The stock exchange-listed owner of City firm Rosenblatt Limited has put on hold a decision on whether to pay a dividend this year after the pandemic hit its M&A and litigation funding businesses. In a statement accompanying unaudited results for the six months to 30 June, RBG Holdings plc said today that the dividend announcement will be postponed until the year end ‘when it expects to have better visibility on the group’s performance for 2020’.
Today’s figures show pre-tax profits falling 56% to £1.4m on revenue up 17% to £12m.
According to the statement, the group continued to trade profitably over the six months, with the Rosenblatt practice the primary source of revenue. However the crisis meant that the group’s M&A business, Convex Capital Limited, ‘has seen deals delayed and some cancelled’.
However the statement said that the group was well-positioned to benefit from litigation investment sales and deferred M&A deals in the second half of the year.
Shares in RBG Holdings plc dropped by nearly 14% to 62.5p on the announcement.