RNS Number : 0753I
Manolete Partners PLC
19 November 2025
19 November 2025
MANOLETE PARTNERS PLC
("Manolete" or the "Company")
Half-year results for the six months ended 30 September 2025
Manolete (AIM:MANO), the leading UK-listed insolvency litigation financing company, today announces its unaudited results for the six months ended 30 September 2025 ("H1 FY26").
Financial highlights
· Total revenue was £12.7m in H1 FY26, -12% vs £14.4m in H1 FY25
· Realised revenue was £14.0m, -7% vs £15.0m in H1 FY25
· EBIT was £0.1m in H1 FY26, -86% vs £0.7m in H1 FY26. Removing the (£0.8m) fair value write off for partial settlement of the truck cartel cases and the (£1.1m) fair value adjustment for the remaining cartel portfolio (as communicated in RNS of 21 July 2025), EBIT of £2.0m was generated in H1 FY26.
· Administrative expenses were £3.9m, in H1 FY26 +4% vs £3.7m in H1 FY25
· Gross cash receipts were £14.5m in H1 FY26, +1% vs £14.3m in H1 FY25, including cash receipt from the settlement with a single manufacturer in the truck cartel portfolio
· Net cash generated from completed cases was £7.8m in H1 FY26, +3% vs £7.6m a year ago
· Cash balance was £1.1m as at 30 September 2025, +67% vs £0.6m the previous year
· Net debt was £10.8m as at 30 September 2025, -9% vs £11.9m the previous year
· No interim dividend is proposed for FY26 (FY25: £nil).
Operating highlights
· 505 new case referrals in H1 FY26, a 15.6% increase over the 437 cases referred in H1 FY25
· 146 new case investments, +15.9% vs 126 in H1 FY25
· Record number of case completions in H1 FY26 at 146, +7% vs 137 in H1 FY25
· Money multiple (MoM) of 2.1x for lifetime completions, down from 2.2x in H1 FY25
· The first truck cartel case settlement was reached and paid in full during the period. The terms of the Settlement agreement are subject to confidentiality restrictions; however, the Settlement resulted in Manolete receiving and retaining £3.2 million
A table detailing the portfolio investment performance over the past 16 years is available in the investor presentation on the Company's investor website: https://investors.manolete-partners.com/
Outlook
The most significant factors in the first half of the financial year were the first truck cartel claim combined with a lower than average case settlement value during a quiet summer. Trading in September showed a marked improvement and this has continued into October. New case referrals remain buoyant, at close to record levels.
At the end of H1 FY26 Manolete had 446 live cases in-progress (413 live cases at the end of H1 FY24). Critically the total expected settlement value of the cases signed during H1 FY26 was 31% ahead of the same period last year. As previously stated the level of activity for Manolete is not linear and a number of higher value completions are expected over the coming months which will contribute to further realised revenues for the year.
Overall the Board remains confident in the prospects for the business, expecting a return to higher average settlement values in the second half of the year and total realised revenues (excluding the cartel settlement) being weighted towards the second half.
Mena Halton, Chief Executive Officer, commented:
"I was delighted to be appointed CEO of Manolete in August this year, during a first half that saw the settlement of our first cartel claim and a record number of completions, albeit at a lower than normal average value. During the second half we will continue to focus on adding and completing more, higher value, claims, realising revenues and expanding our talent pool for the future.
"I would like to express my thanks to all of Manolete's employees and other stakeholders and look forward to building on this strong platform in the future"
For further information, please contact:
Manolete Partners Plc
Mena Halton (Chief Executive Officer)
via Instinctif
Canaccord Genuity Limited (NOMAD and Sole Broker)
Stuart Andrews
+44 (0)207 523 8000
Instinctif Partners (Financial PR)
Hannah Scott
+44 (0)20 7457 2020
Galyna Kulachek
manolete@instinctif.com
Chief Executive Officer's Statement
Introduction
I am pleased to present our unaudited financial statements for the six months ended 30 September 2025.
Manolete is the leading UK quoted company in the insolvency litigation finance market, a sector which plays an important role in recovering monies for insolvent estates where trade and other creditors have not been paid for goods and services supplied and HMRC is an involuntary, but often major, creditor.
The Insolvency Market
When companies enter into an insolvency process, the appointed Office Holder will typically identify claims including those arising from director breach of duty, antecedent transactions such as transactions at undervalue, and overdrawn director loan accounts. The targets of these claims will frequently be the directors of the company and connected parties. Other claims may lie against third parties such as professional advisors and banks. The office holder is either left with no funds with which to pursue the claims, or is reluctant to risk what limited funds there may be. Manolete bridges this finance gap and the significant and increasing number of UK insolvencies provides the opportunity to purchase claims.
Sources; Insolvency Service September 2025 (compulsory liquidations only); Companies House (all other insolvency procedures).
