Litigation Capital Management (LCM) Limited (AIM:LIT), a leading international provider of litigation financing solutions, announces its reviewed interim results for the six months ended 31 December 2018.
Note: All financial results based on cash accounting methods, as opposed to fair value methods. Any gains or losses are only recognised in LCM’s accounts when a successful judgement or settlement has been determined.
Highlights
- Adjusted profit before tax of A$2.72 million – increase of 268% (H1 2018: adjusted loss $1.62 million)
- Adjusted revenue of A$11.71 million – increase of 11,498% (H1 2018: A$0.10 million)
- Continued strong litigation project performance, with three projects completing in the period, and consistent with existing track record:
- Portfolio IRR of 78% (on a cumulative basis since FY 2012, including losses)
- ROIC of 117% (on a cumulative basis since FY 2012, including losses)
- Strong pipeline of potential future litigation projects, diversified by litigation type and geography – 64 pre-qualified projects with estimated investment of A$409 million
- Diversification in pipeline across geography (Australia, EMEA and Asia Pacific) as well as across single case, portfolio and corporate transactions
- Future litigation projects include class action, commercial claims, insolvency, international arbitration, and corporate transactions
- Funded first corporate portfolio transaction in October 2018 in the building and construction sector. Corporate transactions represent a growth opportunity for LCM, as the Company is currently considering eight significant corporate portfolio transactions as part of its pipeline of investment opportunities
- LCM is now a truly global litigation finance provider following the launch of offices in London (covering EMEA) and Singapore (covering Singapore and Hong Kong), with both regions representing a significant growth opportunity for LCM going forward
- Completion of listing on AIM in December 2018 and delisting from ASX
- Significant strengthening to management team and board through the appointments of Nick Rowles-Davies as Executive Vice Chairman, Stephen Conrad as Chief Financial Officer and Jonathan Moulds as Non-Executive Director
Patrick Moloney, CEO of LCM, said:
“We are delighted to present our first set of financial results as an AIM-listed company. The strength of our performance is reflective of the consistent approach and focus we have ensuring that we continue to deliver strong returns across our existing portfolio. We have significantly expanded our operations to create a truly global platform for LCM.
“Our listing on the London Stock Exchange was a key milestone for the company and raised necessary capital to help fund future litigation projects and investments. Since LCM has become a London listed company, we have already seen a notable increase in the litigation funding products that we offer across the mix – including single case, portfolio and corporate transactions.
“Our geographical expansion, with new offices in both London and Singapore, has naturally seen the team grow and industry leading experienced individuals have been added to the Board and senior management team. This has created a strong foundation for LCM to continue to pursue exciting growth opportunities and maintain its position as a leader in the growing litigation finance market.”
About LCM
- LCM is a leading international provider of litigation financing solutions
- This includes single-case and portfolio; across class actions, commercial claims, claims arising out of insolvency and international arbitration
- LCM has an unparalleled track record, driven by effective project selection, active project management and robust risk management
- Headquartered in Sydney, with offices in London, Singapore, Brisbane and Melbourne, LCM listed on AIM in December 2018, trading under the ticker LIT
