|
Litigation Capital Management Ltd on Wednesday said the most recent financial year represented the ‘most challenging’ in the company’s history, as it swung to a loss and reported an adverse High Court ruling. Shares in the asset manager focused on dispute financing fell 63% to 9.78 pence on Wednesday afternoon in London. The company swung to a pretax loss of A$101.7 million, about $67.2 million, for the financial year to June 30, from A$16.1 million in profit a year earlier. Litigation Capital Management swung to a total loss for the period of A$78.5 million from A$47.8 million in income. Driving this weakness was a net unrealised loss on investments of A$206.8 million, swinging from an A$25.1 million gain. The company reported no litigation service revenue for the year, down from A$12.4 million. ‘The last 12 months have been the most challenging in LCM’s history as we experienced a series of adverse case outcomes impacting our financial performance. These setbacks, while disappointing, have underscored the inherent risks of our asset class and the lessons we have learned are shaping our path forward,’ said Chief Executive Patrick Moloney. Moloney added: ‘Looking ahead, we are committed to restoring LCM’s track record of delivering value through a reinvigorated focus on active management of case investments, a cornerstone of our historical success.’ Throughout the period, the company said it recorded six wins against six losses, noting that a further three cases lost at trial and are now under appeal. ‘Disappointingly, several of the adverse outcomes were for cases where we had invested significant shareholder capital, the company added. On Wednesday, the company reported that the High Court in London had delivered a judgement in a commercial litigation claim that it funded, with the court finding against LCM’s funded party. Litigation Capital Management said it contributed £9.9 million of its own capital, with a further £6.1 million invested from Fund I. The company said it will review the judgement and ’assess potential next steps.‘ Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
