1st Oct 2025 12:30
(Alliance News) - 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 AUD101.7 million, about USD67.2 million, for the financial year to June 30, from AUD16.1 million in profit a year earlier.
Litigation Capital Management swung to a total loss for the period of AUD78.5 million from AUD47.8 million in income.
Driving this weakness was a net unrealised loss on investments of AUD206.8 million, swinging from an AUD25.1 million gain.
The company reported no litigation service revenue for the year, down from AUD12.4 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 GBP9.9 million of its own capital, with a further GBP6.1 million invested from Fund I.
The company said it will review the judgement and "assess potential next steps."
By Christopher Ward, Alliance News reporter
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