REG - Manolete Partners - Further Trading Update

Manolete PartnersAnnouncement

20/04/2023 07:00

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RNS Number : 8857W  Manolete Partners PLC  20 April 2023

20 April 2023

 

 

Manolete Partners PLC

("Manolete" or the "Company")

 

Further Trading Update

Manolete Partners plc (AIM:MANO), the leading quoted UK insolvency litigation
financing company, is pleased to provide the following additional update on
trading for the year ending 31 March 2023 ("FY23").

 

This announcement follows on from our recent Trading Update dated 14 March
2023.

 

All figures contained in this announcement are subject to full audit.

 

1.   Record New Case Investments

 

The final number of new case investments for FY23 was 263, 65% higher than the
159 new case investments for FY22. The FY23 number is the highest Manolete has
ever recorded.

 

For H1 FY23, new case investments were only 6% higher than H1 FY22. For H2
FY23, new case investments were 122% higher than H1 FY22, as the UK insolvency
market returned to more normal operating conditions following a two-year
suppression of the market by the UK Government in response to the Covid-19
pandemic.

 

2.   Record New Case Enquiries

 

For the full FY23, new case enquiries increased by 48% to a record high of 798
(FY22: 540), again driven by a particularly strong rise of 60% in H2 FY23
compared to H2 FY22.

 

3.   Record Case Completions

 

In FY23 Manolete completed a record number of cases: 192 (FY22: 139 completed
cases) representing an aggregate of £33.7m (FY22: £15.3m) legally binding
settlements, together with a small number of favourable judgments. This record
level of completed cases will drive cash income for the foreseeable future, as
the Company collects in the cash owed by defendants on these matters.

 

4.   Record Gross Cash Recoveries

 

In FY23, Manolete delivered record gross cash recoveries from previously
completed cases of £26.7m, 72% higher than the £15.5m for FY22. The £26.7m
is spread across 237 separate completed cases (FY22: 183) at an average of
£113k per case (FY22: £85k).

 

For FY23, after all costs (including new case investments, taxation, dividends
and interest), the Company generated £1.9m of net free cashflow compared to a
net outflow of £4.4m for FY22.

 

5.   Profit Estimate

 

Whilst subject to full audit, after a PBT loss of £(5.5)m for H1 FY23, the
Company expects to report a PBT profit of £1.6m for H2 FY23. Consequently,
the Board expects the PBT loss for the full year ended 31 March 2023 to be
£(3.9)m.

 

Steven Cooklin, CEO, commented: "Having navigated through a very testing last
two years due to the unique challenges of Covid-19, we are pleased to see the
business drive back into profitability in the second half of FY23, driven by
record numbers of new case enquiries, new case investments and case
completions. Organic cash generation from previously completed cases also hit
a record level in FY23 with gross cash of £26.7m and our best ever net cash
generation. With the UK economy facing challenging macro headwinds,
particularly high inflation and high interest rates, we expect our market to
remain strongly buoyant for the foreseeable future."

 

This announcement contains inside information as defined in Article 7 of the
Market Abuse Regulation No. 596/2014 ("MAR").

 

For further information please contact:

 

Manolete
Partners

Steven Cooklin (Chief Executive
Officer)                      via Instinctif Partners

 

Peel Hunt (NOMAD and Sole
Broker)                        +44 (0)20 7418
8900
 

Paul Shackleton

 

Instinctif
Partners
+44 (0)20 7457 2020

Tim Linacre

Victoria Hayns

 

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