Shares in AIM-listed professional services firm RBG Holdings (LON:RBGP) climbed 7.34% to 68.70p (as of 13:25 BST) after revenues and realised gains for 2019 increased by 26% relative to the prior year. Profits before taxation were up by 27%, but the company has delayed taking a decision about paying an interim dividend until next month.
CEO Nicola Foulston commented: “2019 was a big year for the Group, not only in terms of our financial performance but also operationally. Rosenblatt continued to grow with the Dispute Resolution practice performing particularly well. In contrast, other practice areas such as our Corporate division were more subdued due to the uncertain business environment caused by Brexit. We completed our first acquisition on excellent terms that we believe are in the best interests of shareholders. By acquiring Convex Capital, we have also diversified our income away from the legal sector while providing opportunities for cross-selling. We have expanded our litigation investment portfolio with positive progress across many of the contingent cases we are working on. While a small matter, we have demonstrated the outstanding returns on offer with the successful conclusion of Project Blue Sky.
“The new financial year has been dominated by the COVID-19 crisis. I am delighted with how the business has quickly adapted. At Rosenblatt, we have been able to support all our clients remotely, aided by the IT investment since the IPO. The Firm has had many new client instructions, in particular, to handle complex financial restructurings and employment issues, arising from the crisis. At Convex, there is likely to be a delay in the completion of specific transactions, but the pipeline is strong.
“Across the Group, we have proven experience in supporting clients in times of upheaval. I believe that this gives us an ability to better react to the opportunities and challenges the crisis will inevitably offer. At this juncture, it is difficult to predict exactly how the Group will fare this financial year, but we have a solid balance sheet, but also services that will be in demand. We are cautious but optimistic that the Group will continue its positive progress over the coming months“.