Published on: January 31, 2023

Refocus on professional services

RBG has confirmed that results for the year ended 31 December 2022 are expected to be in line with guidance. This follows a December update flagging a £4.0m non-cash write-off for LionFish. Although there could be considerable upside within the LionFish portfolio, it has the potential to cause swings in the overall group financial performance. This uncertainty has weighed on the shares, in our view, distracting from the success of the Rosenblatt and Memery Crystal (MC) integration. We welcome the announcement that management is looking to concentrate on the high-margin, stable, cash-generative professional services businesses, Rosenblatt Legal Services (RBGLS) and Convex Capital, while looking to reduce exposure to LionFish, with discussions underway. We also note today’s announcement that Nicola Foulston, CEO, has left the group, and await further information around a replacement in due course.