Following the suppression of insolvencies over the Covid period, the UK insolvency market is now buoyant with high volumes of Creditors Voluntary Liquidations. Compulsory liquidations have increased year on year and HMRC is a major petitioning creditor.
As anticipated by the Company, it can be seen from the tables above that these high levels of insolvency activity persist. The Board of Manolete believes that these conditions will continue to drive elevated levels of UK insolvencies and consequently the opportunity for Manolete.
New Case Enquiries
The new case enquiries graph below represents the levels of new case investment opportunities referred to Manolete between 1 April 2018 and 30 September 2025. The graph closely mirrors the shape of the UK insolvency market trend, shown above, with a relatively short time lag, as Office Holders require a reasonable period to investigate before they are in a position to present potential case opportunities to Manolete.
For this latest interim period, new case enquiries were 16% higher than the corresponding 6-month period of the prior financial year.
The 505 new case enquiries in H1 FY26 were 10% ahead of the Company's previous record of 459 in H2 FY25 and far in excess of the levels experienced before the pandemic impact in H2 FY21.
New Signed Cases
In H1 FY26, the level of new signed case investments continued to exceed the pre-pandemic level by some margin.
The total estimated gross proceeds to be generated by cases signed in H1 FY26 is £13.7m, a 31% increase from the figure of £8.1m H1 FY25. This marked upward trajectory is a very encouraging indicator of growth in realisations moving forward.
Case Completions
H1 FY26 saw an outstanding, record level of 146 case completions, a 7% increase over the 137 case completions recorded for H1 FY25 although as set out in the Finance Report below these were at a lower average value. The 146 completions in H1 FY26 include the partial completion across the 22 truck cartel cases. The average time for collection of all cash due from completed cases is 13 months.
As the Company emerged from the Covid downturn, newly signed case volumes recovered very positively but the average realised revenue value per case has been significantly lower than Manolete had been achieving prior to the onset of the Covid pandemic. This trend was a result of the first wave of high insolvency levels featuring a disproportionately larger number of smaller UK companies as they typically have less robust balance sheets, fewer financing options and are therefore less likely to withstand insolvency pressures.
The level of Administrations of larger companies has been slow to reach the higher pre-pandemic levels and the rate of increase in Administrations has been far more gradual than the very sharp increase in Creditors Voluntary Liquidations, the latter being the typical route to insolvency for smaller and medium size companies. There are exceptions, but the size of claim referred to Manolete tends to be determined by the size of the insolvent company. Compulsory liquidations are increasing. HMRC is often the petitioning creditor, and liquidations on HMRC winding up petitions may include high value claims resulting from tax avoidance, VAT fraud and payroll fraud, all areas where Manolete has a high degree of expertise and a good track record of successful realisations. The 31% increase in total estimated gross proceeds generated by new cases signed compared to the same period in FY25 is an encouraging sign of a return to larger cases.
A truck cartel claim was settled in this half year period and the settlement sum paid in full. Settlement discussions are ongoing on the remaining claims. Where settlement is not reached, Manolete will proceed to trial.
Strategy, Outlook and Team
The most significant factors in the first half of the financial year were the settlement of the first truck cartel claim combined with a lower average case settlement value during a quiet summer. Trading in September showed a marked improvement and this has continued into October. New case referrals remain buoyant, at close to record levels.
At the end of H1 FY26 Manolete had 446 live cases in-progress (413 live cases at the end of H1 FY24). Critically the total expected settlement value of the cases signed during H1 FY26 was 31% ahead of the same period last year. As previously stated the level of activity for Manolete is not linear and a number of higher value completions are expected over the coming months which will contribute to further realised revenues for the year.
The legal team is intrinsic to the continued growth and development of the business as its members source the case referrals and skilfully project manage signed cases to realisation. Two additional solicitors were recruited to the legal team in the half year period. It is expected that there will be further recruitment into the legal team to expand Manolete's share of the insolvency market.
Overall the Board remains confident in the prospects for the business, a return to higher average settlement values in the second half of the year and total realised revenues (excluding the cartel settlement) being weighted towards the second half.
The Board is grateful to the entire Manolete team for their hard work and dedication to the Company.
Dividend
The Board recommends no interim dividend be proposed for the six months to 30 September 2025.
Mena Halton
Chief Executive Officer
Finance Report
I am pleased to give my review of the Company's unaudited results for the half year to 30 September 2025.
Trading summary
6 months ended 30 September 2025
6 months ended 30 September 2024
Unaudited
Unaudited
£'000s
£'000s
Revenue
12,715
14,402
Cost of sales
(8,761)
(10,013)
Gross profit
3,954
4,389
Administrative expenses
(3,863)
(3,731)
Operating profit
91
658
KPI's
Gross profit margin %
31%
30%
Operating profit margin %
1%
5%
New cases (#)
146
126
Completed cases (#)*
146
137
Live cases at period end (#)
446
413
*Including partial realisations
The financial results for the 6 months to 30 September 2025 (H1 FY26) report an operating profit of £0.1m (H1 FY25 £0.7m). Revenue in H1 FY26 was £12.7m (H1 FY25 £14.4m) a decrease of 12% on the same period in the prior year.
