Despite the disruption caused by COVID, the company reported a gross profit of A$26.6 million, up A$4.9 million (23%) from the past year, primarily attributable to the resolution of six investments from its direct balance sheet portfolio and the partial resolution of 12 investments.
The company saw its number of applications increase from 522 in FY2020 to 572 in FY2021, though the amount of capital committed to new cases in the year was A$109 million, down from A$147 million in the previous year.
Highlights of the company’s year include entering into a number of investments involving large high profile corporate collapses (Carillion Group and CGL Realisations (Comet)), as well as establishing a tailored disputes finance facility with DLA Piper.
The company’s 10 year IRR now stands at 78%.
Patrick Moloney, CEO of Litigation Capital Management, commented: “I am pleased to deliver a strong set of results following a year marred with global disruption. Not only does this demonstrate the resilience of our business it also reflects the strength of our robust and disciplined investment selection process and the high calibre of our investment managers. LCM’s performance during the period was underpinned by our maturing balance sheet of direct investments which is beginning to deliver high yielding resolutions. We continue to build scale across our portfolio of investments and asset management business and anticipate an increased demand for our financing solutions as the effects of COVID on businesses starts to unfold. I look forward to my upcoming relocation to the UK later this year and leading the team to driving the business forward and accelerating growth in the period ahead.”
Full financial details and commentary can be found in the company’s annual report.