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Litigation Capital Management (LCM) Limited (AIM:LIT), announces its full year results for the period ended 30 June 2019.

Litigation Capital Management (LCM) Limited (AIM:LIT), announces its full year results for the period ended 30 June 2019.

Litigation Capital Management Limited (AIM:LIT), a leading international provider of litigation financing solutions, today announces its audited financial results for the year ended 30 June 2019. Company highlights ▪ Strong performance and significant operational expansion to achieve global platform covering Australia, EMEA and Asia Pacific – Establishment of London office and recruitment of highly experienced team led by Nick Rowles-Davies, Executive Vice Chairman, to service the EMEA region – Establishment of Singapore office and recruitment of highly experienced team leader to service the growth markets of Singapore and Hong Kong ▪ Increased investment pool and achieved significant diversification in our portfolio and pipeline by geography and jurisdiction, as well as sector and capital commitment, whilst maintaining discipline ▪ Funded two corporate portfolio transactions; LCM is the clear global leader in this key growth area ▪ Initiated a pilot program providing a funding solution for small claims in the insolvency market in Australia and the United Kingdom ▪ Continued growth of pipeline with 64 investment opportunities (as at 3 September 2019) ▪ 235% increase in applications during FY19; maintaining disciplined focus on due diligence with only 3% of applications converted into an investment ▪ Delisted from Australian Securities Exchange and listed on AIM in December 2018; raising circa A$35 million (£20 million) of primary equity, following a raise of A$10 million on the ASX in the period Financial highlights ▪ Revenue of A$34.71 million increased by 17% (FY18 A$29.68 million) ▪ Gross profit of A$20.34 million increased by 23% (FY18 A$16.51 million) ▪ Adjusted profit before tax of A$12.28 million broadly flat against FY18, despite unprecedented growth and expansion across all areas of the business ▪ Cash on balance sheet of A$49.12 million (A$52.60 million as at 31 December 2018) and total litigation investments of A$27.39 million (A$20.70 million as at 31 December 2018) ▪ Leading performance metrics with cumulative ROIC since FY12 of 135% (including losses) and portfolio IRR, since FY12, of 80% (including losses) ▪ Final fully franked dividend of 0.828 cents (Australian) per share; following the interim dividend of 0.506 cents (Australian) per share paid in May 2019 Notes: ¹ LCM reports on a cash accounting basis (historical cost), there are no fair value adjustments included in its financials 2 Revenue includes the impact of the adoption of AASB 15 Revenue from Contracts with Customers 3 Adjusted for foreign exchange loss, IPO and other transaction expenses, share based payments expense, non-recurring legal fees on litigation, provision for employee entitlements, non-recurring consultancy fees 4 Litigation investments equates to the total of current contracts costs and non-current contract costs on the Consolidated Statement of Financial Position 5 Cash receipts equates to Proceeds from Litigation Contracts as disclosed in the Consolidated Statement of Cashflows (Cash flows from operating activities). The cash receipts of $26.80m does not include revenue pf $7.627m due from the completion of litigation services, of which $7.18m is held in an Escrow Account awaiting orders of the Court for distribution. Patrick Moloney, CEO of LCM, said: “We are pleased to present a strong set of results for FY 2019, which we have delivered alongside unprecedented growth and expansion across all areas of our business. We have continued to invest in the right people who have the appropriate experience to support our growth trajectory. The results we publish today represent realised revenue and demonstrate our true performance. We remain committed to providing our investors with the disclosure and transparency they need to assess the underlying performance of the business and the basis of our returns. We are excited about a number of significant growth opportunities for LCM. Notably, corporate portfolio funding, where in the past year we have established ourselves as the global leader for this product. During the year, we originated over 15 applications and funded two corporate transactions. This number might seem small, but it represents more than any other funder globally and corporate portfolio funding remains a key part of our growth strategy going forward.” WEBCAST AND CONFERENCE CALL LCM will be hosting a live meeting and conference call today at 09:30 (BST). The webcast can be accessed via our website at www.lcmfinance.com/shareholders/. A conference call is also available for those unable to join the webcast, please register at https://secure.emincote.com/client/lcm/lcm001/vip_connect to get access. There will be a facility to ask questions. A replay of the webcast will be available later today. CONTACTS Litigation Capital Management Patrick Moloney, Chief Executive Officer Nick Rowles-Davies, Executive Vice Chairman Stephen Conrad, Chief Financial Officer Canaccord (Nomad and Broker) Bobbie Hilliam Hawthorn Advisors Lorna Cobbett / Zinka MacHale Tel: 020 7523 8000 lcm@hawthornadvisors.com Tel: 020 3745 4960 PROJECT AND PIPELINE UPDATE As at 30 June 2019, LCM has a portfolio of 29 current projects under management. 23 projects are unconditionally funded and six projects conditionally funded. The portfolio shows significant growth of 45% in the number of projects under management,given LCM wasmanaging 20projectsasat 30June2018. In linewith LCM’sinvestment philosophy, the portfolio maintained diversity across industry sector, jurisdiction and capital commitment. Both project and pipeline opportunities are well diversified by litigation type and geography, while maintaining a disciplined process of project selection. LCM has pre-qualified 64 pipeline projects with estimated investment of A$394 million. During FY19 both the number and quality of applications received by LCM increased significantly. A total of 419 applications were received representing an increase of 235%, compared with 125 applications received in FY18. This application increase was largely due to our expansion into new jurisdictions, but also from LCM realising a higher profile

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Court of Appeal Shuts Down BHP’s Attempt to Overturn Mariana Liability Judgment

By John Freund |

The Court of Appeal of England and Wales today refused BHP’s application for permission to appeal the High Court’s landmark liability judgment in the Mariana disaster litigation.