Operationally, the business performed strongly and completed 146 cases (including partial completions of the 22 cartel case portfolio) compared to 137 cases in the 6-month period to 30 September 2024. A total of 146 new cases were signed (126 new cases, H1 FY25) and the Company continues to realise cash proceeds from both historic and current year completed cases.
Revenue
6 months ended 30 September 2025
6 months ended 30 September 2024
Unaudited
Unaudited
£'000s
£'000s
Realised revenue
13,983
15,035
Unrealised revenue
(1,268)
(633)
Revenue
12,715
14,402
Mix %
Realised revenue
110%
104%
Unrealised revenue
(10%)
(4%)
Revenue declined from £14.4m in H1 FY25 to £12.7m in H1 FY26, which was a result of a lower amount of large value case completions and a reduction in the fair value of the first settlement in the cartel portfolio and a write down of the remaining cartel portfolio which both served to significantly reduce unrealised revenues. We look at realised and unrealised revenue separately:
Realised revenue decreased from £15.0m H1 FY25 to £14.0m in H1 FY26, a decrease of 7%. Realised revenue includes the completion with a single manufacturer within the Company's cartel portfolio. After removing the partial completion of the cartel portfolio of 22 cases, case completions were 124 in comparison to 137 H1 FY25 which resulted in an average realised value of £64k per case in comparison to £109k H1 FY25.
Unrealised revenue decreased to (£1.3m) H1 FY26 compared with (£0.6m) in H1 FY25. A high level of new case signings generated £5.3m of unrealised revenue compared to new cases for the H1 FY25 of £4.0m and highlights the increased value of cases the Company is purchasing. Unrealised revenue was impacted by the conversion of the partial settlement of the cartel portfolio from unrealised revenue to realised revenue, which resulted in a write down of the fair value in relation to this single manufacturer of £0.8m. As part of the completion, the Company reviewed the remaining portfolio and determined a further write down to the fair value of the remaining Cartel portfolio totalling £1.1m, as previously noted in the July RNS.
Gross profit
6 months ended 30 September 2025
6 months ended 30 September 2024
Unaudited
Unaudited
£'000s
£'000s
Realised gross profit
5,222
5,022
Unrealised gross loss
(1,268)
(633)
Gross profit
3,954
4,389
Margin %
Realised gross profit
37%
33%
Unrealised gross profit
(100%)
(100%)
Gross profit margin %
31%
30%
Gross profit decreased from £4.4m in H1 FY25 to £4.0m in H1 FY26, primarily due to the negative effect of Unrealised revenue in the year.
Realised gross profit increased to £5.2m H1 FY26 (£5.0m H1 FY25), due to the partial completion of the cartel portfolio within the 6-month period. Realised gross profit margin has increased from 33% H1 FY25 to 37% in H1 FY26.
Unrealised gross profit of (£1.3m) H1 FY26 was a result of the increased value of new signed cases in the first six months of the year offset by the effect of the settlement with the first manufacturer in the cartel (a deduction from unrealised revenue as they are transferred to realised revenue) and a review of the carrying value of the remaining cartel portfolio.
Administrative expenses
Administrative expenses increased by 3.6% to £3.9m in the six months to 30 September 2025 (H1 FY25: £3.7m) which is principally attributable to an increase in provision for doubtful debt of specific debtors which are kept under constant review as well as a small increase in the expected credit loss provision in line with an increase in overall gross debtors.
Statutory operating profit
Operating profit decreased to £0.1m in H1 FY26 (H1 FY25: £0.7m) with an operating profit margin of 1% (H1 FY25: 5%).
Finance expense
Finance expense decreased to £755k in H1 FY26 (H1 FY25: £859k) due to the rates of the new revolving credit facility signed in March 25 being more favourable for the 6-month period to 30 September 2025.
Dividend
No interim dividend is proposed for FY26 (FY25 interim dividend, nil).
Investment in cases
The Company was managing 446 live case investments (including cartel cases) as at 30 September 2025, compared to 413 live cases (including cartel cases) as at 30 September 2024. The total fair value of investment in cases amounted to £40.3m as at 30 September 2025 (30 September 2024 £39.5m).
Investments in cases are shown at fair value, based on the Company's estimate of the likely future realised gross profit. Management, following discussion with the in-house legal team, on a case by case basis, amend the valuations of cases quarterly to accurately reflect management's view of fair value. In addition, at the year-end reporting period, a sample of material valuations are corroborated with the external lawyers working on the case who provide updated legal opinions as to the current status of the case. The Company does not capitalise any of its internal costs, these are fully expensed to the Statement of Comprehensive income.
