Dr Chu increases RCG stake

Date: Tuesday 08 Dec 2009

RCG Holdings chief executive Dr Raymond Chu is buying shares in the Hong Kong-based biometric and RFiD technology firm for the second day running.

He bought 60,000 at 87.82p a share and followed this up with a further 50,000 at 86.85p a share. This has cost just over £96,000. Dr Chu owns 6.89% of RCG.

RCG gained a Hong Kong listing in February 2009 and this has helped to improve liquidity and raise additional cash. In October 2009, RCG raised £15.6m at 78.15p a share.

Revenues increased by 31% to HK$1.29bn in the six months to June 2009, while profits improved from HK$323m to HK$381m. China is becoming an increasing part of the business and RCG is beginning to win government work. The Middle East and newer markets were also growing.

Net cash was HK$83m at the end of June 2009. Cash generation has been improving over time but it was poor in the first half of 2009. RCG had to give its distributors better payment terms in order to help them.

RCG hopes that the legal case relating to the late Nina Wang’s shareholding in the company will be resolved in the near future. It has dragged on for a long time already and it could still drag on for longer. Her estate owns 24% of RCG. This stake has hampered the share price because of fears it could eventually be sold.


Top Director Buys

RCG Holdings (RCG)
Director name: Dr Raymond Chu
Amount purchased: 50,000 @ 86.85p
Value: £43,425

CLS Holdings (CLI)
Director name: Mr Sten A Mortstedt
Amount purchased: 27,665 @ 449.98p
Value: £124,487

Anglo Pacific (APF)
Director name: Mr Chris Orchard
Amount purchased: 10,000 @ 214.16p
Value: £21,416

Carluccio's (CARL)
Director name: Mr Frank Bandura
Amount purchased: 21,400 @ 82.00p
Value: £17,548

National Express Group (NEX)
Director name: Sir Sir Andrew Foster
Amount purchased: 8,254 @ 180.50p
Value: £14,898

BlackRock Smaller Companies Trust (BRSC)
Director name: Mr Robert Sinclair Robertson
Amount purchased: 3,509 @ 287.00p
Value: £10,071


Top Director Sells

Aberdeen Asset Management (ADN)
Director name: Mr Martin J Gilbert
Amount sold: 247,527 @ 139.00p
Value: £344,063

Shaftesbury (SHB)
Director name: Mr Jonathan S Lane
Amount sold: 34,274 @ 394.29p
Value: £135,139

Shaftesbury (SHB)
Director name: Mr Simon J Quayle
Amount sold: 23,171 @ 394.29p
Value: £91,361

Shaftesbury (SHB)
Director name: Mr Brian Bickell
Amount sold: 21,119 @ 394.29p
Value: £83,270

Shaftesbury (SHB)
Director name: Mr Thomas J C Welton
Amount sold: 19,007 @ 394.29p
Value: £74,943

Jardine Matheson (Singapore) (JAR)
Director name: Mr Simon L Keswick
Amount sold: 2,000 @ $30.00
Value: $60,000

Aberdeen Asset Management (ADN)
Director name: Mr Andrew Arthur Laing
Amount sold: 32,463 @ 139.00p
Value: £45,124

Aberdeen Asset Management (ADN)
Director name: Mr Bill Rattray
Amount sold: 32,463 @ 139.00p
Value: £45,124

Churchill China (CHH)
Director name: Mr R Kettel
Amount sold: 10,000 @ 275.50p
Value: £27,550

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