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Started: JOHNO77, 16 May 2024 12:32
Last post: JOHNO77, 17 May 2024 10:14
Being well bid again...nice
Dowgate Wealth have been buying throughout and the needle hasn't budged. Maybe disposed of some property?
Now back concentrating on their core services that actually make money, RBG's in a much better place.
Now we have all lost money and most of the business ditched, it's probably a management buy out or low ball bid coming.
Good riddance I'm afraid as it can't be worth much anymore as a listed micro nano business management have turned it into!
Didn't learn how bad the management were quickly enough on my part - live & learn & move on!!
Most likely II's buying - will appear after hours prob.
??
Started: brains16, 8 Apr 2024 16:49
Last post: brains16, 8 Apr 2024 16:49
Has anyone information ref. the latest RNS share purchase?
That's two large purchase's today! Must be positive news, I hope.
This can only be good news and a great time to top up. Looking forward now with no distractions and just getting on with the job to put value back into the business.
Good luck to the board and all the loyal share holders.
Bid Target? Where do you get that idea from? They haven't got this far to sell out and in a hostile TO the assets would all walk away. They are obviously throwing the baby out with bathwater this year when the results will be announced (end of April ish) and will start again from there. Depends if the market for legal services has picked as the trading update (18 Dec) suggested that Legal Servicees, esp Memery Crystal, were toughing it out in a slow second half of 2023. Good news is that with all the Foulston ideas now put to bed I am sure morale in the firm is soaring.
With the disposal of Convex this could be a bid target for someone. If not we have a simple legal services business with no distractions from paying down debt. It feels like good news, I hope the market sees it that way.
Started: Forensic505, 28 Mar 2024 16:48
Last post: Forensic505, 28 Mar 2024 16:48
Convex sold at £13m loss.
Lionfish sold having incurred huge losses on just its first 4 cases.
Very large balance sheet write offs of WIP on historic contingent legal work.
The former management led by Nicola Foulston should hang their heads in shame. Appalling.
Tough medicine taken by new management team but didnt have any choice.
Like others have said - there might now be a take private/MBO of the remaining business. Could explain why Mr Ian Rosenblatt is stepping down from the board so quickly.
Started: Misterh, 5 Mar 2024 14:54
Last post: Misterh, 5 Mar 2024 14:54
Aiming to raise £700,000 but unlikely to raise more than a few pence looking at the SP.
Started: Matchbox1, 19 Jan 2024 11:27
Last post: DN2024, 25 Feb 2024 20:27
All Directors subscribing as of now - Retail Offer is not part of Placing and Subscription, and completion of the Subscription is not conditional on completion of Retail Offer.
https://www.proactiveinvestors.co.uk/LON:RBGP/RBG-Holdings-PLC/rns/1423158
Ian wants his money.
Placing at 9p .. not brilliant but better than most AIM companies
Mental debt here for a legal business of this size. The risks are obvious. I cannot see any reward in sight.
A long road to recovery here, if ever. No director buys even at this level is fairly damning.
Last post: Lifeboat, 26 Dec 2023 11:12
Me too, I think there's life left in the dog.
Happy new year to us all!
Last post: JOHNO77, 22 Dec 2023 11:55
Rightly or wrongly i have taken a punt on this.
If the bad news is out of the way, restructuring in hand and more importantly the big dog (Ian) is back to steady the ship and get it back on course. More upside long term than downside?
Famous last words..... :)
Why would you want to take such a gamble. The company owes over £20M at 8.3%. How long will it take to repay the debt? 5 years? Meanwhile there is unlikely to be any acquisitive growth, or much organic growth. What exactly would you be investing in? Only hope here is a take over, but given this type of business has little assets, it may be easier to just poach the people. Singer is predicting 4M Ebitda for 23, and 6M for 24, but you have to factor in the debt which is makes the enterprise valuation here 35M, so EV/Ebit is rather high = 8.75. I wouldnt touch this, but valuation wise it probably needs to half again to be appealing?
You also have a lot of Institutions who will probably dump this for above reasons, so expect valuation to be further depressed. Rosenblatt must curse the day he met Nichola.
I'm of the same opinion. If you assume that EBITDA remains static at £3.2 million per year then this is valued at less than 4 times EBITDA. Cash would all be absorbed by the loan repayments and interest, so no dividends, but if they succeed with any figures above this level the rerating could be 5x plus from here, or it could be zero.
This is a gamble and unfortunatly my punt money is tied up at the moment, else I would be tempted again.
I'm not sure if I should chuck some more cash at this or run for the exit. It does rather seem as if the new team is "kitchen sinking " everything they can so that in a couple of years there will be a big bounce in profits and no tax to pay. If they buy some shares then I will be tempted to follow suit.