Trade and other receivables
Trade and other receivables rose to £30.0m at 30 September 2025 from £29.3m at 30 September 2024, an increase of 2%. This amount is net of provision for bad debts. The Company has experienced a recent and small number of large debtors which have delayed payment and which are being actively pursued for payment.
Operational cashflows
6 months ended 30 September 2025
6 months ended 30 September 2024
Unaudited
Unaudited
£'000s
£'000s
Gross cash receipts
14,476
14,271
IP share & legal costs on completed cases
(6,645)
(6,678)
Cashflows from completed cases
7,831
7,593
Overheads
(3,907)
(3,145)
Net cash generated from operations before investment in cases and corporation tax
3,924
4,448
Corporation tax
-
-
Investment in cases
(2,956)
(3,306)
Net cash generated from operations
968
1,142
Gross cash receipts of £14.5m in H1 FY26 (£14.3m H1 FY25) includes the gross cash receipt from the settlement with a single manufacturer in the cartel portfolio.
In this 6-month period, the Company only utilised internally generated cash resources to invest in new and existing cases.
Debt financing
The Company had net debt of £10.8m with a drawn down balance of £12.5m (£12.5m H1 FY25) of its £17.5m HSBC loan facility as at 30 September 2025. During H1 FY26 the Company received a significant cash receipt on settlement with a single manufacturer in the cartel portfolio, however a number of defaults have meant the Company loan draw down remains the same. The Company held cash reserves of £1.1m as at 30 September 2025 and had £5.0m available of the £17.5m HSBC facility. This facility and cash reserves will be used to fund future growth in case volumes.
Rachel Lindley-Janes
Head of Finance
Unaudited Statement of Comprehensive Income for the period ended 30 September 2025
6 months ended 30 September 2025
6 months ended 30 September 2024
Year ended 31 March 2025
Unaudited
Unaudited
Audited
Note
£'000s
£'000s
£'000s
Revenue
3
12,715
14,402
30,481
Cost of sales
(8,761)
(10,013)
(20,050)
Gross Profit
3,954
4,389
10,431
Administrative expenses
4
(3,863)
(3,731)
(7,463)
Operating Profit
91
658
2,968
Finance income
6
16
22
Finance expense
5
(755)
(859)
(1,643)
(Loss) / Profit before tax
(658)
(185)
1,347
Taxation
182
(33)
(454)
(Loss) / Profit and total comprehensive income for the period attributable to the equity owners of the Company
(476)
(218)
893
Earnings per share attributable to equity owners of the Company
Basic (pence per share)
11
(1.09p)
(0.49p)
2.04p
Diluted (pence per share)
11
(1.09p)
(0.49p)
2.01p
The above results were derived from continuing operations.
Unaudited Statement of Financial Position at 30 September 2025
Company Number: 07660874
30 September 2025
30 September 2024
31 March 2025
Unaudited
Unaudited
Audited
Note
£'000s
£'000s
£'000s
Non-current assets
Investments
6
10,143
11,291
11,340
Trade and other receivables
9
10,102
12,078
12,190
Deferred tax asset
497
1,093
278
Total non-current assets
20,742
24,462
23,808
Current assets
Investments
6
30,151
28,251
30,110
Trade and other receivables
9
19,881
17,207
19,372
Corporation tax asset
98
-
-
Cash and cash equivalents
1,061
636
692
Total current assets
51,191
46,094
50,174
Total assets
71,933
70,556
73,982
EQUITY AND LIABILITIES
Equity
Share capital
175
175
175
Share premium
196
157
157
Share based payment reserve
1,189
1,351
1,153
Retained earnings
39,480
38,845
39,956
Total equity attributable to the equity owners of the company
41,040
40,528
41,441
Non-current liabilities
Trade and other payables
10
6,140
7,643
7,584
Borrowings
11,883
12,500
11,762
Total non-current liabilities
18,023
20,143
19,346
Current liabilities
Trade and other payables
10
12,870
9,781
13,195
Current tax liabilities
-
104
-
Total current liabilities
12,870
9,885
13,195
Total liabilities
30,893
30,028
32,541
Total equity and liabilities
71,933
70,556
73,982
The interim statements were approved by the Board of Directors and authorised for issue on 19 November 2025.
