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Announcements Commercial

Manolete Partners Releases Audited Results for FY23

Manolete (AIM:MANO), the leading UK-listed insolvency litigation financing company, today announces its audited results for the year ended 31 March 2023. 

Steven Cooklin, Chief Executive Officer, commented:

“The annual results for FY23 mask a picture of two very different six-month periods for the Company: the first half of the trading year was subdued, as the Company had only just begun to emerge from the ending, in April 2022, of the temporary suspension of certain important insolvency laws that the UK Government had instigated in June 2020 in response to the COVID-19 pandemic. While normal insolvency laws resumed at the start of the financial year, there is always a natural time lag between insolvencies commencing and the associated litigation claims being referred to Manolete, as Liquidators and Administrators need time to conduct their regulatory investigations before they can assemble cases for consideration by us. The second half saw a strong resumption of the growth that the Company had exhibited prior to the pandemic, as the UK Insolvency Market returned to normal operations with a strong recovery in cases being referred to us. 

Given the fact that we enjoyed only the latter six months of more “normal” trading, the results are highly commendable given the loss made in H1 and recovery in H2. We had a record number of 798 new case enquiries and a record number of 263 new case investments; gross cash receipts from completed cases were at a record level of £26.7m and a new record was also set with 193 cases being legally completed in the 12-month period. We ended the year with another record number of 351 live cases in progress and the Company returning to profitability in the second half.

These positive KPIs have continued into the current FY24 – with signed cases for the first two months of FY24 being 154% higher than the first two trading months of the FY23. Consequently, we have added, and continue to add, to our expert in-house legal and financial analyst teams to address the increased level of demand for our insolvency litigation solutions. With prevalent headwinds of inflation and significantly higher interest rates facing the UK economy, the Company is well set for continued growth over the foreseeable future”.

Financial (statutory and non-statutory) highlights:

  •     Realised revenues on completed cases were £26.8m, an increase of 76% (FY22: £15.2m) although FY23 contained an exceptionally large funded case completion of which £4.9m was recorded in realised revenue (total settlement £9.5m).
  •     129% of total revenues represented by realised revenues on fully completed cases (FY22: 77%) offset by negative unrealised revenues.
  •     Increase in the valuation of the cartel cases contributed £1.2m to gross profit in FY23 (FY22: £5.1m).
  •     EBIT reduced by 159% to a loss of £(3.1)m (FY22: £5.3m) a result of pressure on valuations in H1 FY23 on existing cases and a single rare larger case loss at trial.
  •     The Company made a loss before tax of £(4.0)m (FY22: £4.5m profit).
  •     Gross cash receipts from completed cases were £26.7m, an increase of 72% (FY22: £15.5m).
  •     The Company’s retained share of gross cash receipts from completed cases (after all legal costs and payments to Insolvent Estates) was £13.1m, an increase of 47% (FY22: £8.9m).
  •     Cash generated from operations (after all completed case costs and all overheads but before new case investments and taxation) was £8.0m (FY22: £4.4m).
  •     Gross cash of £0.6m and borrowings of £10.5m (FY22: £2.2m and £13.5m) as at 31 March 2023 and £14.5m unutilised funds available on the Revolving Credit Facility with HSBC.
  •     Final dividend of nil per share. 

Operational highlights:

  •     New case investments in UK insolvency cases, an increase of 65%: 263 in FY23 (FY22: 159).
  •     Based on unaudited internal management information: ROI of 125% and Money Multiple of 2.2x from 689 completed cases since inception
  •     Based on unaudited internal management information: 193 cases were completed in FY23 (FY22: 139 cases), with an average duration per case of 15.5 months (FY22: 13.2 months), generating a Money Multiple of 1.9x (FY22: 1.87) and an IRR of 131% (FY22: 132%)
  •     Average case duration across the full portfolio of 689 completed cases is 12.8 months
  •     29% increase in live cases: 351 in process as at 31 March 2023 (272 as at 31 March 2022)

A copy of the annual report and accounts will be available on the Company’s website shortly and will be posted to shareholders in due course.

