companies

Operations

Rivington Street Holdings is a financial media and services group, which listed on PLUS in November 2008 through the reverse takeover of the mining and resources media firm, Commodity Watch. Founded in 2004 the company provides services to over 100 companies quoted on the AIM and PLUS Markets and to over 80,000 private investors through its six wholly owned subsidiaries.

It is – we should state explicitly – the ultimate owner of Unquoted-Analyst.co.uk

The 6 subsidiaries are:

- T1ps.com, the oldest arm of the business, owns 14 subscription-based websites and newsletters and runs the Master Investor conference, an annual event that regularly attracts between 100 quoted companies and over 2000 private investors. Also within t1ps, a team of analysts at Growth Equities & Company Research (GE&CR) provide commissioned research for over 50 quoted companies. Other ventures within t1ps include Squaremilebookstore.com, a website that sells various financial publications, t1pspreadbetting.com a spread betting service offered in conjunction with London Capital Group, and Free City Seminars, which organises conferences in London for retail and professional investors.

- Bishopsgate Communications, acquired by Rivington Street in 2005, is a financial public relations adviser to some 50 AIM and PLUS quoted companies. In return for a monthly retainer it advises clients on their PR strategy, drafts press releases, and seeks to manage press coverage and introduces its clients to writers, sell-side analysts and private client brokers. It also undertakes project work on matters such as flotations.

- Formerly known as Lion Capital, Rivington Street Corporate Finance (RSCF), acquired in July 2007, has 22 clients under its wing, 16 of which are quoted on PLUS. It provides advice on transactions, fund raisings and companies’ ongoing obligations to the market. In early January RSCF became a member of the London Stock Exchange, enabling it to act as a broker for Aim companies. In January 2009 RSCF recruited well known small cap stockbroker Dru Edmonstone to act as its head of corporate broking to raise capital for both AIM and PLUS listed companies.

- T1PS Investment Management provides advice about collective investments and currently runs the T1ps SF Smaller Companies Growth Fund. In 2008 the fund was bestp-performing fund in the UK Small Companies sector.

- ShareCrazy.com is an internet portal that provides data and information on AIM and the London Stock Exchange main market stocks. It also hosts popular internet TV shows Trading Places, Board Talk and It Should Be Fund. For legal reasons it is run as a distinct subsidiary but in effect it is operated via t1ps.com

- Commodity Watch, provides news and information on the natural resources, agricultural and renewable energy sectors, via its websites www.minesite.com, www.agriprods.com , and poweralternatives.com. The company also runs a popular monthly investor event, the Minesite Forum. Joining the division in December 2008 as a result of a largely paper based acquisition was the specialist oil website www.OilBarrel.com.

Management

Malcolm Burne, Non-Executive chairman, was a former stockbroker and financial journalist. He boasts director positions at not less than 20 different companies and has worked in various sectors including fund management, venture capital and investment banking. At the moment, he is also holds the positions of Non-Executive Chairman at Jubilee Platinum and Director at Mano River Resources.

Tom Winnifrith, Chief Executive is the founder and principal shareholder (36.82%) of the business. Winnifrith started his career in the City before writing for titles including The Investors Chronicle, Red Hot Penny Shares and the London Evening Standard.

David Oakley, Finance Director, joined RSH in 2008 and boasts previous experience as Finance Director at both Volo Computers and Wentworth Group Holdings. He was also appointed as the Managing Director of Ferrari Computers and Chief Executive of Computer Systems Development. Currently, Oakley also serves as Financial Director at Berkeley Scott Group

Maxine Barnes, Director, was the founder of Bishopsgate Communications and has over 10 years experience in financial communications. Over this time she has built up a portfolio of clients spanning a wide variety of sectors.

Emma Milton, Director, has held the position of CEO at Commodity Watch since 2004. A graduate of Geology and Mineral Resources, Milton spent five years at Standard Bank’ Mining and Metals Advisory team and has previously worked at Reunion Mining. She also holds the position of Director at mining recruitment website, Jobs4Mining.

David Hutchins, Non-Executive Director, was previously the head of M&G Management’s International Desk in London, where his focus was in precious metals and commodities. He moved into fund management with Yorkton Securities and then became the founding director of Resources Investment Trust.

The directors own 44% of the issued equity and all staff within the RSH group have either shares or options (or both) in the listed vehicle.

Financials

In the period prior to the reverse takeover, Rivington Street Holdings made the highest profit in its history, with T1ps.com and Bishopsgate Communications both investing in new staff and IT and delivering growth in profits and in the cashflow generated. Results for the year to 31st August 2008 have not yet been released but in the 10 months to 30th June 2008 the group generated revenues of £3,287,002 and pre-tax profits of £826,337. There was £631,922 net cash on the balance sheet at the period end.

In the year to 31st December 2007 Commodity Watch posted revenues of £948,235 and made pre-tax profits of £161,203. In the six months to 30th June 2008 revenues were £474,387, with pre-tax profits of £52,806. There was £657,054 of net cash on the balance sheet at the period end.

Outlook

In the admission document the Directors of Rivington Street Holdings noted that they looked forward with some degree of caution given the hostle economic climate and stated that they had already adopted appropriate prudent measures, while also investing appropriately in order to strengthen their new business pipeline. The company stated that the challenging climate will provide numerous opportunities to acquire additional businesses. As such, another year of organic growth was expected, with this complimented with suitable acquisitions. In taking over Commodity Watch and – subsequently – oilbarrel.com RSH stated explicitly that it saw the potential to take out duplicated overheads and to realise material operational synergies.

Clearly RSH’s fortunes are linked to both the health of the stockmarket and to the general economy and neither has strengthen in recent months. There are no public forecasts for RSH. Its strong net cash position should act as a bulwark against tougher times and gives it the scope to accelerate its growth by acquiring weaker businesses. RSH has stated that it will seek to use its paper to fund the majority of acquisitions.