Unaudited Statement of Changes in Equity for the period ended 30 September 2025
Share Capital
Share Premium
Share based payment reserve
Retained Earnings
Total Equity
£000s
£000s
£000s
£000s
£000s
As at 1 April 2024 (unaudited)
175
157
1,076
39,063
40,471
Comprehensive Income
Profit and total comprehensive loss
-
-
-
(218)
(218)
Transactions with owners
Share based payment expense
-
-
191
-
191
Deferred tax on share-based payments
-
-
84
-
84
As at 30 September 2024 (unaudited)
175
157
1,351
38,845
40,528
Comprehensive Income
Profit and total comprehensive income
-
-
-
1,111
1,111
Transactions with owners
Share based payment expense
-
-
92
-
92
Deferred tax on share-based payments
-
-
(290)
-
(290)
As at 31 March 2025 (audited)
175
157
1,153
39,956
41,441
Comprehensive Income
Loss and total comprehensive loss
-
-
-
(476)
(476)
Transactions with owners
Share based payment expense
-
-
(60)
-
(60)
Share options exercised
-
39
(39)
-
-
Deferred tax on share-based payments
-
-
135
-
135
As at 30 September 2025 (unaudited)
175
196
1,189
39,480
41,040
Unaudited Statement of Cashflows for the period ended 30 September 2025
6 months ended 30 September 2025
6 months ended 30 September 2024
Year ended 31 March 2025
Unaudited
Unaudited
Audited
Note
£'000s
£'000s
£'000s
(Loss)/ Profit before tax
(658)
(185)
1,347
Adjustments for other operating items:
Adjustments for non-cash items
8
4,800
4,993
7,515
Operating cashflows before movements in working capital
4,142
4,808
8,862
Changes in working capital:
Net (decrease) / increase in trade and other receivables
1,579
(5)
(2,283)
Net (decrease) / increase in trade and other payables
(1,796)
(355)
2,814
Net cash generated from operations before corporation tax and investment in cases
3,925
4,448
9,393
Corporation tax paid
-
-
-
Investment in cases
6
(2,955)
(3,306)
(6,865)
Net cash generated from operating activities
970
1,142
2,528
Cash flows from investing activities
Finance income received
6
16
22
Net cash generated from investing activities
6
16
22
Cash flows from financing activities
Proceeds from borrowings
4,000
500
500
Repayments of borrowings
(4,000)
(1,750)
(1,750)
Interest paid
(607)
(724)
(1,330)
Loan arrangement fees
-
-
(730)
Net cash used in financing activities
(607)
(1,974)
(3,310)
Net increase / (decrease) in cash and cash equivalents
369
(816)
(760)
Cash and cash equivalents at the beginning of the year
692
1,452
1,452
Cash and cash equivalents at the end of the period
1,061
636
692
Unaudited notes to the financial statements for the period ended 30 September 2025
1 Company information
Manolete Partners PLC (the "Company") is a public company limited by shares incorporated in England and Wales. The Company is domiciled in England and its registered office is 2-4 Packhorse Road, Gerrards Cross, Buckinghamshire, SL9 7QE. The Company's ordinary shares are traded on the AIM Market.
The principal activity of the Company is that of acquiring and funding insolvency litigation cases.
2 Accounting policies
(a) Basis of preparation
The half-yearly financial statements do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.
The interim condensed financial statements for the six months ended 30 September 2025 have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim condensed financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's annual financial statements as at 31 March 2025.
The statutory accounts for the year ended 31 March 2025 have been filed with the Registrar of Companies at Companies House. The auditor's report on the statutory accounts for the year ended 31 March 2025 was unqualified and did not contain any statements under Section 498 (2) or (3) of the Companies Act 2006.
(b) Going concern
The interim financial statements relating to the Company have been prepared on the going concern basis. The company has met each of its quarterly bank covenants during the six months in H1 FY26 and is expected to do so in the coming 12 months from signing of the interim financial statements.
After making appropriate enquires, the Directors of the Company have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and for at least one year from the date of the approval of the interim financial statements. In reaching this conclusion, the Directors have considered the position with respect to covenant compliance, short-term cash forecasts, the general environment with respect to number of insolvencies in the UK economy. For these reasons, they continue to adopt the going concern basis in preparing the Company's interim financial statements.
(c) Revenue recognition
Revenue comprises two elements: the movement in fair value of investments and realised consideration.
Realised consideration occurs when a case is settled, or a Court judgment received. This is an agreed upon and documented figure.
The movement in the fair value of investments is recognised as Unrealised gains within Revenue. This is management's assessment of the increase or decrease in valuation of an open case, the inclusion of value for a new case and the removal of the fair value of a completed case. These valuations are estimated following the progress of a case towards completion and also reflect the judgement of the legal team working on the case (see Note 2(d). Significant Judgements and Estimates). Hence, unrealised revenue is the movement in the fair value of the investments in open cases over a period of time.
When a case is completed the carrying value is a deduction to unrealised income and the actual settlement value is recorded as realised revenue.
Revenue recognition differs between a purchased case, where full recognition of the settlement is recognised as revenue (including the insolvent estate's share) and a funded case where only the Company's share of a settlement is recognised as revenue. This differing treatment arises because the Company owns the rights to the purchased case.
As revenue relates entirely to financing arrangements, revenue is recognised under the classification and measurement provisions of IFRS 9.
