Published on: September 13, 2022

Solid first half shows resilience of model

RBG has reported a solid set of results for H1 22, in line with its July trading update, with strong performance in the core professional services businesses. The group remains on track against our FY22 estimates (revenue of £55.0m and adjusted EBITDA of £16.9m), with an expected positive skew in H2 from Convex and Lionfish. The integration of Memery Crystal (MC) is complete and the group’s diversified professional services revenue model has proved resilient against a continued backdrop of uncertainty. Demand for services across all three businesses remains buoyant, and management is optimistic in its outlook for the year and beyond, despite economic uncertainty. In our view, the valuation appears undemanding given forecast growth, both organic and through bolt-ons, coupled with the significant upside potential from contingent work and litigation finance.

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