The Directors present their report (referred to hereafter as the “Interim Financial Report”), together with the financial statements, on the consolidated entity (referred to hereafter as the “consolidated entity” or “the Group”) consisting of Omni Bridgeway Limited (referred to hereafter as “OBL”, “the Company” or “the Parent”) and the entities it controlled at the end of, or during, the half year ended 31 December 2023.
Directors
The names of the Company’s Directors in office during the half year ended 31 December 2023 and until the date of this report are as below. Unless stated otherwise, the Directors were in office for this entire period.
Michael Kay – Non-Executive Chairman
Andrew Saker – Managing Director & CEO (retired 26 October 2023)
Raymond van Hulst – Managing Director & CEO (appointed 26 October 2023), former Executive Director and Co-Chief Investment Officer – EMEA
Michael Green – Non-Executive Director
Karen Phin – Non-Executive Director
Christine Feldmanis – Non-Executive Director
Highlights for the half year ended 31 December 2023
Operational highlights1
- US$485 million2 first close of Fund 4 and Fund 5 series II capital raise on improved cost coverage terms.
- €135 million first tranche of debt capital raised for our €300 million Fund 8, focused on global enforcement investments.
- Significant expansion of our capabilities in the UK, the world’s second largest litigation finance market.
- Investment income of $235.7 million, including income yet to be recognised, with $50.1 million provisionally attributable to OBL.
- 12 full completions, 6 partial completions, and a secondary market transaction achieving an overall MOIC of 2.4x, and an IRR of 55%.
- US$21.5 million cash proceeds from the sale of a 25% interest in a portfolio of 15 intellectual property (IP) investments in Fund 4.
- $260 million of new investment commitments with 38% improved pricing on FY23.
- $182 million strong pipeline of new investment opportunities representing a further 29% of our commitments target for the year ending 30 June 2024.
- Possible investment completions with an estimated portfolio value (EPV) of $5.1 billion over the next 12 months (rolling period).
- Total cash and receivables of $291.2 million; OBL only cash and receivables of $122.4 million ($80.9 million in OBL balance sheet cash and $40.1 million of OBL share of cash and receivables within Funds), plus $60 million in undrawn debt.
Financial highlights3
- Total income of $135.8 million (including a net gain on deconsolidation of the Fund 4 IP portfolio) derived from diversified sources comprising litigation completions, a secondary market sale, management fees, and interest revenue.
- Group profit after tax (before non-controlling interests (NCI)) of $33.4 million (1H23: $30.1 million loss after tax); with $47.6 million loss attributable to OBL (the Group’s equity holders) and $81.0 million profit attributable to NCI.
- Employee expenses of $34.4 million decreased 12% due to team optimisation, a reduction in contractors and higher capitalised costs of investment managers.
- Corporate overheads of $9.0 million increased 4% due mainly to the amortisation of the Fund 8 insurance premium, notwithstanding significant reductions in other corporate overhead expenses.
- Carrying value of litigation investments of $654.7 million (30 June 2023: $596.7 million) across 285 funded litigation investments. Negative case developments including lower than anticipated income, extended duration and adverse milestones associated with a funded law firm portfolio have resulted in a $44.9 million reduction of the carrying value.
1 Represents non-IFRS information. Here Fund 5 is presented at 100% for consistency of presentation across OBL’s Funds.
2 Inclusive of OBL’s co-funding (OBL’s commitment of US$100 million to each Series II fund is capped at 20% of the ultimate fund size (i.e. after further closings).
3 Per the Group Consolidated Financial Statements.
The full Interim Financial Report can be read here.
The full 1H24 results Investor Presentation can be read here.
