Interim results for the HY ended 31 December 2025

About this update from Litigation Capital Management Ltd

31 March 2026   Litigation Capital Management Limited ("LCM" or the "Company")   Interim results for the half year ended 31 December 2025   Litigation Capital Management Limited, an alternative asset manager specialising in dispute financing solutions internationally, today announces its interim results for the half year ended 31 December 2025.   Commenting on the results, Patrick Moloney, CEO of Litigation Capital Management, said: "The first half of this financial year has been the most challenging period in LCM's history. We experienced a number of large case losses which resulted in a significant financial loss for shareholders. In September 2025 we commenced a Strategic Review to explore all options for restoring LCM's balance sheet strength and realising value for shareholders. The Strategic Review is now approaching a conclusion and we will communicate its outcome to shareholders as soon as we are able to."   LCM will be hosting a webinar for investors today at 9.00 a.m. The presentation is open to all existing and potential shareholders. If you would like to attend this presentation, please register using the following link: https://www.investormeetcompany.com/litigation-capital-management-limited/register-investor   The accompanying results presentation is available on LCM's website:  https://www.lcmfinance.com/investors/investor-presentations-results   The Interim Financial Report is available at: https://www.lcmfinance.com/investors/investor-presentations-results    Enquiries   Litigation Capital Management Patrick Moloney, Chief Executive Officer David Collins, Chief Financial Officer     Cavendish (Nomad and Broker) Tel: 020 7220 0500 Jonny Franklin-Adams and Isaac Hooper (Corporate Finance) Ella Bedford (Corporate Broking)     NOTES TO EDITORS Litigation Capital Management (LCM) is an alternative asset manager specialising in disputes financing solutions internationally, which operates two business models. The first is direct investments made from LCM's permanent balance sheet capital and the second is third party fund management. Under those two business models, LCM currently pursues three investment strategies: Single-case funding, Portfolio funding and Acquisitions of claims. LCM generates its revenue from both its direct investments and also performance fees through asset management.   Currently headquartered in Sydney, with offices in London, Singapore, Brisbane and Melbourne, LCM listed on AIM in December 2018, trading under the ticker LIT.   www.lcmfinance.com     Chief Executive's Statement     The half year to 31 December 2025 proved exceptionally difficult for Litigation Capital Management Limited ("LCM" or the "Company"). A series of large case losses has led to substantial financial losses for shareholders. Such outcomes underline the binary and concentrated risks that are fundamental to litigation finance, where just a few high-value investments can produce disproportionately adverse results when they meet unfavourable judgments. These results mark a significant departure from LCM's long-term track record-one built on disciplined case selection, rigorous portfolio management, and the consistent delivery of positive cumulative returns over many years. LCM is not alone in grappling with these difficulties. Many of our peers have encountered comparable pressures in recent years, and several have ceased operations as a result. These widespread challenges make it evident that the industry must make fundamental changes to strengthen risk assessment, refine portfolio construction, and, in turn, deliver improved returns to capital providers. To address our challenges, we have taken the following actions: ·      Launched a Strategic Review in September 2025 to explore all options for restoring LCM's balance sheet strength and realising value for shareholders. ·      Secured debt covenant waivers from our lender, providing operational flexibility and stability while longer-term solutions are pursued. ·      Undertaken a comprehensive re-underwriting of the existing case portfolio, with targeted decisions applied to challenged investments, including selective exits, to protect remaining value and reduce future risk exposure. The Strategic Review continues as the Board's central priority. This process is advancing steadily, with the Board fully committed to identifying and executing the most appropriate path forward in the interests of all stakeholders. We remain deeply grateful for the patience and ongoing support of our shareholders, lenders, and other stakeholders during this challenging period. The Company will issue further updates in due course, particularly regarding the conclusion and outcome of the Strategic Review. Patrick Moloney Chief Executive Officer 31 March 2026               Directors' Report   The Directors of Litigation Capital Management Limited (LCM) present their report together with the half-year financial report of the consolidated entity consisting of LCM and its subsidiaries (collectively LCM Group or the Group) for the six month period ended 31 December 2025 and the auditors' review report thereon. 