(d) Significant judgements and estimates
The preparation of the Company's interim financial statements in accordance with UK adopted International Accounting Standards requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the statement of financial position date, amounts reported for revenues and expenses during the period, and the disclosure of contingent liabilities at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the assets or liabilities affected in the future.
Estimates and judgments are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are detailed below.
Valuation of investments
Investments in cases are categorised as fair value through profit or loss. Fair values are determined on the specifics of each investment and will typically change upon an investment progressing through a key stage in the litigation process in a manner that, in the directors' opinion, would result in a third party being prepared to pay an amount different to the original sum invested for the company's rights in connection with the investment. Due to the nature of Manolete's business model, an unrealised fair value gain will be recognised on initial investment in a case. Thereafter, positive material progression of an investment will give rise to an increase in fair value and an adverse progression a decrease.
The key stages that an individual case passes through typically includes: initial review on whether to make a purchase or funding offer presented to the Investment Committee, once a claim is assigned external solicitors are instructed. Pre action protocols are then followed with a strong emphasis on ADR. Where pre actions settlement is not achieved proceedings are issued, but the parties have an ongoing duty to engage in ADR.rom Most claims are settled either before or after issue of proceedings with few claims proceeding to trial. The progress of a case feeds into the internal legal team valuations of that case each month, as set out below.
In accordance with IFRS 9 and IFRS 13, the Company is required to recognise live case investments at fair value at the half year and year end reporting periods, at 30 September and 31 March each year.
The Company undertakes the following steps:
• Every two weeks, the internal legal team report developments into the Investment Committee on a case-by-case basis in writing.
• On a quarterly basis, the legal team adjust case fair values depending upon objective case developments, for instance: an offer to settle, mediation agreed, positive or negative legal advice. These adjustments to fair value may be an increase or decrease in value or no change required;
• At reporting period ends, a sample of open case investments for which written assessments are obtained from external solicitors or counsel instructed on the case on behalf of the Company.
In all cases, a headline valuation is the starting point of a valuation from which a discount is applied to reflect legal advice obtained, strength of defendant's case, the likely amount a defendant might be able to pay to settle the case, progress of the case through the legal process and settlement offers.
Movements in fair value on investments in cases are included within revenue in the Statement of Comprehensive Income. Fair value gains or losses are unrealised until a final outcome or stage is reached. At 30 September 2025 there were 446 open cases, of these 385 had a valuation of less than £100k. These cases are not expected to have an individually material impact on the business when they are settled. The remaining 62 cases make up £23.5m of the investments and are material to the business, the significant judgements and estimates in their valuations at the balance sheet date were as follows:
1. Judgements:
1.1 The amount that cases are discounted to recognise cases being settled before they are taken to trial, based on the facts of each case and management's judgement of the likely outcome.
1.2 Litigation is inherently uncertain. The Company seeks to mitigate its risk by: seeking to settle cases as early as possible. Nevertheless, the risk and uncertainty can never be completely removed. The key inputs are: the headline claim value, the likely settlement value, the opposing party's ability to pay and the likely costs in achieving judgment. These inputs are inter-related to an extent.
1.3 The Company accrues for future legal costs on the basis that cases will be settled before trial which is how the vast majority of cases completed to date have been settled. When it becomes clear a case will progress all the way to trial then the additional costs are accrued at this point on a case-by-case basis.
1.4 The Company classifies all legal cases (non-cartel) as current assets as the intention and expectation is to reach a settlement within 12 months. Cartel cases are classified as non-current assets as the legal process for these Competition Law cases is a longer-term process except where settlement negotiations have commenced.
2. Estimates:
2.1 All cases will be subject to the internal key stages and regular fair value review processes as described above. For the avoidance of doubt, the fair value review requires an estimate to be made by senior management based upon the facts and progress of the case and their experience. On an annual basis, for a sample selected by Management, an external opinion is requested from counsel or a solicitor who is working on the case which provides an independent description of the merits of the case.
These assessments include various assumptions that could change over time and lead to different assessments over the next 12 months.
2.2 Future legal costs have been estimated on the estimated time the case will take to complete and whether it will go to trial. Future results could be materially impacted if these original estimates change either positively or negatively.
2.3 Recovery of debts is based on the Company's ability to recover assets owned by the counterparty. Prior to case acceptance, a net worth review of the defendant is undertaken to assess whether they own sufficient assets to support the claim value. Debts due under settlement agreements are typically paid in full, whilst judgment debts are less predictable in terms of full recovery.
2.4 The valuations assume that there is no recovery for interest and costs except for the cartel cases which do assume a figure for both costs recovery and interest charge. If cases go to trial and result in a judgment in the Company's favour, it is likely that the Company will be awarded interest and costs. Interest will accrue on a judgment debt at a rate of 8% per annum.
