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 eight 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 2,000 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.

- Rivington Street Corporate Finance (RSCF), formerly Lion Capital, 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 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, the T1ps Smaller Companies Gold Fund and the Enterprise Investment Scheme (EIS) fund. It also advises PLUS-quoted vehicle Worship Street Investments. The flagship Smaller Companies Growth Fund reported growth in net assets of 66.03% in the year February 2010.

- 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.

- J P Jenkins was established in 1991 as a market maker in unlisted and unquoted securities provides companies which are unlisted and unquoted with a solution enabling existing and prospective shareholders to deal in their shares. JP Jenkins was acquired in March 2009.

- Rosslyn Research & Viewpoint Field Services are market research companies acquired by Rivington Street Holdings in December 2009 from AIM-listed IQ Holdings. Rosslyn utilizes face-to-face, online and telephone media to gather information and Viewpoint provides field services and viewing facilities.

Management

David Hutchins, Non-Executive Chairman, 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.

Tom Winnifrith, Chief Executive is the founder and principal shareholder, owning just over 30% 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.

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.

The directors own 35.3% of the issued equity and all staff within the RSH group have either shares or options (or both) in the listed vehicle.

Financials & Recent Trading

In the year to the end of August 2009, RSH posted an 8% rise in turnover to £4.079 million pounds, with pre-tax profits of £300,317. Underlying EBITDA was £819,412, with net cash standing at £819,412 at the period end. During the year, it launched its second investment vehicle, Worship Street Investments, with overall funds under management (FUM) rising to £11.02 million pounds. The group continued to recruit staff at various levels.

In its trading statement for the six months to 28th February, RSH said underlying EBITDA is expected to be 33% ahead of the £408,175 reported in the previous year. The EBITDA was achieved despite a one month negative contribution from the newly acquired Rosslyn Research and Viewpoint Field businesses. Sales from these units are now said to be increasing while their fixed cost bases are expected to fall sharply from April and again in May as remaining IQ Holdings Plc costs are removed and the majority of Rosslyn and Viewpoint staff moved into a single location in central London.

RSH added that it retains a strong cash and listed securities position despite moving to clear the liabilities taken on with Rosslyn and Viewpoint at an accelerated rate. While no dividends are expected to be paid, as a result of strong cash generation, the group intends to initiate a return of capital to shareholders via a semi-annual tender offer for shares. The company continues to look for acquisition opportunities which can be achieved without issuing equity.

In February RSH announced that, to take advantage of favourable tax laws, it would be changing its corporate structure and putting in place a new parent company based in the Isle of Man. The new company will own the entire issued share capital of RSH, and CEO Tom Winnifrith will, along with the rest of the board, be based in the territory.