1. Directors The Directors of LCM at any time during or since the end of the financial period are set out below: Jonathan Moulds Patrick Moloney Dr David King David Collins   2. Company Secretary Anna Sandham was appointed Company Secretary of LCM in September 2016. Anna is an experienced company secretary and governance professional with over 20 years' experience in various large and small, public and private, listed and unlisted companies. Anna has previously worked for companies including AMP Financial Services, Westpac Banking Corporation, BT Financial Group and NRMA Limited. Anna holds a Bachelor of Economics (University of Sydney), Graduate Diploma of Applied Corporate Governance (Governance Institute of Australia) and is a Chartered Secretary. 3. Principal activities LCM is a global provider of disputes finance and risk management services. Headquartered in Sydney, with offices in London, Singapore, Brisbane and Melbourne, LCM listed on AIM in December 2018, trading under the ticker LIT. 4. Operating and financial review Overview of the LCM Group LCM is a company limited by shares and was incorporated on 9 October 2015. LCM was admitted to trade on the Alternative Investment Market (AIM) of the London Stock Exchange on 19 December 2018 under the ticker LIT. LCM was formerly listed on the Australian Securities Exchange (ASX) between 13 December 2016 and 21 December 2018. Its registered office and principal place of business is Level 12, The Chifley Tower, 2 Chifley Square, Sydney NSW 2000, Australia. Operations LCM operates its business through a series of wholly owned subsidiaries. The principal activity of those subsidiaries is the provision of litigation finance and risk management associated with individual and portfolios of disputes. LCM currently operates two business models.  The first is direct investments made from LCM's balance sheet capital.  The second is funds and/or asset management. Under those two business models, LCM currently pursues three investment strategies.  Those strategies are as follows: Single ‐ case funding: The first and currently largest strategy, is single ‐ case funding.  That is, the investment in a single dispute.  This is a strategy that LCM has maintained since its inception (through its predecessor company) 25 years ago.  Currently, a large proportion of LCM's investments are in single ‐ case investments. Portfolio funding: The second strategy pursued by LCM is portfolio funding.  That is, the provision of a portfolio based funding solution to law firms, insolvency practitioners or corporates.  It involves the provision of a financing solution and risk management tools for a bundle of separate disputes.  LCM's particular focus with respect to that strategy is the provision of corporate portfolio financing. Acquisitions of Claims: The third strategy, in its early stages of evolution, is the investment in smaller disputes (typically insolvency ‐ based) through the acquisition or assignment of the underlying cause of action. LCM generates its revenue through acquiring a cause of action and pursuing a recovery or award as principal.   Review of financial performance The statutory loss for the Group after adjusting for income tax amounted to $107,767,000 (31 December 2024: $8,353,000). Operating loss before tax is $111,672,000 (31 December 2024: $7,952,000). Cash on balance sheet was $23,601,000 as at 31 December 2025 (30 June 2025: $18,447,000). Of this, $22,207,000 relates to third-party cash which is restricted cash as it relates to balances held within the fund investment vehicles which have been consolidated with the Group numbers (30 June 2025: $9,582,000). Cash generated during the period from the resolution of investments was $1,428,000 (31 December 2024: $56,402,000). The Directors do not recommend a dividend in respect of the period ended 31 December 2025.   5. Matters subsequent to the end of the financial period On 12 January 2026, the Group announced a positive development in its international arbitration claim against the Republic of Poland, where the Singapore court rejected Poland's application to set aside the Energy Charter Treaty award. On 2 February 2026, the Group announced an increase in its credit facility together with an extension of the debt covenant waiver from its lender. On 11 March 2026, the Group announced that its funded party had been successful in the High Court of Australia in a trademark dispute claim in which LCM had invested A$3.3 million. The matter will now proceed to the Full Court for the quantification of costs and damages. On 17 March 2026, the Group announced that an adverse judgment had been delivered in an Australian commercial litigation claim funded by the Group with A$1.4 million of shareholder capital. The Group is reviewing the judgment and considering its options. The Strategic Review, which was commenced in September 2025, continues to progress. 