Trading Update

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: [phone]
Jonny Franklin-Adams, Isaac Hooper and Rory Sale (Corporate Finance) Tim Redfern, Jamie Anderson (Corporate Broking)
Canaccord (Joint Broker)	Tel: [phone]
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

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.

 

END