Sensitivity analysis has not been included in the financial statements, due to the vast amount of inputs and number of variables which are inherently specific to each case, making it impossible to provide meaningful data. Whilst the Board considers the methodologies and assumptions adopted in the valuation are supportable, reasonable and robust, because of the inherent uncertainty of valuation, it is reasonably possible, on the basis of existing knowledge, that outcomes within the next financial year are different from the assumptions could require a material adjustment to the carrying amount of the £40.3m of investments disclosed in the balance sheet (Note 6). However, as an indication we note that a 10% increase/(decrease) in the fair value of our top 20 cases (excluding cartel cases) would result in an increase/(decrease) in the fair value investment of +/- £1.1m.
Approach to cartel case valuation:
Following publication of the ruling in respect of an EU Competition test case (the "BT / Royal Mail" case) we requested that our independent expert valuation firm apply the assumptions contained within the test case ruling to the valuation of Manolete's 22 cartel cases. Following the ruling and the receipt of further case data, the directors consider that additional discounting, or the use of a "tier based" system is no longer required and the year-end valuation therefore represents Manolete's percentage ownership of the overall case valuation. In HY26 Manolete completed settlement with a single manufacturer, the revised fair value includes realisation of the elements relating to the manufacturer and a Company review of the remaining portfolio. Following the completion in FY26, the remaining cartel case carrying valuation as at 30 September 2025 was £10.1m (HY25 £15.0m).
Recoverability of trade receivables
The Company's business model involves the provision of services for credit. The Company normally receives payment for services it has provided once a claim has been pursued and settled or decided in Court. The average time from taking on a case to settlement is c.13.7 months although this can vary significantly from case to case. As part of the settlement agreement, the timing of payment of the settlement sum by the defendant to the Company is agreed and this is a legally binding document. Settlement terms can provide for lump sum payment or payment by agreed instalments.
As such, Management applies a number of estimates and judgements in the recording of trade receivables, for example: in relation to judgements, Management assess the likely recoverability and do not necessarily recognise the full judgment debt.
The Company applies the simplified approach in providing for expected credit losses under IFRS 9 which allows the use of the lifetime expected credit loss provision for all trade receivables. In measuring the expected credit losses, trade receivables have been stratified by settlement type and days past due. Expected lifetime expected credit loss rates are based on the payment profiles of completed cases from April 2022 to February 2025. The Company attempts to assess the probability of credit losses but seeks to mitigate its credit risk by undertaking rigorous net worth checks before taking on a case. Occasionally credit defaults do occur when counterparties default on an agreed settlement payable by instalments. There is a concentration risk in relation to the trade receivable of £6.6m which relates to a large case completion in FY21. Based on Management's assessment of the receivable no provision has been recognised against this balance.
Recovery of receivables is closely monitored by Management and action, where appropriate, will be taken to pursue any overdue payments. The Company seeks to obtain charging orders over the property of the debtors as security where possible. The receivables' ageing analysis is also evaluated on a regular basis for potential doubtful debts. Where potential doubtful debts are identified specific bad debt provisions are held against these. It is the Directors' opinion that no further provision for doubtful debts is required. Please see note 9 of the interim accounts.
3 Segmental reporting
During the six months ended 30 September 2025, revenue was derived from cases funded on behalf of the insolvent estate and cases purchased from the insolvent estate, which are wholly undertaken within the UK. Where cases are funded, upon conclusion, the Company has the right to its share of revenue; whereas for purchased cases, it has the right to receive all revenue, from which a payment to the insolvent estate is made. Revenue arising from funded cases and purchased cases are considered one business segment and are considered to be the one principal activity of the Company. All revenues derive from continuing operations and are not seasonal in nature.
Net realised gains on investments in cases represents realised revenue on completed cases.
Fair value movements include the increase / (decrease) in fair value of open cases, the removal of the carrying fair value of realised cases (in the period when a case is completed and recognised as realised revenue) and the addition of the fair value of new cases.
6 months ended 30 September 2025
6 months ended 30 September 2024
Year ended 31 March 2025
Unaudited
Unaudited
Audited
£'000s
£'000s
£'000s
Net realised gains on investments in cases
13,983
15,035
29,475
Fair value movements (net of transfers to realisations)
(1,268)
(633)
1,006
Revenue
12,715
14,402
30,481
Arising from:
Purchased cases
12,353
14,356
29,807
Funded cases
362
46
674
Revenue
12,715
14,402
30,481
4 Analysis of expenses by nature
Internal legal costs are included within administrative expenses whereas external legal costs are either capitalised as Investments for open cases or recognised as cost of sales on completed cases. The breakdown by nature of administrative expenses is as follows:
6 months ended 30 September 2025
6 months ended 30 September 2024
Year ended 31 March 2025
Unaudited
Unaudited
Audited
£'000s
£'000s
£'000s
Staff costs, including pension and healthcare costs
2,183
2,319
4,338
Bad debts including expected credit losses
679
475
1,343
Professional fees
461
404
718
Marketing costs
193
194
323
Other costs, including office costs
347
339
741
Total administrative expenses
3,863
3,731
7,463
5 Finance expense
6 months ended 30 September 2025
6 months ended 30 September 2024
Year ended 31 March 2025
Unaudited
Unaudited
Audited
£'000s
£'000s
£'000s
Bank loan charges
692
758
1,485
Other loan interest
63
101
158
Total finance expense
755
859
1,643
6 Investments
Investments represent the expected gross profit generated on the Company's ongoing portfolio of cases on settlement. This incorporates the expected gross settlement less the costs incurred to initially purchase the claim, costs incurred to date, expected future costs, and the share of net gain due to the Insolvency Practitioner.