6. Lead Auditor's independence declaration The Auditor's independence declaration as required under section 307C of the Corporations Act 2001 is included in LCM's financial statements. 7. Rounding of amounts LCM is of a kind referred to the Australian Securities and Investments Commission Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. Signed in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.     Mr Jonathan Moulds Chairman 31 March 2026                                 Consolidated statement of profit or loss and other comprehensive income For the period ended 31 December 2025   Consolidated     31 Dec 2025 31 Dec 2024     Note $'000 $'000       Income     Net realised gain on investments 4 (26,540) 93,439   Net unrealised gain/(loss) on investments 4 (99,191) (67,650)   Movement in financial liabilities related to third-party interests in consolidated entities 4 51,098 (18,382)   Litigation service revenue 4 - -   Litigation service expense 5 (31,126) -   Total income/(loss)   (105,759) 7,408        Expenses      Employee benefits expense 5 (4,412) (6,688)    Depreciation expense 5 (36) (47)    Corporate expenses 5 (1,606) (2,577)    Fund administration expense 5 (545) (1,313)    Foreign currency gains/(losses) 5 686 (4,735)    Total operating expenses (5,913) (15,360) Operating loss   ( 111,672 ) ( 7,952 )    Finance costs 5 (4,604) (3,710)   Loss before income tax expense ( 116,276 ) ( 11,662 )  Income tax benefit 6 8,509 3,309   Loss after income tax expense ( 107,767 ) ( 8,353 )     Other comprehensive income   Items that may be subsequently reclassified to profit and loss: Movement in foreign currency translation reserve (1,383) 8,620 Total comprehensive income for the period ( 109,150 ) 267     Loss for the period is attributable to: Owners of Litigation Capital Management Limited (107,767) (8,353) ( 107,767 ) ( 8,353 )   Total comprehensive income for the period is attributable to: Owners of Litigation Capital Management Limited (109,150) 267 ( 109,150 ) 267         Cents Cents       Basic loss per share 7 (104.73) (8.09)   Diluted loss per share 7 (104.73) (8.09)         The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with accompanying Notes to the Financial Statements.                   Consolidated statement of financial position For the period ended 31 December 2025   Consolidated 31 Dec 2025 30 Jun 2025   Note $'000 $'000   Assets   Cash and cash equivalents 8 23,601 18,447 Trade receivables 9 1,786 1,786 Due from resolution of financial assets 10 87,003 88,201 Contract costs 11 19,037 47,988 Investments 12 203,729 287,735 Property, plant and equipment 129 135 Intangible assets 410 439 Other assets 1,357 827 Total assets   337,052 445,558   Liabilities   Trade and other payables 13 23,672 10,508 Tax payable/(refund) (26) (6) Employee benefits 1,183 1,115 Borrowings 14 93,790 77,747 Financial liabilities related to third-party interests in consolidated entities 15 206,046 226,538 Deferred tax liability 6,777 15,286 Total liabilities   331,442 331,188 Net assets   5,610 114,370   Equity   Issued capital 16 61,286 60,634 Reserves 7,192 8,838 Retained earnings (62,868) 44,899 Parent interest 5,610 114,370 Total equity   5,610 114,370     The above Consolidated Statement of Financial Position should be read in conjunction with accompanying Notes to the Financial Statements.             Consolidated statement of changes in equity For the period ended 31 December 2025          Issued capital Treasury shares Retained earnings Share based payments reserve Foreign currency translation Total equity Consolidated $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2024                               69,674                                      (5,396)                                                120,492                                    3,556                                       615                                    188,941 Loss after income tax expense for the period - - (8,353) - - (8,353) Other comprehensive income for the period - - - - 8,620 8,620 Total comprehensive income for the period - - (8,353) - 8,620 267               Equity Transactions:             Share-based payments (note 20)                                        -                                               -                                                            -                                       590                                            -                                           590 Dividends paid (note 17) - - (2,680) - - (2,680) Treasury shares acquired (note 16) - (4,458) - - - (4,458) Cancellation of treasury shares (note 16) (9,854) 9,854 - - - - LSPs exercised and purchased by EBT (note 16) (860) - - - - (860)   (10,714) 5,396 (2,680) 590 - (7,407) Balance at 31 December 2024                               58,960                                      -                                                109,459                                    4,146                                       9,235                                    181,800         