23rd Jun 2022 10:57
Manolete Partners PLC - London-based insolvency litigation financing - Pretax profit drops 34% to GBP4.5 million in the year that ended March 31 from GBP7.0 million the year prior, as pretax profit margin narrows to 23% from 25%. Revenue falls 27% to GBP20.4 million from GBP27.8 million.
The completed number of cases reaches a new record of 139, compared to 135 the year prior. The recent year had "very challenging" trading conditions, as the UK government restricted the insolvency and restructuring industry during the pandemic, in order to protect vulnerable employers.
Manolete notes the key driver of profit in the year was the revaluation of cartel cases by GBP5.1 million. "Without the uplift in cartel cases, it should be noted that performance would have resulted in only a marginally positive [earnings before interest and tax] profit," the firm says.
Recommends final dividend of 0.50 pence per share, for a total of 0.89p for the financial year. This is a 59% decrease from financial 2021's payout of 2.17p.
Manolete is confident looking ahead, as it predicts UK insolvencies will be less suppressed, as UK economic support measures fully conclude.
Current stock price: 278.65 pence, down 3.9% on Thursday
12-month change: up 19%
By Elizabeth Winter; [email protected]
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