6 months ended 30 September 2025
6 months ended 30 September 2024
Year ended 31 March 2025
Unaudited
Unaudited
Audited
£'000s
£'000s
£'000s
Investments brought forward
41,450
40,196
40,196
Prepaid cost additions on live cases
2,955
3,306
6,865
Realised prepaid costs
(2,843)
(3,327)
(6,617)
Fair value movement (net of transfers to realisations)
(1,268)
(633)
1,006
Total investments
40,294
39,542
41,450
Current
30,151
28,251
30,110
Non-current
10,143
11,291
11,340
Total investments
40,294
39,542
41,450
7 Analysis of fair value movements
6 months ended 30 September 2025
6 months ended 30 September 2024
Year ended 31 March 2025
Unaudited
Unaudited
Audited
£'000s
£'000s
£'000s
New case investments
5,292
3,981
10,090
Increase in existing case fair value (exc. cartel cases)
3,231
2,117
1,556
Decrease in existing case fair value (exc. cartel cases)
(3,068)
(2,602)
(2,375)
Case completions
(1,900)
(4,115)
(8,245)
Decrease in fair value attributable to cartel cases
(4,823)
(14)
(20)
Fair value movement (net of transfers to realisations)
(1,268)
(633)
1,006
8 Non-cash adjustments to cashflows generated from operations
6 months ended 30 September 2025
6 months ended 30 September 2024
Year ended 31 March 2025
Unaudited
Unaudited
Audited
£'000s
£'000s
£'000s
Fair value movements (net of transfers to realisations)
1,268
633
(1,006)
Legal costs on realised cases
2,843
3,326
6,617
Finance expense
755
859
1,643
Share based payments
(60)
191
283
Finance income
(6)
(16)
(22)
Non-cash adjustments to cashflows generated from operations
4,800
4,993
7,515
9 Trade and other receivables
30 September 2025
30 September 2024
31 March 2025
Unaudited
Unaudited
Audited
£'000s
£'000s
£'000s
Amounts falling due in more than one year:
Trade receivables Contract asset
7,672 2,430
9,738 2,340
9,423 2,767
Trade and other receivables due in more than one year
10,102
12,078
12,190
Amounts falling due within one year:
Gross trade receivables
25,632
23,962
25,549
Less:
Specific provisions
(4,560)
(4,832)
(5,043)
Allowance for expected credit loss
(1,327)
(2,054)
(1,321)
Trade receivables
19,745
17,076
19,185
Prepayments
136
131
187
Trade and other receivables due within one year
19,881
17,207
19,372
10 Trade and other payables
30 September 2025
30 September 2024
31 March 2025
Unaudited
Unaudited
Audited
£'000s
£'000s
£'000s
Amounts falling due in more than one year:
Accruals - direct costs Contract liability
4,318 1,822
5,911 1,732
5,600 1,984
Total trade and other payables due in more than one year
6,140
7,643
7,584
Amounts falling due within one year:
Trade payables
640
907
1,450
Accruals - direct costs
11,047
7,797
10,332
Other creditors
1,031
950
1,280
Other taxation and social security
152
127
133
Total trade and other payables due within one year
12,870
9,781
13,195
11 Earnings Per Share
The Basic Earnings Per Share is calculated by dividing the profit attributable to ordinary equity holders by the weighted average number of ordinary shares outstanding during the period. Diluted Earnings Per Share is calculated by dividing the profit after tax by the weighted average number of shares in issue during the period, adjusted for potentially dilutive share options. The following reflects the income and share data used in the Earnings Per Share calculation:
6 months ended 30 September 2025
6 months ended 30 September 2024
Year ended 31 March 2025
Unaudited
Unaudited
Audited
£'000s
£'000s
£'000s
Profit and total comprehensive income for the period attributable to the equity owners of the Company
(476)
(218)
894
Weighted average number of ordinary shares
43,810,966
44,135,972
43,777,359
Basic Earnings Per Share
(1.09p)
(0.49p)
2.04p
Diluted weighted average number of ordinary shares
43,810,966
45,128,057
44,490,399
Diluted Earnings Per Share
(1.09p)
(0.49p)
2.01p
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