Issued capital Treasury shares Retained earnings Share based payments reserve Foreign currency translation Total equity Consolidated $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2025                               60,634                                      -                                                44,899                                    3,094                                       5,744                                    114,370 Loss after income tax expense for the period - - (107,767) - - (107,767) Other comprehensive income for the period - - - - (1,383) (1,383) Total comprehensive income for the period - - (107,767) - (1,383) (109,150)               Equity Transactions:             Share-based payments (note 20)                                        652                                               -                                                            -                                       (264)                                            -                                           389   652 - - (264) - 389 Balance at 31 December 2025                               61,286                                      -                                                (62,868)                                    2,830                                       4,361                                    5,610     The above Consolidated Statement of Changes in Equity should be read in conjunction with accompanying Notes to the Financial Statements.               Consolidated statement of cash flows For the period ended 31 December 2025   Consolidated   31 Dec 2025 31 Dec 2024   Note $'000 $'000   Cash flows from operating activities Proceeds from litigation contracts 1,428 56,402 Payments for litigation contracts (40,059) (78,310) Payments to suppliers and employees (7,249) (10,152) Income tax paid - (28) Net cash used in operating activities (45,880) (32,088) Cash flows from investing activities Payments for property, plant and equipment - (3) Payments for intangibles - (179) Refund/(payment) of security deposits 14 (1) Net cash from/(used in) investing activities 14 (182) Cash flows from financing activities Payments for treasury and loan shares - (5,318) Dividends paid 17 - (2,607) Proceeds from borrowings 14 15,666 - Repayments of borrowings 14 - (11,358) Payments of finance costs (2,696) (3,186 ) Payments of placement fees related to third-party interests - (835) Contributions from third-party interests in consolidated entities 15 38,145 40,626 Distributions to third-party interests in consolidated entities 15 - (24,572) Net cash from/(used in) financing activities 51,116 ( 7,250 )   Net decrease in cash and cash equivalents 5,250 (39,519) Cash and cash equivalents at the beginning of the period 18,447 68,113 Effects of exchange rate changes on cash and cash equivalents (95) 1,991 Cash and cash equivalents at the end of the period 8 23,601 30,585     The above Consolidated Statement of Cash Flows should be read in conjunction with accompanying Notes to the Financial Statements.       Notes to the financial statements 31 December 2025   Note 1. General information   The financial statements cover Litigation Capital Management Limited (the 'Company') as a Group consisting of Litigation Capital Management Limited and the entities it controlled at the end of, or during, the period (referred to as the 'Group'). The financial statements are presented in Australian dollars, which is Litigation Capital Management Limited's functional and presentation currency.   Litigation Capital Management Limited was admitted onto the Alternative Investment Market ('AIM') on 19 December 2018.   Litigation Capital Management Limited is a for profit publicly listed company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:   Level 12, The Chifley Tower 2 Chifley Square Sydney NSW 2000   A description of the nature of the Group's operations and its principal activities are included in the Directors' report, which is not part of the financial statements.   The financial statements were authorised for issue, in accordance with a resolution of Directors, on30 March 2026. The Directors have the power to amend and reissue the financial statements.   Note 2. Material accounting policies   These consolidated financial statements are general purpose financial statements for the interim reporting period ended 31 December 2025 and have been prepared in accordance with the Corporations Act 2001 and Australian Accounting Standard AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.   These interim financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2025 and any public announcements made by the Company during the interim reporting period.   Basis of preparation   The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.   Accounting standards and interpretations The accounting policies adopted are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 30 June 2025.   