Litigation Cap. Mgmt - Market Update

Litigation Capital Management

08/07/2022 07:00

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RNS Number : 7671R  Litigation Capital Management Ltd  08 July 2022

8 July 2022

 

Litigation Capital Management Limited

(LCM or the Company)

 

Market Update

 

 

Litigation Capital Management Limited (AIM:LIT), a leading alternate asset
manager of disputes financing solutions, provides a market update for the
twelve month period to 30 June 2022 ("FY 2022").

 

Based on unaudited management accounts the Group expects to report positive
growth in its financial performance compared to the comparative period
covering the twelve months to 30 June 2021 ("FY 2021"), this is despite
previously reported disruption and delay in justice systems. FY 2022 gross
revenue is expected to be approximately 25% higher than FY 2021, with adjusted
operating profit approximately 15% higher. Cash held at period end is A$29m
and total assets under management increased to A$414m. A decrease in overall
applications during the period reflected disrupted trading conditions, however
commitments were broadly in line with the prior year, indicating progress on
improving the quality of applications.

 

The Company had two material investments move into future financial periods.
Whilst such delays are diminishing, they are still present in our portfolio.
The financial performance of those investments will not be adversely impacted
by the delay indeed it may be enhanced. As previously disclosed, this is
purely a timing issue and is not an indication of LCM's current or future
financial performance, nor should it be taken as a direct move of such cases
into the following period forecasts as the collective portfolio and timing of
resolutions is continually assessed based on how investments are progressing
through either the court or arbitral cycle.

 

The degree of complexity in investments made by the Company means that whilst
LCM has extensive experience in the provision of disputes funding and finance
products to the market, that accurate forward forecasting is exceptionally
difficult to achieve. It requires the financier to predict accurately when a
particular investment, or portfolio of investments, will come to a conclusion
either through a negotiated settlement of the dispute or an adjudication by a
court or tribunal. Secondly, it requires the financier to predict the quantum
of such a resolution, either as a negotiated settlement or as an award by the
court or tribunal. Given the myriad of possible outcomes in respect of an
investment in a dispute, it is not reasonable or responsible to provide market
guidance.

 

Patrick Moloney, Chief Executive Officer, commented: "I'm pleased with our
resilient performance for the second half of the financial year, despite
continued challenging external conditions, in which we have maintained our
level of commitments alongside growing our assets under management.

 

"Noting that the average life of these investments is historically 27 months,
as our investments become larger and more complex, we expect the investment
period to increase to between 36 and 42 months.

 

"With the current market instability and uncertainty, we remain very confident
in LCM's growth prospects."

 

Enquiries

 

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

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

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

 Alma PR                                   Tel: 020 3405 0205
 Justine James                             LCM@almapr.co.uk (mailto:LCM@almapr.co.uk)

 Kieran Breheny

 

 

NOTES TO EDITORS

 

Litigation Capital Management (LCM) is a global provider of disputes
finance.  LCM provides capital and risk management services into the disputes
market including insolvency, commercial disputes, arbitral disputes, class
actions and corporate portfolios.

LCM has an unparalleled track record, driven by effective project selection,
active project management and robust risk management.

 

Current 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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