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.
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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 ChuAmount purchased: 50,000 @ 86.85p Value: £43,425
CLS Holdings (CLI) Director name: Mr Sten A MortstedtAmount purchased: 27,665 @ 449.98p Value: £124,487
Anglo Pacific (APF) Director name: Mr Chris OrchardAmount purchased: 10,000 @ 214.16p Value: £21,416
Carluccio's (CARL) Director name: Mr Frank BanduraAmount purchased: 21,400 @ 82.00p Value: £17,548
National Express Group (NEX) Director name: Sir Sir Andrew FosterAmount purchased: 8,254 @ 180.50p Value: £14,898
BlackRock Smaller Companies Trust (BRSC) Director name: Mr Robert Sinclair RobertsonAmount purchased: 3,509 @ 287.00p Value: £10,071
Top Director Sells
Aberdeen Asset Management (ADN) Director name: Mr Martin J GilbertAmount sold: 247,527 @ 139.00p Value: £344,063
Shaftesbury (SHB) Director name: Mr Jonathan S LaneAmount sold: 34,274 @ 394.29p Value: £135,139
Shaftesbury (SHB) Director name: Mr Simon J QuayleAmount sold: 23,171 @ 394.29p Value: £91,361
Shaftesbury (SHB) Director name: Mr Brian BickellAmount sold: 21,119 @ 394.29p Value: £83,270
Shaftesbury (SHB) Director name: Mr Thomas J C WeltonAmount sold: 19,007 @ 394.29p Value: £74,943
Jardine Matheson (Singapore) (JAR) Director name: Mr Simon L KeswickAmount sold: 2,000 @ $30.00 Value: $60,000
Aberdeen Asset Management (ADN) Director name: Mr Andrew Arthur LaingAmount sold: 32,463 @ 139.00p Value: £45,124
Aberdeen Asset Management (ADN) Director name: Mr Bill RattrayAmount sold: 32,463 @ 139.00p Value: £45,124
Churchill China (CHH) Director name: Mr R KettelAmount sold: 10,000 @ 275.50p Value: £27,550
