UK-based insolvency litigation funder Manolete Partners has announced its audited results for the year ended 31 March 2022, with revenue and pre-tax profit dropping £7.3m and £2.5m respectively from prior year.
CFO Mark Taverner noted that FY22 took place against a difficult trading environment. The UK Government restrictions on the insolvency industry and widespread UK Government support across the UK economy resulted in significantly fewer insolvencies in the market and therefore fewer new cases for Manolete to sign. The company invested in 159 new cases during the year, 20% less than the previous year, which had a direct result on financial results.
Despite the decrease, CEO Steven Cooklin remains optimistic:
“In what was a very challenging year, the Company has delivered a resilient performance demonstrating the robustness of our business model… The monthly number of UK company insolvencies, particularly CVLs, has now consistently returned to pre-pandemic levels for an extended period. I am pleased to report that this is starting to reflect in the numbers of our monthly new case enquiries. Following a sharp decline in the second half of our financial year ended 31 March 2021, new case enquiries have been rising at an increasingly faster pace. In the latest full month of May 2022, we received 61 new case enquiries, the highest monthly level since July 2020.”
Manolete distinguishes itself from almost all other litigation funding by purchasing, as opposed to funding, most legal cases. This allows it to fully control its cases and has led to much shorter case durations than industry averages.
Cumulatively, the company has reported a 132% IRR and a 2.5x money multiple on all the cases it has invested in since 2010.