The High Court found BHP responsible for the 2015 collapse of the Fundão tailings dam in Mariana, Minas Gerais, Brazil, concluding that BHP is liable for the disaster under both the Brazilian Civil and Environmental law.

The Court of Appeal heard BHP’s application for permission to appeal the decision on 12 March after BHP was refused permission to appeal by the High Court in January.  BHP asked the court for permission to contest the findings that it was a polluter, and that it had knowledge of the risks associated with the dam before the collapse. The mining company also challenged the finding that all claimants brought their claims in time.

The Court of Appeal’s refusal marks a further victory for the hundreds of thousands of Brazilian victims who have spent over ten years pursuing justice, and a major setback for BHP. The High Court’s liability judgment remains in force, and BHP has exhausted the ordinary routes by which it could seek to overturn it.

In today’s ruling, the court concluded that BHP’s proposed grounds of appeal have no real prospect of success and there is no other compelling reason for the appeal to be heard.  The decision means that the parties will proceed to the trial of Stage 2 of the proceedings, which will determine issues of causation, loss and damages. The trial evidence is to be heard from April 2027 to December 2027, with closing submissions listed for March 2028.

Lord Justice Fraser wrote in the decision: “I do not accept that any of the grounds relating to BHP’s liability for the dam collapse are reasonably arguable. I do not consider that there is any foundation for the different complaints that the trial judge failed to engage with BHP’s case."

Jonathan Wheeler, lead partner for the Mariana litigation at Pogust Goodhead, said: “The Court of Appeal has now joined the High Court in finding that BHP’s grounds of appeal have no real prospect of success - an emphatic and unambiguous outcome. BHP remains liable for the worst environmental disaster in Brazil’s history, and it will not be given another bite at the cherry.”

“Our clients have waited more than a decade for justice while BHP pursued every procedural avenue to avoid accountability; those avenues are now closed. We are focused on securing the compensation that hundreds of thousands of Brazilians have been owed for far too long.”

Loopa Finance Wins at the Lexology European Awards 2026 in the Litigation / General Counsel Category

By John Freund |

Loopa Finance has been recognized as the winner in the Litigation – General Counsel Team category at the Lexology European Awards 2026, one of the leading recognitions in the international legal sector.

The award was received in London by Ignacio Delgado, General Counsel Europe at the firm, on behalf of Loopa Finance’s European team, composed of Ignacio Delgado (General Counsel Europe), Marina Gouveia (Investment Manager), Fernando Pérez Lozada (Senior Investment Manager), and Fernando Folgueiro (Managing Partner).

The Lexology European Awards recognize outstanding legal teams across the region through a methodology that combines independent research, quantitative and qualitative analysis, and thousands of nominations supported by clients and industry peers, as well as the annual research conducted by the Lexology Index (formerly Who’s Who Legal) and Client Choice.

The selection process is based on performance evaluations related to effective communication, commercial understanding, technical expertise, strategic management, and team strength, and is supported by a global community of more than 940,000 subscribers.

This recognition positions Loopa Finance’s European team among the leading practitioners in complex litigation and strategic legal management in Europe.

“This award reflects the strength of a team operating across two continents that understands litigation not only from a legal perspective, but also through financial analysis and risk management. It is the result of collective work and a rigorous, strategic approach to structuring complex disputes,” said Delgado during the ceremony.

More Than an Award: Validation of a Model

The award comes at a time of consolidation for the firm. Loopa Finance recently completed its rebranding process, evolving from Qanlex to Loopa Finance and reinforcing an identity aligned with its growth in continental Europe and its broader international positioning.

It also coincides with the closing of Fund III, raising €65 million to finance complex litigation and arbitration across Europe and Latin America, significantly expanding the firm’s investment capacity and supporting the continued growth of its platform in the region.

This milestone adds to the firm’s recent rankings, including its Band 1 classification by Chambers & Partners in Latin America and Europe, its recognition as “Highly Recommended” by Leaders League across multiple jurisdictions, and the inclusion of members of its team among the Thought Leaders in Third-Party Funding by the Lexology Index. Together, these results confirm the strength of Loopa Finance’s model and the consolidation of its team as a reference in the strategic financing of disputes at an international level.

About Loopa Finance

Loopa Finance is an investment fund specializing in the financing and monetization of litigation and arbitration across continental Europe and Latin America, supported by a technology-driven model and rigorous risk analysis. The firm provides capital to cover legal costs or monetize ongoing claims through non-recourse structures, where the recovery of the investment depends exclusively on the successful outcome of the case, assuming the financial risk of the dispute while fully aligning its interests with those of clients and law firms.

Pravati Capital Partners with SEI to Bring Litigation Finance to Registered Investment Advisors

By John Freund |

One of the oldest litigation finance firms in the United States has announced a strategic partnership aimed at expanding mainstream investor access to the asset class.

As reported by Business Wire via Yahoo Finance, Scottsdale-based Pravati Capital has partnered with financial services firm SEI to provide registered investment advisors with structured access to litigation finance as an alternative investment option. The collaboration will leverage SEI's distribution platform to make litigation funding opportunities available within advisor portfolios.

The partnership reflects growing institutional interest in litigation finance as an alternative asset class. Historically, litigation funding has been difficult for mainstream financial advisors to access on behalf of their clients, with the market largely dominated by specialized funds and institutional investors. The Pravati-SEI arrangement seeks to bridge that gap by creating a more accessible pathway for advisors seeking diversification through non-correlated investments.

The announcement underscores a broader industry shift as litigation finance continues to move from a niche strategy toward greater acceptance within traditional wealth management channels. As the global litigation funding market grows — projected to reach over $25 billion in 2026 — partnerships like this one may signal a new phase of institutional adoption.