I am tempted since I'm well in profit here from trading the covid bounce, I've been in and out recently but out when it just didn't feel right, I had a feeling something was up when it didn't bounce with conviction and my gut was right. The debt situation is the main concern but the bank have increased the facility recently by £3m, this is touch and go though and you could easily get a further rns in time saying they've broken the covenants, you could however just as easily get an rns saying they've received settlement on a legal case that they had previously written off (they wrote down several of these to 0 on their books in a recent rns), that might be a good time to buy.
Last post: Forensic505, 11 Dec 2023 15:24
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 ?...
Started: groundsander, 6 Oct 2023 12:33
Last post: jag81, 10 Nov 2023 12:56
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.
Started: Varnish, 28 Sep 2023 10:10
Last post: Varnish, 28 Sep 2023 10:10
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.
Started: Donny67, 14 Sep 2023 16:51
Last post: Donny67, 14 Sep 2023 16:51
Loads of large sells with very little buys. Is this a sign of another Company that's about to go into administration / liquidation?
Started: MasterRSI, 10 Aug 2023 15:36
Last post: MasterRSI, 15 Aug 2023 08:37
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
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!
Started: NettlesTheCat, 31 Jul 2023 22:09
Last post: NettlesTheCat, 10 Aug 2023 16:00
Looking good - expecting 100% profit on this one.
Apologies, I wasn’t being rude Gallmat, I was trying to state that my 17.49p buy is was ridiculous and anyone here doubting the substance of this company based on current SP has nothing to worry about, in my humble opinion.
Already at 20p…. 30p soon and then back to where it should be.
It’s oh so quiet ssshhhh
Not sure what type of post is this. I got lucky you did not.
Thx
(and chapesses!)
Got this at 17.49p as it's stupidly cheap - just because of no div and a 13m offset (most of which will come back anyway).
Already working on the April 2024 loan?
Nah, this isn't 1 17.49p share. Already up 10% in two days but I'm not jumping through hoops, I just feel for you guys who had this at 20/30/40p. It will no doubt get there very soon, I'm just very lucky to get in at the bottom but I'll be waiting for the 150p if I'm being honest.
Great company(s) and nothing more than a blip in my humble opinion.
Started: Craigb, 10 Aug 2023 15:46
Last post: Craigb, 10 Aug 2023 15:46
24p being paid, wonder how long the buying will continue.
Started: Craigb, 10 Aug 2023 15:32
Last post: Craigb, 10 Aug 2023 15:32
Buys at full ask, heading back to 30p??
Moving up nicely.
Started: Trendz, 31 Jul 2023 07:38
Last post: Trendz, 4 Aug 2023 08:26
Incredible value on offer here and ANX.
All going well on this remarkable bounce back
Chart .. http://uk.advfn.com/p.php?pid=staticchart&s=L%5ERBGP&p=23&t=1&dm=2
Probably see a bounce today, but a slow gradual increase is best for us to stop the traders.
Positive from here considering all the kitchen sink stuff in the last rns.
Thought the same.
Superb news to have such an industry heavyweight back taking the strategic reins. Genuinely chuffed to read this morning’s RNS and will now be buying more shares, on the basis that if he achieves anywhere near what I expect he will over the next 5 years, we’re looking at the bargain on the century down here at 3-4 p/e. Boom
Started: Craigb, 31 Jul 2023 13:37
Last post: Craigb, 31 Jul 2023 13:37
200,000 shares purchased between 2 directors, all my funds tied up in the short term. 🙁
Started: MasterRSI, 28 Jul 2023 09:12
Last post: MasterRSI, 28 Jul 2023 09:12
RBG (RBGP: 18p), a professional services group that encompasses London’s mid-tier law firms Rosenblatt and Memery Crystal and corporate finance boutique Convex Capital. It has exited all its litigation finance matters, which has come at a cost.
In a pre-close trading update, the group has written down the value of all the remaining conditional fee arrangements (CFA) and damaged-based arrangements (DBA) to zero including the four remaining fully funded LionFish investments (‘Why is RBG one of the lowest rated stocks in London’, 12 July 2023). The total non-cash cash write-off of £13.3mn (14p) includes a £9.3mn investment in a single case that the board now believe will not be successful. Any successful outcome of the other cases will be reported as revenue in the future. The impairment equates to 21 per cent of the group’s last reported net asset value of £61.4mn (64.5p).
Earnings downgrade undermines confidence
It’s not the only news to spook investors. The board has decided to suspend the dividend to accelerate a debt reduction programme and is now guiding shareholders to expect full-year cash profit of £10-12mn rather than the £14.9mn forecast by house broker Singer Capital Markets.
That’s partly because, although the corporate finance boutique, Convex Capital, has a strong pipeline of 18 deals, transactions are taking longer to complete. Singer now expects Convex to deliver £4.5mn of annual revenue, down from £7mn previously forecast and £5.4mn in 2022. The broker also reined in its full-year revenue estimate from £45mn to £40mn for the legal services division. On this basis, Singer now expects both full-year pre-tax profit and EPS to halve to £5.9mn and 4.5p.
