RBG issued a trading update on 5 December highlighting that LionFish, its litigation finance arm, has lost two cases causing a £4.0m non-cash write-off. Despite this disappointing news, the ‘core’ business has performed ahead of expectations. We believe that management now has an opportunity to complete a plan to divest LionFish, either by a run-off of its existing commitments or a sale of its business. We would view either such plan as a positive for the group, allowing a focus on the high-margin, stable, cash-generative and diversified core professional services businesses. LionFish was, in our view, seen as a departure from the core business, which also raised concerns regarding IHT relief. The news of LionFish’s losses has prompted share price weakness, prompting director share purchases. Even on our reduced earnings estimates, a FY23 P/E of just 8.7x versus its peer group on c.13x offers a significant discount.