RBG Holdings PLC - London-based legal and professional services firm - Says the expected improvement in trading in the Legal Services division has not materialised over the second half, with trading broadly in line with the first. In particular, Memery Crystal has been hit by the lack of activity in commercial real estate and equity capital markets, as transactions forecast for the fourth quarter have been delayed or cancelled.

Expects 2023 revenue to be ‘slightly lower’ than market expectations of £42 million, at £41.9 million, down from £49.8 million in 2022. Expects adjusted earnings before interest, tax, depreciation and amortisation of £4.0 million, down from £15.8 million. Nevertheless, notes that there are ‘early signs of recovery’ looking ahead and expects a higher revenue and profit in 2024.

Non-Executive Chair Marianne Ismail says: ‘The board recognises that [2023] has been a year of significant transition and a disappointing one for shareholders. Nonetheless, the board is confident that the business is moving into [2024] on a significantly stronger footing than at the start of this year.’

Even so, Ismail guides for revenue and profit to be only ‘slightly higher’ in 2024.

‘Continuing to improve the group’s operational efficiency, expand margins and generate cash are the key priorities for the board and management team going forward,’ the chair says.

Current stock price: 11.07 pence, down 33%

12-month change: down 82%

Copyright 2023 Alliance News Ltd. All Rights Reserved.