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Announcements Consumer

Legal Bay Presettlement Funding Offers Comprehensive Guideline for Funding Contracts to Avoid

By Harry Moran |

As the lawsuit funding industry continues to grow, Legal-Bay Lawsuit Settlement Funding is issuing a public advisory to plaintiffs navigating the complex and often underregulated pre-settlement loan landscape. The company urges consumers to remain vigilant against deceptive contract practices and highlights its own commitment to transparency, fairness, and ethical funding solutions.

While pre-settlement funding can offer critical financial relief during lengthy legal battles, Legal-Bay warns that not all funding companies operate ethically. In particular, the firm is cautioning plaintiffs to avoid contracts that include compounding pricing models, hidden fees, and vague language, common tactics used by unscrupulous funders.  Legal-Bay also offers refinancing's in event you have a large legal funding lien with a bad compounding rate and want cheaper pricing.

Chris Janish, CEO of Legal Bay, says, "Too often we see plaintiffs fall victim to exploitative funding agreements that leave them owing far more than they borrowed, especially after years of compounding costs buried in the fine print. Many of these contracts are intentionally confusing, designed to mislead consumers. At Legal-Bay, we offer refinancing options on large funding buyouts, by converting your existing compounding lien into a flat pricing lien – no different than a home mortgage refi."

If you are involved in any active litigation and would like to discuss how to get a cash advance from your anticipated lawsuit settlement, please visit the company's website HERE or call 877.571.0405 where agents are standing by to hear about your specific case.  

Legal-Bay outlines several red flags that plaintiffs should watch out for when considering a pre-settlement advance:

  • Compounding interest without clear repayment terms: Some funders fail to disclose how much a plaintiff will owe over time, resulting in balances that balloon dramatically after two or three years.
  • Vague or misleading contract language: Important terms are often hidden in fine print or presented in confusing legal jargon.
  • Discouraging attorney involvement: Ethical funders will encourage plaintiffs to review all funding agreements with their attorneys instead of trying to edge them out of the discussion.
  • Lack of disclosure about maximum repayment: Some contracts leave plaintiffs uncertain about how much will ultimately be deducted from their settlement.

In contrast, Legal-Bay's approach is rooted in transparency, fairness, and full attorney cooperation. All of their contracts are structured to include straightforward terms, capped repayment amounts, and no compounding interest. Plaintiffs and their attorneys are given full access to review and understand the terms before any funding is finalized.

Legal-Bay's dedication to ethical funding has made it a trusted name in loan on lawsuit funding for plaintiffs in personal injury, sexual abuse, motor vehicle accidents, medical malpractice, dog bite, commercial litigation, and many more.

Legal-Bay's lawsuit funding programs are designed to provide immediate cash in advance of a plaintiff's anticipated monetary award. While it's common to refer to these legal funding requests as loans on lawsuit or settlement loans, legal funding isn't like a loan at all. Because the funds are non-recourse, there's no risk since there is no obligation to repay the money if the recipient loses their case.

To apply right now for a loan settlement program, please visit the company's website HERE or call toll-free at: 877.571.0405 where agents are standing by to answer any questions.

Announcements Commercial Fundraising

Theo Ai Secures 4.2MM Seed Round to Advance AI-Powered Settlement Prediction for Big Law

By Harry Moran |

Theo Ai, the AI-driven prediction platform for litigation, has raised a $4.2 million seed round just six months after its $2.2 million pre-seed announcement in November. The round was co-led by returning investor NextView Ventures and new investor Collide Capital. As part of the investment, Aaron Samuels, General Partner at Collide Capital, will join Theo Ai’s board. The funds will be used to expand proprietary data pipelines, enhance legal corpus, and reinforce supervised learning with legal experts.

“The legal industry is at a turning point, and AI-powered predictions are becoming essential for managing client expectations and executive decision-making,” said Patrick Ip, Co-founder and CEO of Theo Ai. “With this investment, we will continue to develop the infrastructure that makes settlement predictions more precise and valuable for law firms and corporate legal teams.”

Theo Ai will use the new capital to accelerate product development, focusing on its AI-powered settlement prediction tools tailored for Big Law firms and General Counsels. The company is committed to building firm-specific prediction engines that leverage case history and proprietary data to provide actionable insights across a wider array of legal scenarios.

