REG - Litigation Cap. Mgmt - Trading Update

Litigation Capital ManagementAnnouncement

29/01/2025 07:00

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RNS Number : 0986V  Litigation Capital Management Ltd  29 January 2025

 

29 January 2025

 

Litigation Capital Management Limited

("LCM" or the "Company")

 

Trading Update for First Half of 2025 Financial Year

 

Litigation Capital Management Limited (AIM:LIT), an alternative asset manager
specialising in dispute financing solutions internationally, provides the
following trading update for the first half of the 2025 financial year,
covering the six months ended 31 December 2024.

 

During the period, we achieved four case wins and incurred three case losses,
resulting in an aggregate multiple of invested capital (MOIC) of 3.7x on
realisations.

 Period  Realisations (A$m)  Invested Capital (A$m)  MOIC multiple
 H1      52                  14                      3.7x

 

 

 

Note:  Invested Capital includes LCM capital invested into the three case
losses in the period.

 

These realisations include the successful international arbitration claim
brought against the Republic of Poland as announced on 8 October 2024.  On a
fair value basis, these realisations are expected to contribute A$4m to Total
Income in the period as these cases collectively were held at a fair value of
approximately A$48m prior to conclusion.

 

Fair value movements on ongoing cases are expected to contribute positively in
the period to the value of A$1m.  This is inclusive of a A$7m write-down of
the fair value of the Queensland Electricity case following the trial loss
announced on 4 December 2024.

 

After accounting for operating expenses, finance costs, foreign exchange and
tax in the first half we anticipate reporting a modest Loss After Tax of
approximately A$8m (H1 FY24: Profit After Tax of A$7.3m).

 

Net debt as of 31 December stood at A$40.1m (FY24: A$8.9m) primarily
reflecting increased investment into ongoing cases.  As announced by the
Company on 2 December 2024, LCM entered into a new US$75m credit facility to
support future growth.

 

New Commitments

New commitments in the first half of FY25 were A$25m (H1 FY24: A$90m).  While
the period saw fewer quality opportunities meeting our rigorous investment
criteria, this ebb and flow of opportunities is not unusual, and we remain
confident in future capital deployment prospects.

 

 

Patrick Moloney, CEO of LCM , commented: "While the first half of FY25 has
been a period of mixed results, we are pleased with the strong realisations
achieved and the ongoing progress of our portfolio.  The high multiple on
invested capital reflects the value we continue to generate from our
disciplined approach to dispute financing.  We remain confident in our
ability to deploy capital effectively and to deliver attractive returns for
our stakeholders as we move into the second half of the financial year."

 

 

 

 

 

 

 

 

Notes

 

The figures in this RNS are all on an LCM-only basis.

 

Notice of Results

 

We expect to report our interim results on 18 March 2025.

 

 

Enquiries

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

 David Collins, Chief Financial Officer

 Cavendish (Nomad and Joint Broker)                                    Tel: 020 7220 0500
 Jonny Franklin-Adams, Isaac Hooper and Rory Sale (Corporate Finance)

 Tim Redfern, Jamie Anderson (Corporate Broking)

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

 

NOTES TO EDITORS

 

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/)

 

Inside Information

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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