Interim results for the half year ended 31 December 2023

Highlights

• Total realisations of A$28.4m, with concluded case investments generating a 3.3x multiple of cash invested
• Realisations include performance fees of A$10.2m on concluded cases as the benefits of our fund management model are realised
• Total income from litigation assets of A$21.9m, an increase from A$10.1m in HY23
• Net Profit after tax for the period of A$7.3m, compared to a loss of A$2.3m in HY23
• Net assets of A$185.4m as at 31 Dec 23 with cases conservatively valued at 2.0x cash invested
• 50% increase in applications for funding reflecting countercyclical nature of the business
• Total new commitments of A$90m added in the period
• Fund I which comprises US$150m of external capital is fully committed and Fund II which comprises US$291m of external capital is 35% committed at 29 Feb 24
• A$3.36m* share buy backs to 15 March 2024, 1.7m shares

Outlook

• The Company is well positioned to take advantage of a sector that is rapidly gaining traction amidst consolidation amongst competitors
• Expectation Fund II will be fully committed and Fund III launched within the next 12 months

*1 converted at 1.94 GBP to AUD

Commenting on the results, Patrick Moloney, CEO of Litigation Capital Management, said: “These results demonstrate the opportunity that now presents itself for LCM. Having built a strong foundation for its fund management business, we are now seeing the benefits of it come to fruition. Fund I is already delivering strong returns, and we expect to fully commit Fund II as well as launch a new fund this year.”

“At a time when demand for dispute finance is increasing, LCM is extremely well placed to take advantage of this opportunity. This set of results demonstrates that LCM has the knowledge and expertise to make sound investment decisions and deliver for shareholders and fund investors alike.”

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