Niche litigation funder Manolete today posted a 52% increase in underlying interim profits in its maiden results as a listed company. Investment in new cases continues to rise.
In the six months to 30 September, earnings before interest and tax totalled £3.3m, up 52% on the £2.1m posted for the same period in 2017/18. At the pre-tax level profits were £3m, up from £1.9m.
Founded in 2009, Manolete acquires and funds insolvency and insolvency-related claims. The company listed on the junior AIM market last Friday with an offer price of 175p. The company’s shares edged up slightly this morning to 196p.
Manolete has invested in over 240 insolvency cases to date. Today’s results reveal investment in cases so far this year is at £13.9m, up from £8m at 30 September 2017. In total, the company has invested in 31 new cases during the first six months, compared to 21 in the 2017/18 financial year. The company is currently managing 76 live case investments, compared to 46 live cases at 30 September 2017. Average case duration across the full portfolio of 173 completed cases is 11 months.
In a statement accompanying the figures Manolete said: ‘We continue to seek to have a balanced case portfolio by both size and type of case. In recent periods we have looked to move up the value chain and accept a larger proportion of higher-return, higher-value case investments.’
Manolete chief executive Steven Cooklin said: ’This strong set of results is the latest milestone in our track record of delivering profitable growth, underpinned by our core ability to source and price complex legal risk.’
This week Manolete signed an exclusive three-year sponsorship contract as sole litigation funder sponsor for the Institute of Chartered Accountants in England and Wales (Restructuring and Insolvency Community). The ICAEW is the biggest regulator of UK insolvency practitioners.