Litigation Cap. Mgmt - Fair Value Accounting and Dividend Payment

Litigation Capital Management

18/07/2023 07:00

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RNS Number : 2935G  Litigation Capital Management Ltd  18 July 2023

18 July 2023

 

Litigation Capital Management Limited

("LCM" or the "Company")

 

Transition to Fair Value Accounting and Dividend Payment

 

Litigation Capital Management Limited (AIM:LIT), a leading alternative asset
manager of disputes financing solutions, provides a market update for the
twelve month period to 30 June 2023 ("FY2023").

 

Following a number of recent resolutions in the second half of FY23, the
result for the full year will deliver LCM's strongest performance to date by a
significant margin. The Company is well positioned for the year ahead with in
excess of A$80m in cash held at period end. We will provide further details
with the release of our year end results.

 

The Company wishes to update the market on two important developments.

 

Reporting update - Transition to Fair Value Accounting

 

The evolution of the Company's business over the past two years, transitioning
away from the legacy direct investments business model and towards positioning
LCM as an Alternative Asset Manager, necessitated the need to review the
Company's accounting policies. In consultation with our advisers, the Board
has taken the important decision to transition to Fair Value accounting.
This will put LCM in line with industry peers in both accounting policy and
fair value framework. In doing so, we expect to announce our audited results
for FY2023 under both the existing accounting policies as well as the newly
adopted Fair Value accounting. This will provide our investors with better
transparency on the impact of the transition.

 

Dividend

 

Following the strong financial performance of the business during FY2023, the
Board has decided to pay a dividend of 2.25p per ordinary share payable to
Shareholders. The dividend timetable for this distribution will be contained
within the FY2023 results announcement.

 

Patrick Moloney, Chief Executive Officer, commented: "We are pleased with the
performance of the business over the past 12 months, particularly as we begin
to see the benefits of moving to a fund management business model. Our strong
financial performance is the best in LCM's history and reflected in the
Board's decision to pay a dividend."

 

Jonathan Moulds, Chair, commented: "The transition to Fair Value accounting is
a significant milestone for LCM.  We believe this decision just taken by the
Board should be welcomed by investors. Given the strong performance, the
underlying pipeline and cash reserves LCM has built up, it is an appropriate
time to pay this dividend.  The Board will continue to keep under review the
optimal way to return value to shareholders, balancing our future investment
opportunities with the importance of rewarding our shareholders."

 

 

Enquiries

 Litigation Capital Management             c/o Tavistock PR
 Patrick Moloney, Chief Executive Officer

 Mary Gangemi, Chief Financial Officer

 Canaccord (Nomad and Joint Broker)        Tel: 020 7523 8000
 Bobbie Hilliam

 Investec Bank plc (Joint Broker)          Tel: 020 7597 5970
 David Anderson

 Tavistock PR                              Tel: 020 7920 3150
 Tim Pearson / Katie Hopkins               LCM@Tavistock.co.uk

 

NOTES TO EDITORS

 

About LCM

Litigation Capital Management (LCM) is an alternative asset manager
specialising in disputes financing solutions internationally, which operates
two business models. The first is direct investments made from LCM's permanent
balance sheet capital and the second is third party fund management. Under
those two business models, LCM currently pursues three investment strategies:
Single-case funding, Portfolio funding and Acquisitions of claims. LCM
generates its revenue from both its direct investments and also performance
fees through asset management.

 

LCM has an unparalleled track record driven by disciplined project selection
and robust risk management.

 

Currently headquartered in Sydney, with offices in London, Singapore, Brisbane
and Melbourne, LCM listed on AIM in December 2018, trading under the ticker
LIT.

 

www.lcmfinance.com (http://www.lcmfinance.com/)

 

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.

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