Sam is a trader and one of our lead stock analysts at AskTraders. After starting his career predominantly in the forex markets, Sam now focuses on gold and stocks with a preference for macroeconomic analysis.
RBG Holding plc (LON: RBGP) released a pre-close trading update ahead of the publication of its financial results for 2020, stating that it expects revenue, including realised gains, and EBITDA to exceed analysts' expectations.
The Group's balance sheet holds net cash of £3.5 million, an improvement from 2019 at £1.9 million. As a result, RBG said the board intends to pay 3 pence per share in dividends to registered shareholders as of the February 5th 2021.
The Group’s law firm, Rosenblatt Limited exceeded 40% in revenue, EBITDA, and gross margins, having its most profitable year in these areas, while LionFish, a company that finances litigation matters run by other solicitors using Rosenblatt's expertise, was launched on May 1st. Lionfish currently have investments in seven cases.
In 2020, RBG's specialist sell-side corporate finance boutique, Convex Capital, completed three deals, with 2021 remaining strong for Convex, having already completed one transaction, receiving an income of £525,000.
The company expects to see an increase in merger and acquisition activity in 2021, driven by the economic conditions and possible changes in the Capital Gains Tax regime.
Nicola Foulston, RBG’s Chief Executive, stated: “The Group has demonstrated its resilience during a very challenging year. Our law firm, RBL has achieved its best financial performance since it was founded.”
The Firm's share price is currently at 70p after a positive 10.95% increase on Thursday morning.
Should you invest in RBG Holdings shares? RBG Holdings shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the sub market specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are RBG shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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