Full year audited results for the year ended 30 June 2023

Highlights

• LCM delivered record results during the year with realised income of A$181m with A$84m directly attributable to LCM
• Transition to Fair Value accounting, providing greater transparency with respect to the underlying value of our portfolio of investments now valued at A$428m*
• Material resolutions achieved in Fund I delivered strong performance metrics and increased the cash balance of LCM to A$83m as at 30 June 2023
• Fund II had a final close of US$291m with capital commitment at A$123m as at 30 June 2023 and A$148m as at 31 August 2023
• Total Funds under Management stand at A$0.66bn
• Assets under Management (AuM) were A$484m at 30 June 2023 with further commitments in Fund II bringing our AuM to A$553m at 31 August 2023
• Overall Capital commitments were up significantly on the same prior year period at A$176m
• The Company ended the period with A$104.5m of gross cash of which A$83m was attributable to LCM compared with FY22 A$50m of gross cash of which A$29m was attributable to LCM
• LCM declares a dividend of 2.25p per share for the full year ended 30 June 2023
• PFAS settlement approved by the Court post period end will contribute a further c. A$10m realised income which translates to cash directly attributable to LCM into FY24

(Capital commitment means the total estimate of an investment)

*A$428m inclusive of A$37m legacy investments held at cost

Other

• The Company also announces that it intends to commence a A$10 million share buyback programme covering an aggregate contract term of approximately twelve months. The Company will continue to assess how best to provide value to shareholders.
• Given the improved financial position of the Company’s balance sheet over the past two years, LCM is exploring a sterling retail eligible bond listed on the ORB at the London Stock Exchange. The Company expects to announce a fixed income roadshow in due course. Proceeds raised from the retail bond will optimise our cost of capital and allow us to take advantage of opportunities we see in the market.

Commenting on the results, Patrick Moloney, CEO of Litigation Capital Management, said: “Our fund management strategy is delivering third party capital for investment. Our referral network in Europe and APAC is delivering the high-quality investment opportunities that will underpin our generation of value and cash to Fund investors and LCM shareholders. As we continue to grow, increased activity levels will not need to be matched with proportionate increases in overall costs and this in turn means greater profitability and cash generation. This is a critical differentiator for LCM.”

News in full

In the interview below LCM’s CEO Patrick Moloney outlines the Group’s performance and business model at last years Year End Results