New and amended accounting standards and interpretations issued but not yet effective The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group's financial statements that the Group reasonably expects will have an impact on its disclosures, financial position or performance when applied at a future date, are disclosed below.   • Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments • IFRS 18 Presentation and Disclosure in Financial Statements • IFRS 19 Subsidiaries without Public Accountability: Disclosures • IFRS S1, General requirements for disclosure of sustainability-related financial information • IFRS S2 Climate-related disclosures   The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. The Group has not listed other standards and interpretations which are issued but not yet effective, as they are not expected to impact the Group.   Historical cost convention The financial statements have been prepared under the historical cost convention.   Critical accounting estimates The critical accounting judgements, estimates and assumptions that have been applied in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual report for the year ended 30 June 2025.   Going concern The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business.   The Company is currently reliant on covenant waivers from its lender, funds managed by Northleaf Capital Partners (Canada) Ltd. To date, these waivers have been forthcoming and have covered the quarters ending 30 June 2025, 30 September 2025 and 31 December 2025 (with extensions granted progressively, the most recent extending coverage to 15 April 2026).   The lender has continued to provide these waivers while the Company has been conducting a Strategic Review process, announced on 15 September 2025, with the objective of restoring the Company's financial strength. This review is evaluating a range of options to strengthen the balance sheet and is being undertaken in constructive dialogue with the lender, who has also been evaluating the options available to it as lender.   While the Company's lender has been supportive in granting covenant waivers to date, any further extensions or amendments that may be required in future periods will remain subject to the outcome of its own evaluation, the intentions of the Company's lender which may change at any time and any actions taken as a result thereof.   After considering the Company's forecasts, stress testing, available mitigating actions (including progress under the Strategic Review), and having regard to the inherent risks associated with the binary nature of the Company's investment model, the Directors have concluded that a material uncertainty exists which may cast significant doubt on the Company's ability to continue as a going concern.   The material uncertainty primarily relates to the Company's ability to maintain ongoing compliance with its debt covenants or to continue to obtain the necessary waivers from its lender in light of the result of the evaluations referred to above. The Directors have a reasonable expectation that the Company will continue to receive the necessary support from its lender to allow it to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis, whilst noting the material uncertainty described above.   However, these events and conditions indicate that a material uncertainty exists which may cast significant doubt on the Company's ability to continue as a going concern, and therefore the entity may be unable to realise its assets and discharge its liabilities in the normal course of business and at the amounts stated in the financial report. The financial report does not include any adjustments relating to the amounts or classification of recorded assets or liabilities that might be necessary if the Company does not continue as a going concern. Note 3. Segment information   For management purposes, the Group is organised into two operating segments comprising the operations of Litigation Capital Management Limited and its wholly owned subsidiaries ("LCM") and the Group's fund structures ("Fund").   LCM The LCM column includes the 25% co-investment in the Funds, Balance Sheet investments (ie, 100% investment by LCM) and corporate operations.   Fund I & II This comprises LCM Global Alternative Returns Fund and LCM Global Alternative Returns Fund II and their entities as disclosed in note 27 of the annual report for the year ended 30 June 2025. AASB 10 Consolidated Financial Statements requires the Group to consolidate fund investment vehicles over which it has exposure to variable returns from the fund investment vehicles. As a result, third party interests in relation to the Funds have been consolidated in the financial statements. The Fund column includes the 75% co-investment in the litigation funding assets and costs of administering the funds.   The following tables reflect the impact of consolidating the results of the Funds with the results for LCM to arrive at the totals reported in the consolidated statement of profit or loss and other comprehensive income, consolidated statement of financial position and consolidated statement of cash flows.                  