Business
H1 Trading Update
H1 Trading Update.
About this update from Manolete Partners Plc
[{"type":"text","content":"\n \n \n \n 9 September 2022\n \n \n \n THE INFORMATION COMMUNICATED IN THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 596/2014 (\"MAR\"). Steven Cooklin Chief Executive Officer of Manolete Partners Plc is the person responsible for this disclosure.\n \n \n \n Manolete Partners Plc\n \n \n \n \n (\"Manolete\" or the \"Company\")\n \n \n \n \n H1 Trading Update\n \n \n \n Manolete Partners Plc (AIM: MANO), the leading listed insolvency litigation financing firm in the UK, announces that it has received a rare adverse decision in the High Court on one of its larger cases. While Manolete has applied for permission to appeal this surprising decision, the Board has decided to write down the full value of the case in its forthcoming results for the six months ended 30 September 2022 (\"FY23 Interim Results\"). The impact will be a reduction of £2.3m to pre-tax profits, of which the cash costs paid out on this case to date are £636,756.\n \n \n Separately, reflecting the widely reported deterioration and challenges presenting in the UK macro-economic climate, the Board has taken a more prudent view of the valuation of the Company's c.280 ongoing litigation case investments.\n \n \n As a combination of both of these factors, the Company expects to announce a pre-tax loss of c.£5m in the FY23 Interim Results, the large majority of which will be due to the adjustment of unrealised revenues and unrealised profits.\n \n \n \n Underlying business performance and cash generation\n \n \n \n Despite these negative factors, the business continues to operate well, in particular, gross cash generation from completed cases in the first five months of the current trading year is at a record £15m. This compares to £15.6m gross cash generation for the entire 12 months for the year ended 31 March 2022. This strong cash performance enabled the Company to repay a net £3.7m of indebtedness during the first half of this financial year. Furthermore, unaudited realised revenues, on completed cases, for the first five months of FY23 were 175% higher at £10.6m (FY22: £3.9m).\n \n \n From 1 April 2022, UK insolvency regulations returned to normal after a near two-year suppression of insolvencies by the Government in response to the Covid-19 pandemic. The benefits of this are now starting to flow into the Company's key ...