A doubled insolvencies caseload helped specialist litigation financer Manolete Partners to higher profits in its maiden annual results as a listed company, the business reported today.
In the year ending 31 March, Manolete Partners plc reported a pre-tax profit up 85% to £6.8m on turnover up 30% to £13.8m. The business, which raised £14.6m with an initial public offering on the alternative investment market of the London Stock Exchange in December, proposed a dividend of 1.49p per share.
In a statement, Steven Cooklin, chief executive, said that activity levels were at record levels, highlighted by the 44 new case investments made since the IPO. 'This firmly underpins our confidence in the current and future trading performance of the business.' Operational highlights included a 103% rise in new core UK insolvency cases.
The chief executive's report reveals that Manolete made an average of £99,000 gross profit on each completed case, up 20% on the previous year. Cooklin said this reflects the continued rise in the average size of case.
Recent changes in legislation, including the application of the Jackson civil litigation reforms to insolvency litigation, have 'radically opened up the insolvency litigation funding sector and significantly increased the appeal of Manolete's model,' the statement continues.
Cooklin added: 'We look forward to working with many more insolvency practitioners and their lawyers, as we deploy the proceeds of the IPO, as well as the enhanced debt facility with HSBC, to accelerate our growth plans through financing more and larger insolvency cases, and to delivering continued stand-out returns for insolvency creditors and shareholders alike.'
Manolete shares slipped 10.9% to 470p on the news.