Litigation Capital Management Limited (LCM) has released the following announcement detailing its interim results for the half year ended 31 December 2024:
Highlights
- Seven realisations in period generating A$51m of revenue
- Net realised gains of A$37.4m (HY24: A$19.6m), with concluded investments generating a 3.67x multiple of cash invested (MOIC)
- Total income of A$4.7m (HY24: A$21.6m) due to A$32m negative fair value movement driven by fair value write-offs on concluded investments
- Loss after tax for the period of A$8.4m (HY24: profit A$7.3m)
- Net assets of A$181.8m (HY24: A$188.9m)
- Book value per share of 86.3 pence (FY24: 94.4 pence)
- Total new commitments of A$34m added in the period (HY24: A$90m)
Outlook
- Fund management momentum accelerating, with Fund III on track for launch before 30 June 2025
- New commitments expected to rebound in the second half of FY25.
Commenting on the results, Patrick Moloney, CEO of Litigation Capital Management, said: “The first half of the year reflected the inherent volatility of litigation finance. While we secured significant wins in two arbitration cases, we also faced setbacks with two class action losses at trial, which are now subject to appeal. Our transition to a fund management model continues to gain momentum, and as we scale, we expect to reduce financial unpredictability. We remain disciplined in capital allocation, focused on generating strong long-term returns for our investors and shareholders.”
LCM will be hosting a webinar for investors today at 11.00 a.m. The presentation is open to all existing and potential shareholders. If you would like to attend this presentation, please register using the following link:
The full release from LCM, including detailed financial breakdowns and the Chief Executive’s full statement, can be read here.