REG - Manolete Partners - Full Year Trading Update

Manolete PartnersAnnouncement

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RNS Number : 7350B  Manolete Partners PLC  24 April 2026

24 April 2026

 

Manolete Partners PLC

("Manolete" or the "Company")

 

Full Year Trading Update

 

Strong H2 trading performance as forecast

 

Manolete, the UK's leading insolvency claims financing company, today
announces a trading update for the year ended 31 March 2026 ("FY26"). All
figures in this announcement remain subject to audit.

 

Highlights

 

·      Strong H2 trading performance

·      FY26 Realised Revenue of c.£28.0m (FY25: £29.5m) in line with
expectations

·      Strong gross cash receipts of £26.6m (FY25: £25.6m)

·      Net Debt of £11.5m (FY25: £11.1m) and free cash outflow of
£0.2m (FY25: inflow of £0.5m)

·      Forward book(1) increased significantly in value to £67m (FY25:
£49m) which provides confidence for increased revenue and profits in FY27

 

FY26 trading performance

 

The Company is pleased to announce that Realised Revenue for the full year is
expected to be in line with expectations(2) at c.£28.0m (FY25: £29.5m). This
reflects an increase in the number of higher value, higher margin case
completions during the second half, as forecast.

 

Gross cash receipts were strong at £26.6m and represent a £1.0m increase
versus the prior year. Net debt at 31 March 2026 increased to £11.5m (FY25:
11.1m) and there was a free cash outflow of £0.2m in the period (FY25: inflow
of £0.5m).

 

The stronger trading performance in the second half enabled continued
investment in new cases and helped offset one-off adjusting items(3) and the
non-payment by a small number of large debtors as noted in the Company's
statement of 16 September 2025. Two of these payments continue to be delayed
and the Company's net exposure to these debtors is approximately £4.7m. The
Board remains confident that the full amount will be received in due course.
However, the Company has not yet concluded its bad debt review in conjunction
with its auditors and if there is no change in circumstances before the
conclusion of the audit, the Company will consider some provision against
these debtors, which is likely to be in the region of £1.5m-£2.0m. The
Company's expectation of Adjusted Realised Profit Before Tax (PBT)(3) is
£1.9m (FY25: £0.6m) before any adjustment for these debtors.

 

Good progress on strategic initiatives

 

During the year, the Company made good progress in further strengthening its
operations to provide a platform for continued growth whilst maintaining focus
on its highly efficient system of working.

 

The Company made three new hires into the legal team to drive continued growth
in the number of new case referrals and implemented new business development
initiatives to support the Company's existing nationwide referral network.
This has led to £32m of new cases being signed in FY26 (FY25: £26m),
representing a 23% increase year-on-year, and this is expected to increase
further during FY27 as the enlarged team continues to drive new case signings
at higher levels of volume and value.

 

In relation to the Company's loan facility, HSBC has waived the requirement
for former CEO Steven Cooklin to maintain a minimum shareholding in the
Company.

 

Refreshed leadership team and Board

 

During the year, the Company refreshed its leadership team, with Manolete's
Managing Director Mena Halton appointed as Chief Executive Officer in August
2025 and highly experienced public markets CFO Will Sawyer appointed as Chief
Financial Officer in December 2025.

 

The Company also welcomed leading barrister Marcia Shekerdemian KC to the
Board as a Non-Executive Director in March 2026. She replaced Dr. Stephen
Baister, who stepped down from the Board but continues to provide consultancy
to the Company.

 

Outlook

 

The forward book at 31 March 2026 was £67m and has grown by £18m or 37%
year-on-year. This has been driven by the investment in the legal team and
business development initiatives which has resulted in higher value cases
being signed. Large cases with a forecast revenue value over £0.5m comprise
£32m of the forward book, up from £21m at prior year end.

 

Given the growth in the forward book and the backdrop of an improving
insolvency market, the Board are confident of increasing Realised Revenue and
Realised PBT in FY27.

 

Commenting, Mena Halton, Chief Executive Officer said:

 

"We performed well in the second half, with an increase in the number of
higher value case completions driving improved trading performance, as we
forecast at the half year. At the same time, we continued to strengthen our
team and new business development function to support our future growth. Our
forward book has increased significantly in value and we are confident of
continuing to build on our market leadership position as UK insolvencies
persist at elevated levels."

 

 

1.     The value of the forward book represents the aggregate forecast
revenue on live cases excluding cartel cases.

2.     Company compiled consensus prior to the release of this
announcement for the year ended 31 March 2026: Realised Revenue £28.3m and
Realised Profit Before Tax £1.5m.

3.     Adjusted Realised Profit Before Tax is defined as Realised Profit
Before Tax before Adjusting Items comprising reorganisation and restructuring
costs and share based payment charges totalling £1.2m.

 

 

The information contained in this announcement is deemed to constitute inside
information as stipulated under the retained EU law version of the Market
Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement this inside information is
now considered to be in the public domain.

 

 

For further information please contact:

 

Manolete Partners

Mena Halton (Chief Executive Officer)                via
Houston

Will Sawyer (Chief Financial Officer)

 

Canaccord (NOMAD and Sole Broker)               +44 (0)20 7523
8000

Stuart Andrews

Emma Gabriel

Harry Rees

 

Houston (Financial PR)
            +44 (0)77 3303 2695

Charlie
Barker
 +44 (0)20 4529 0549

Nick Jackman

Manolete@houston.co.uk (mailto:Manolete@houston.co.uk)

 

About Manolete Partners PLC

Manolete Partners Plc is the UK's leading insolvency claims financing company.
Serving a growing market worth over £500 million annually, the Company has a
highly experienced team with coverage across the UK and a proven track record
of generating strong historic returns across over 1,400 cases financed and
completed to date.

 

Widely recognised as the industry leader, Manolete is the only company in the
insolvency litigation funding section to be ranked in Band 1 of the legal
industry's prestigious Chambers Guide five times. The Company is also
five-time winner of 'Insolvency Litigation Funder of the Year' at the
Turnaround, Restructuring and Insolvency Industry Awards.

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