Consolidated Statement of Comprehensive Income   31 December 2025 31 December 2024     LCM Fund Consolidated LCM Fund Consolidated     $'000 $'000 $'000 $'000 $'000 $'000   Income     Net realised gain on investments    (13,105) (13,434) (26,540) 37,429 56,010 93,439   Net unrealised gain/(loss) on investments (61,496) (37,694) (99,191) (32,750) (34,899) (67,650)   Movement in financial liabilities related to third-party interests in consolidated entities - 51,098 51,098 - (18,382) (18,382)   Litigation service revenue - - - - - -   Litigation service expense (31,126) - (31,126) - - -   Total income/(loss) (105,728) (30) (105,759) 4,679 2,729 7,408       Expenses     Employee benefits expense (4,412) - (4,412) (6,688) - (6,688)   Depreciation expense (36) - (36) (47) - (47)   Corporate expenses (1,606) - (1,606) (2,577) - (2,577)   Fund administration expense - (545) (545) (835) (478) (1,313)   Foreign currency gains/(losses) 110 575 686 (2,484) (2,251) (4,735)   Total operating expenses (5,943) 30 (5,913) (12,632) (2,729) (15,360)   Operating loss ( 111,672 ) - ( 111,672 ) ( 7,952 ) - ( 7,952 )   Finance costs (4,604) - (4,604) (3,710) - (3,710)   Loss before income tax expense ( 116,276 ) - ( 116,276 ) ( 11,662 ) - ( 11,662 )    Income tax benefit 8,509 - 8,509 3,309 - 3,309   Loss after income tax expense ( 107,767 ) - ( 107,767 ) ( 8,353 ) - ( 8,353 )       Other comprehensive income for the period, net of tax (1,383) - (1,383) 8,620 - 8,620   Total comprehensive income for the period ( 109,150 ) - ( 109,150 ) 267 - 267             Consolidated statement of financial position   31 December 2025 30 June 2025     LCM Fund Consolidated LCM Fund Consolidated     $'000 $'000 $'000 $'000 $'000 $'000       Assets   Cash and cash equivalents 1,394 22,207 23,601 8,865 9,582 18,447   Trade & other receivables 1,786 - 1,786 1,786 - 1,786   Due from resolution of financial assets 21,852 65,151 87,003 28,824 59,377 88,201   Contract costs 19,037 - 19,037 47,988 - 47,988   Financial assets at fair value through profit or loss   76,150 127,579 203,729 124,839 162,896 287,735   Property, plant and equipment 129 - 129 135 - 135   Intangible assets 410 - 410 439 - 439   Other assets 1,309 48 1,356 1,174 (347) 827   Total assets 122,067 214,985 337,052 214,050 231,508 445,558         Liabilities   Trade and other payables 14,733 8,939 23,672 5,538 4,970 10,508   Tax payable (26) - (26) (6) - (6)   Employee Benefits 1,183 - 1,183 1,115 - 1,115   Borrowings 93,790 - 93,790 77,747 - 77,747   Third-party interests in consolidated entities - 206,046 206,046 - 226,538 226,538   Deferred tax liability 6,777 - 6,777 15,286 - 15,286   Total liabilities 116,458 214,985 331,442 99,680 231,508 331,188   Net assets 5,610 - 5,610 114,370 - 114,370             Consolidated Statement of Cash Flows   31 December 2025 31 December 2024   LCM Fund Consolidated LCM Fund Consolidated   $'000 $'000 $'000 $'000 $'000 $'000   Cash flows from operating activities Proceeds from litigation contracts 1,415 13 1,428 29,227 27,176 56,402 Payments for litigation contracts (15,535) (24,524) (40,059) (35,372) (42,938) (78,310) Payments to suppliers and employees (6,298) (951) (7,249) (9,579) (573) (10,152) Income tax paid - - - (28) - (28) Net cash from/(used in) operating activities (20,419) (25,461) (45,880) (15,752) (16,335) (32,088) Cash flows from investing activities Payments for property, plant and equipment - - - (3) - (3) Payments for intangibles - - - (179) - (179) Refund/(payment) of security deposits 14 - 14 (1) - (1) Net cash used in investing activities 14 - 14 (182) - (182) Cash flows from financing activities   Payments for treasury shares - - - (5,318) - (5,318) Dividends paid - - - (2,607) - (2,607) Proceeds from borrowings 15,666 - 15,666 - - - Repayments of borrowings - - - (11,358) - (11,358) Payments of finance costs (2,696) - (2,696) (3,186 ) - (3,186 ) Payments of placement fees related to third-party interests - - - (835) - (835) Contributions from third-party interests in consolidated entities - 38,145 38,145 - 40,626 40,626 Distributions to third-party interests in consolidated entities - - - - (24,572) (24,572) Net cash from/(used in) financing activities 12,971 38,145 51,116 (23,304) 16,054 ( 7,250 )   Net decrease in cash and cash equivalents (7,435) 12,684 5,250 (39,238) (281) (39,519) Cash and cash equivalents at the beginning of the period 8,865 9,582 18,447 53,024 15,089 68,113 Effects of exchange rate changes on cash and cash equivalents (36) (59) (95) 1,082 909 1,991 Cash and cash equivalents at the end of the period 1,394 22,207 23,601 14,868 15,717 30,585             Note 4. Income   31 Dec 2025 31 Dec 2024   LCM Fund Consolidated LCM Fund Consolidated   $'000 $'000 $'000 $'000 $'000 $'000   Net realised gain on investments Recoveries on resolved investments 1,094 - 1,094 51,461 97,783 149,244 Reversal of performance fees previously recognised (6,623) 6,623 - - - - Capital invested on resolved investments (7,577) (20,057) (27,635) (14,032) (41,772) (55,804)   ( 13,105 ) ( 13,435 ) ( 26,540 ) 37,429 56,010 