Shares in the publicly traded legal firm RBG Holding have taken another hit after founder Ian Rosenblatt demanded the removal of several top executives, including the CEO. RBG, which is listed on the London Stock Exchange, operates two law firms: Rosenblatt, which specialises in disputes, and Memery Crystal, a commercial advice specialist.
Since its listing in May 2018, the company has struggled to turn a profit, with losses accelerating over the past year. This year, its difficulties have intensified as its share price has fallen into single digits, as reported by .
Over the past year, the group's share price has plummeted by nearly 76 per cent. When RBG announced in May that it had lost more than £11m last year, its share price continued to decline.
By early November, shares in the legal firm were trading at their lowest ever level, well below 2p. At the time, Dan Coatsworth, an investment analyst at AJ Bell, commented that "RBG looks to be in a perilous state".
He added that "it’s hard to imagine that RBG can justify keeping its AIM listing given the tiny market value of the business unless trading radically improves."
However, there was a minor recovery in early December, with shares jumping from 1.63p to trade above 3p, peaking at 3.20p on 9 December, before falling back to 2.90p for most of December. Now, its shares have dipped slightly again, falling below 2.90p.
Just days before Christmas, shareholders were informed that the board of RBG had received a requisition notice from Ian Rosenblatt, calling for a general meeting to discuss the removal of the CEO and two current non-executive directors. It was reported in October that Rosenblatt has been pushing for the dismissal of CEO Jon Divers, who joined the company in 2022.
He threatened to convene an extraordinary shareholder meeting unless Divers was dismissed. The names of the two non-executives were not disclosed, but the group's board lists Marianne Ismail, Patsy Baker, and David Wilkinson.
Rosenblatt still holds over 20% of RBG’s stock, and according to shareholder reports, director remuneration in 2023 amounted to £3.6m, including over £2m paid personally to Rosenblatt. In its notice to shareholders, the board stated it would arrange the necessary meeting in line with statutory timelines.
"The board does not believe these resolutions are in the best interests of all shareholders and will make a further announcement in due course. Shareholders are advised to take no action at this time," the announcement read.
