - didn’t think this could go much lower…looking terminal.
Hitting the risers board today, after Dowgate increasing holding and small insider buy this week.
Not hard to see why with net debt more or less equivalent to current market cap. Pleased to see though that discussions re. refinancing debt due in April 2024 have been positive.
Staying on the positive theme the board expects to meet current market forecasts for the year end of which the consensus is for adjusted EBITDA of £10.2m. That's with adjusted EBITDA at the half year of £2.9m. So as they say the second half should be a lot stronger (and that seems to be the case 3 months in) and so for me a bit more patience is required before we get the rerating that's surely due. Will be interesting to see if ST takes a positive view later today.
Loads of large sells with very little buys. Is this a sign of another Company that's about to go into administration / liquidation?
A very good start to the day on moving up to 23.50 v 35p +0.75p
The £10,000 Buys yesterday got the MMs short of stock this morning after further buys
3 x£10,000 Buys in a row from 23.55p to 23.70p
12:18:38 42,168
12:17:12 42,213
12:14:30 42,437
Claim - counter and defence............
"RBG's defence and counterclaim alleged that Foulston also breached her fiduciary and director’s duties by placing herself “in positions of unauthorised conflict, preferring her personal financial interests” over her duties to RBG.
That involved misleading RBG’s remuneration committee over Robert Parker, who was RBG’s Chief Financial Officer for three years until he agreed to resign in December 2022, claimed RBG.
RBG alleged that Foulston erroneously represented that Parker was owed £300,000 under his contract, payable to a company, Velocity Venture Capital, of which she was a director and a shareholder. It alleged that Foulston did not disclose "the full nature or extent of the proposed arrangements involving [Velocity] and Mr. Parker and, accordingly, of her interest in the transaction".
It also claimed that at Foulston’s direction, Parker wrote off £73,630 in fees generated by RBG fee-earners who had been working on an intellectual property dispute for Velocity. RBG is now suing to recoup the sum.
Foulston's actions “gave rise to a clear (and not just potential) conflict of duty and interest” between her duties to RBG, “including to minimise write-offs”, and “her personal interest in the write-off of fees payable by VVC [Velocity], by which VVC and (indirectly) she would financially benefit”, RBG said"
https://www.rollonfriday.com/news-content/exclusive-ousted-rbg-boss-nicola-foulston-barred-agm-accusations-fly
On the move UP again, well opposite of what the market is doing at the moment well down FTSE 75 points lower
Looking good - expecting 100% profit on this one.
24p being paid, wonder how long the buying will continue.
Undervalued UK small caps like this are about to explode. Inflation print next Tuesday i think could be the best day of the year for UK markets.
Look at the US rally.
Hold on tight. Those minus 10-20% portfolios could be back in the black soon, gents!
Definitely someone accumulating.
Spread 22.50 v 24p +1.50p +6/90%
A few 5K buys plus a couple of 10K one after another has got the MMs in a bit of bother and got the spread large at the moment.
Bid back to 22p and almost paying full offer
15:29:19 23,00 5,000
15:23:01 22.995 5000
15:20:41 22.995 5000
15:15:25 22.495 5000
15:15:22 22.495 5000
15:14:26 22.485 10000
15:20:41 22.995 5000
15:23:01 22.995 5000
Buys at full ask, heading back to 30p??
Moving up nicely.