22nd Jun 2023 10:59
(Alliance News) - Manolete Partners PLC reported an annual loss due to legal costs bought about by a large-scale trial in the second half of its financial year.
Manolete Partners, a London-based insolvency litigation financing firm, said its pretax loss in its financial year ended March 31 was GBP4.0 million, down from a profit of GBP4.5 million the previous year.
The company said that this was the consequence of fair value write-downs in the first half of financial 2023, including a large case loss at trial.
Manolete Partners incurred a loss of GBP2.8 million following the combination of GBP915,000 in legal costs and a fair value write down of GBP1.8 million at the trial, which impacted profit.
Revenue increased by 2.0% to GBP20.8 million from GBP20.4 million the year before.
"To understand the financial year 2023 results, it is necessary both to review the difference in the second half vs the first half performance, as growth in case numbers increased in the second half of financial year 2023 compared to a loss of GBP2.2 million in the first half of financial year 2023," the company explained.
The company did not declare a dividend for the year, compared to the final dividend of 0.50 pence per share and total dividend of 0.89p last year.
The company said it had a made a good start to its current financial year, and believe it is well-positioned to consolidate its position in the insolvency litigation financing market.
"We are confident we have invested in a portfolio of cases that will produce attractive returns for the company. The government measures to suppress UK insolvencies have now ended as have the wider UK economic support measures, which give us confidence in our future prospects," said Chief Executive Officer Steven Cooklin.
Shares in Manolete Partners were flat at 240.00 pence in London on Thursday morning.
By Will Neill, Alliance News reporter
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