“The leadership team within Theo Ai continues to demonstrate a deep understanding of customer needs and the way advanced technology can reshape the legal field for decades to come” said Co-Founder and Partner at NextView, Rob Go. “this round came together very quickly because customers are quickly adopting what they see as a uniquely valuable solution."

“Theo Ai is transforming the way legal teams predict and manage settlements, and we are excited to back their next phase of growth,” said Aaron Samuels. “Having crossed paths with Patrick early in our respective founder journeys, it’s incredible to now collaborate in building the future of AI-driven legal intelligence.”

The funding round also marks a significant expansion of Theo Ai’s leadership team with the appointment of Jay Mandal as Chief Product Officer. A Stanford Law Lecturer and former COO at SAP, Mandal brings deep expertise in AI, enterprise technology, and legal innovation. He previously was the head M&A attorney at Apple and founded a legal tech company acquired by Rocket Lawyer. The company also welcomed Rob Martorana as Head of Partnerships. A former attorney with over 25 years in legal sales and marketing, including 12 years in litigation finance, Rob brings deep expertise across portfolio, single-case, and corporate monetization strategies. He most recently founded REMO Litigation Finance and served as SVP at Burford Capital.

Theo Ai’s seed round saw participation from all pre-seed investors, including nvp capital, Ripple Ventures, and Beat Ventures. The round also welcomed new investors Four Acres Capital and a distinguished group of angel investors from across legal, finance, and technology:

  • David Fox (Kirkland & Ellis)
  • Bo Berluti (RTP Global)
  • Ramesh Dhanaraj (ex-Fortress Investment Group)
  • Vivek Nasta (ex-Thomson Reuters)
  • Akash Garg (ex-Uber)
  • Art Calcagnini (ex-UBS)

Theo Ai initially launched by helping litigation funders optimize their investment decisions – recently partnering with Mustang Litigation Funding – and has rapidly expanded into serving Big Law and in-house legal teams. The strong market demand led to an oversubscribed seed round, reinforcing confidence in Theo Ai’s technology and vision.

With this latest funding, Theo Ai is poised to drive the future of AI-powered legal decision-making, delivering cutting-edge predictive solutions for the legal industry.

To learn more and join the waitlist for Theo Ai, visit: Theo Ai

About Theo Ai

Theo Ai is the first predictive engine designed by technical and legal professionals to forecast the outcome of legal disputes. Its AI models are trained on historical case data and incorporate real-time analytics with predictive modeling to deliver accurate and actionable insights. Theo Ai is meeting the most critical need for legal professionals - offering accurate case outcome predictions, backed by data. To learn more and join the waitlist for Theo Ai, visit: https://theoai.ai/#product

Announcements Commercial

International Legal Finance Association Adds Certum to Mark 30 Member Companies

By Harry Moran |

The International Legal Finance Association (ILFA), the only global association of commercial legal finance companies, announced that it has added its 30th member company to the association –Certum Group. 

Certum Group specializes in comprehensive alternative litigation strategies, such as litigation buyout insurance, judgment preservation insurance, litigation funding, class action settlement insurance, adverse judgment insurance, and claim monetization. The Texas-based Certum Group team includes litigation and insurance professionals along with risk mitigation specialists. 

“We are delighted to join ILFA and help it engage with policymakers interested in litigation finance,” said William Marra, a Director at Certum Group who leads the company’s litigation finance efforts. “Funding helps people and companies with strong legal claims get better access to the courts. We are excited to work with IFLA and ensure policymakers continue to encourage rather than restrict companies’ access to commercial legal finance.” 

“We’re delighted that Certum is joining ILFA’s growing membership”, said Rupert Cunningham, ILFA’s Global Director of Growth and Membership Engagement. “Certum already provides a lot of thought leadership on litigation funding and other matters, and they will make a great addition to ILFA’s work to support the sector in the US and globally.” 

About the International Legal Finance Association   

The International Legal Finance Association (ILFA) represents the global commercial legal finance community, and its mission is to engage, educate and influence legislative, regulatory and judicial landscapes as the voice of the commercial legal finance industry. It is the only global association of commercial legal finance companies and is an independent, non-profit trade association promoting the highest standards of operation and service for the commercial legal finance sector. ILFA has local chapter representation around the world. 

For more information, visit www.ilfa.com and find us on LinkedIn and X @ILFA_Official.