Shares in RBG plummet following trading update
Shares in RBG Holdings recovered slightly today after plummeting on Monday following news it has taken a £4m hit to its balance sheet.
In a trading update, the London listed professional services firm told investors it’s litigation funding subsidiary LionFish has lost two legal cases over the previous year
RBG said LionFish will take a £4m non-cash write off to its balance sheet in relation to the lost cases.
The professional services firm said the cases have already cost LionFish £1.1m.
It warned investors the litigation funder has committed to paying out a further £3.3m over the next two years.
“I am very disappointed with the LionFish position,” RGB Holdings chief executive Nicola Foulston said.
“We are taking steps to address the ongoing exposure to this subsidiary.”
LionFish’s losses are set to offset “robust” performances from RBG’s other businesses, including listed law firm Rosenblatt.
Founded in 1989, City firm Rosenblatt became the fourth ever UK law firm to list on public markets in 2018.
Shares in RBG fell by more than 34 per cent before recovering slightly over the previous day.