Shares in legal services group RBG Holdings (RBGP:AIM) jumped 6% to 64.5p on above-average volume after the firm reinstated its forecast for full year revenues thanks to recent deal flows.
Following the six-month trading update in mid-September, RBG’s newly-formed litigation finance business LionFish has realised two of its investment assets for a total of £1.1 million.
In addition, its mergers and acquisition (M&A) advisory business Convex Capital has worked on the sale of animal healthcare company Nutravet, generating fees of £1.2 million. Due to the pandemic, ‘a substantial portion’ of Convex’s pipeline was delayed until the second half of the year.
Following these deals, and based on the pipeline of opportunities across the different divisions as well as the level of trading over the last nine months, the board has confirmed its guidance for full year group revenue and realised gains of between £24 million and £26 million, against £23.7 million last year.
For now though the firm is holding fire on a decision on the dividend, given the ongoing uncertainty over the duration and potential impact on the higher-margin parts of its business of Covid-19.