Net debt forecasts adjusted
The broker also expects a small rise in year-end net debt from £19.2mn to £20mn, rather than a previously forecast reduction to £15.5mn. This implies a leverage ratio of 2.7 times cash profit (pre-IFRs 16), above the 2.25 times loan covenant.
However, the directors are in talks with the lender and are confident of obtaining a waiver if this scenario plays out. Singer’s cash profit forecast is at the bottom of management’s new range, so if RBG delivers cash profit at the top of the range then the leverage ratio would still be within the loan covenant.
RBG's share price declined 29 per cent following the trading update and the company is now being valued on a current year PE ratio of four, and a miserly three times forecast cash profit to enterprise valuation – 70 per cent rating discounts to peers. I would not sell out at this bombed-out level. Hold.
Started: Webba1, 26 Jul 2023 09:09
Last post: Gallmat, 28 Jul 2023 07:48
Personally i think he is too married to his positions. He covers so many sectors, cannot follow them correctly. Also he has issue with selling on bad news, people do not like it.
His initial tips are sensible. After that you have to make your own mind up, and not just follow his reassuring rebuy tips
I agree in that I have lost faith in our IC small-cap analyst: stocks are ( often) suggested as buys often when the technical indicators show prices declining against the moving averages and/ or with evident distribution. RBGP is oversold but now faces resistance.
Another Simon Thompson gem! Avoid!
Exactly, added some this morning for a recovery.
I'm not invested here , though watching for several months now, interesting investors chronicle just tipped it a several weeks ago,
https://www.investorschronicle.co.uk/ideas/2023/07/12/why-is-rbg-one-of-the-lowest-rated-stocks-in-london/
Though now the dead wood is possibly cleared then longer term a speculative buy position might be considered , when dividends eventually get paid out again then they should be reasonably generous . One to watch I say.
GLA
Started: NettlesTheCat, 27 Jul 2023 15:07
Last post: jag81, 27 Jul 2023 16:53
Can you please post the full article trendz
Simon Thompson has cost me a lot of money over the years. Worse thing I ever did was subscribe to that mag. Has he got anything right? Anyway the RNS today sounds like a right dogs dinner - not surprising the share price drop.
Hopefully Simon Thompson at the IC comments on the update - would be an impartial view of the situation...
Looks too cheap to me - even without the Div.
Last post: Craigb, 27 Jul 2023 15:00
Dirt cheap, I’ll give it a few days to see how it settles, going to buy a 2nd tranche sometime shortly.
OK, so Singers note just published has EBITDA @£10m (lowest est) and Profit after tax @£6m. Bargain basement. Market cap of £17m is surely a joke?!
It seems the price has been holding once the offer is at 18p, there was interest earlier, and is also now, time to have a close look as it develops from this point,
Seems overdone today, 7million profit on a MCAP of 17 million seems crazy even with the debt, which will be reduced via the divi cancellation.
So we are currently £17.4m valuation. Following this morning's kitchen sink job, expected EBITDA now £10-12m, which will be conservatively £7m profit after tax. Debt will also fall given temporary halt to dividends and I suspect that the new CEO has set himself up to beat expectations. The p/e is now less than 3 and the underlying business is holding up quite well given the economy. My personal view (DYOR) is that this could be a 100% riser over the next 4-5 months. GLA!
Started: shamI89, 27 Jul 2023 11:56
Last post: Craigb, 27 Jul 2023 11:59
Cancellation of divi’s (although to reduce debt so not a bad thing), write off of 13.30 million (any income from these investments will be classed as revenue)
Gives them a fresh slate now.
Cash balance, as I went through last year's results and profit looks impressive, net debt does not seem to be too high either. So what is driving the price down if institutional seller is out too?
And now you know why.
Good riddance.
Confirmation that Nicola Foulston has sold up entirely...
https://www.rbgholdings.co.uk/investor-relations/shareholder-information/ - "* 8.93% of these shares are held by Cascades Limited. Cascades Limited is ultimately owned by the trustee of “The Foulston Family Trust” a trust of which Nicola Foulston is a beneficiary. The remaining 0.51% shares are held by the Trustee of Nicola’s Foulston Self-Invested Personal Pension Scheme."
Good news. Strange to see this down 3% on the TR1?
Started: bluemango, 22 Jul 2023 18:01
Last post: MasterRSI, 26 Jul 2023 09:00
Yes has reached the bottom and yesterday the overhang had been cleared, and now on the bounce back strongly
WOW - Humongous volume today. Turnaround time (barring a savage profit warning...)
Probably a question that's been asked many times over the last couple of years, but has this now passed its lowest point?
Taken a small stake in the belief that it may have, or at least is near to it. They've given a projected 4.8p 2023 dividend to Progressive Equity for their research note just published, surely with some degree of confidence that they can achieve that. If so, yield down at this price makes them look almost ridiculously attractive.