Business
Fair Value Accounting and Dividend Payment
Fair Value Accounting and Dividend Payment.
About this update from Litigation Capital Management Ltd
[{"type":"text","content":"\n\n18 July 2023\n \nLitigation Capital Management Limited\n(\"LCM\" or the \"Company\")\n \nTransition to Fair Value Accounting and Dividend Payment\n \nLitigation Capital Management Limited (AIM:LIT), a leading alternative asset manager of disputes financing solutions, provides a market update for the twelve month period to 30 June 2023 (\"FY2023\").\n \nFollowing a number of recent resolutions in the second half of FY23, the result for the full year will deliver LCM's strongest performance to date by a significant margin. The Company is well positioned for the year ahead with in excess of A$80m in cash held at period end. We will provide further details with the release of our year end results.\n \nThe Company wishes to update the market on two important developments.\n \nReporting update - Transition to Fair Value Accounting\n \nThe evolution of the Company's business over the past two years, transitioning away from the legacy direct investments business model and towards positioning LCM as an Alternative Asset Manager, necessitated the need to review the Company's accounting policies. In consultation with our advisers, the Board has taken the important decision to transition to Fair Value accounting. This will put LCM in line with industry peers in both accounting policy and fair value framework. In doing so, we expect to announce our audited results for FY2023 under both the existing accounting policies as well as the newly adopted Fair Value accounting. This will provide our investors with better transparency on the impact of the transition.\n \nDividend\n \nFollowing the strong financial performance of the business during FY2023, the Board has decided to pay a dividend of 2.25p per ordinary share payable to Shareholders. The dividend timetable for this distribution will be contained within the FY2023 results announcement.\n \nPatrick Moloney, Chief Executive Officer, commented: \"We are pleased with the performance of the business over the past 12 months, particularly as we begin to see the benefits of moving to a fund management business model. Our strong financial performance is the best in LCM's history and reflected in the Board's decision to pay a dividend.\"\n \nJonathan Moulds, Chair, commented: \"The transition to Fair Value accounting is a significant ...