RBG Holdings: Trading and COVID-19 Update
RBG Holdings plc (AIM: RBGP), the professional services group, which includes one of the UK’s pioneering law firms, Rosenblatt Limited, today provides an update on current trading and the measures it has put in place in relation to COVID-19.
As a necessary precaution, in order to protect staff and ensure continuity of service to the Company’s clients, the Group has temporarily closed its London and Manchester offices. All of the Group’s 96 staff and directors are remote working from home. This move has been supported by the Group’s in-house IT capability, which has benefitted from the significant investment made in IT since its IPO.
The Group’s law firm, Rosenblatt, has always encouraged flexible working as part of its business model. This culture has smoothed the switch to remote working and enabled the Firm to operate at normal capacity. The Group will pay salaries in full as usual while staff are working as normal.
Subject to any further changes to the regulatory reporting guidance for quoted companies, as previously announced, the Group plans to publish its full-year results for the year ending 31 December 2019 on 21 April 2020. The Board confirms that the Group’s trading performance for the full year remains in line with the pre-close trading update issued on 24 January 2020.
The Group has a sound balance sheet, with cash of £0.7 million as at 31 March 2020 and no debt. Cash collections remain as forecast. The Company also has a £10 million revolving credit facility with HSBC.
At Rosenblatt, workflows since the UK General Election in December 2019 have been strong. Since moving to remote working, the Firm has seen no change in existing instructions with work proceeding as planned across all practice areas.
Furthermore, Rosenblatt has received new instructions as a result of client need for financial restructuring and employment-related issues. As such, the Group is not experiencing an impact to trading. However, like all businesses the Company is conducting regular stress tests and reducing all non-essential costs.
The Group’s other business, Convex Capital, is also working remotely. There remains a strong pipeline of transactions, including those that were ongoing at the time of the Government lockdown. However, the lockdown has the potential to delay the completion of certain transactions.
While the Board considers the Group to be in a strong position, it has decided to postpone the decision on the payment of the Company’s interim dividend until May 2020.
Nicola Foulston, CEO, RBG Holdings, said:
“As for everyone, COVID-19 has been a challenge, and I am hugely grateful for how all our employees have successfully adapted to the evolving situation. We are continuing to serve our clients and seeing new instructions as businesses need our support to meet the challenges they face. The Group has a sound balance sheet, and while we are carefully monitoring the situation, we are confident that the Company will come through the present situation in a strong position.”
RBG Holdings September 2019 Investor Update Video
RBG Holdings is listed on London’s AIM stock exchange with the ticker LON: RBGP.
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