UK-based insolvency litigation funder Manolete Partners has warned that its EBIT for the year ended 31 March 2022 will come in below market expectations. It attributes this to challenging trading conditions caused mainly by the UK Government’s temporary restrictions on insolvencies.
Company CEO Steven Cooklin remains optimistic, however, noting that the company is in good shape going into the new financial year.
“While the EBIT for the FY22 financial year is below market expectations, the external factors driving this are now at an end, and there is expected to be an insolvency ‘catch up’ effect over the next 12 months and beyond which will provide Manolete with significantly increased opportunities to take on strong cases for the benefit of its shareholders and the business and creditor communities. New case enquiries have rebounded sharply upwards in the last 4 weeks as IPs and lawyers returned to more normal working conditions following the challenges of Omicron.”
Cooklin also noted that the company had a strong financial year in other respects:
“The company has been able to continue working well on its existing cases driving realised revenue and cashflow. The company recorded record gross cash recoveries from completed cases of £15.6m for FY22, which is 28% higher than FY21 and more than double the cash recovered on completed cases in FY20. After payments to IPs and legal costs, Manolete’s retained share of this cash is up 45% to £9.7m (FY21: £6.7m).”