93,439 Net unrealised gain/(loss) on investments Fair value removal on concluded investments 2,325 7,063 9,389 (34,002) (37,641) (71,643) Fair value write down on case losses under appeal (60,351) (39,107) (99,458) (10,986) (6,228) (17,214) Fair value movement on pre-hearing/trial ongoing investments 1   (3,283) (5,185) (8,468)   11,455 6,859 18,314 Foreign exchange movement on fair value (188) (465) (654) 783 2,111 2,894 (61,496) (37,694) (99,191) (32,750) (34,899) (67,650) Total gain/(loss) on investments ( 74,602 ) ( 51,129 ) ( 125,731 ) 4,679 21,111 25,789 Movement in financial liabilities related to third-party interests in consolidated entities - 51,098 51,098 - (18,382) (18,382) Total income/(loss) ( 74,602 ) ( 31 ) ( 74,633 ) 4,679 2,729 7,408     Realised gains relate to amounts where litigation risk has concluded and amounts are expected to be received by LCM. Unrealised gains or losses relate to the fair value movement of assets and liabilities associated with litigation contracts. The gain and loss related to third party interests in consolidated entities represents realised and unrealised gains and losses that relate to third party funded proportions from LCM controlled entities.     Litigation service   Consolidated   31 Dec 2025 31 Dec 2024   $'000 $'000     Litigation service revenue -  -  Litigation service expense (31,126)   -   (31,126) - Major service lines   Revenue attributable to LCM - - Attributable to third party interests - - - - Geographical regions   Australia - - - -   Litigation service revenue relates to an individual litigation asset which resolved during the period and had a contract duration of more than 4 years.     Note 5. Profit/(loss) before tax Consolidated   31 Dec 2025 31 Dec 2024   $'000 $'000   Profit/(loss) before income tax expense includes the following specific expenses: Employee benefits expense   Salaries & wages 3,342 5,074 Non-Executive directors' fees 180 239 Superannuation and pension 119 156 Share based payments expense 389 495 Other employee benefits & costs 383 725 4,412 6,688 Depreciation   Plant and equipment 6 16 Intangible assets 30 31 36 47 Corporate expenses Corporate & secretary expenses 130 247 General & Administrative Expenses 57 123 Insurance 96 215 Marketing & Advertising 21 68 Occupancy Costs 455 462 Other expenses 28 38 Professional fees 397 711 Travel & entertainment expenses 101 465 Business development expenses 13 248 Strategic review costs 309 - 1,606 2,577   Fund administration expense General administration expenses 545 478 Placement fees - 835 545 1,313 Foreign currency gains/(losses) Realised foreign exchange loss 2,006 703 Unrealised foreign exchange gain (2,692) 4,032 (686) 4,735 Finance costs Net interest on borrowings 4,475 3,257 Net finance costs of third-party interests - - Other finance costs 129 453 4,604 3,710     Note 6. Income tax expense Consolidated   31 Dec 2025 31 Dec 2024   $'000 $'000 Numerical reconciliation of income tax expense and tax at the statutory rate   Loss before income tax expense (116,276) (11,662) At the Group's statutory income tax rate of 30% (Dec 2024: 30%) (34,883) (3,499) Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Foreign tax rate adjustments 1,391 819 Share-based payments (63) 76 Other assessable income (212) - Other non-deductible expenses 14,391 368 Unrealised foreign exchange - - Change in tax rate - - Adjustment in respect of income tax 7,599 - Adjustment in respect of deferred tax of previous years 3,267 - Utilisation of carried forward tax losses - (1,073) Income tax expense / (benefit) (8,509) (3,309)     Note 7. Loss per share   31 Dec 2025 31 Dec 2024   $'000 $'000   Loss after income tax (107,767) (8,353) Loss after income tax attributable to the owners of Litigation Capital Management Limited (107,767) (8,353) Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 1 102,903,962 103,190,317 Adjustments for calculation of diluted earnings per share: Amounts uncalled on partly paid shares - - Options over ordinary shares - - Weighted average number of ordinary shares used in calculating diluted earnings per share 102,903,962 103,190,317 1 Weighted average number of ordinary shares on issue during the year, excludes treasury shares held Cents Cents Basic loss per share (104.73) (8.09) Diluted loss per share (104.73) (8.09)   Dilutive potential shares which are contingently issuable are only included in the calculation of diluted earnings per share where the conditions are met. As at 31 December 2025, there were 2,111,672 shares calculated for inclusion in diluted earnings per share, however these were not included due to their anti-dilutive effect.     Note 8. Cash and cash equivalents   Consolidated   31 Dec 2025 30 Jun 2025   $'000 $'000 Cash at Bank 1,394 8,865 Cash of third-party interests in consolidated entities 22,207 9,582 23,601 18,447   Cash of third-party interests in consolidated entities is restricted as it is held within the fund investment vehicles on behalf of the third-party investors in these vehicles. The cash is restricted to use cashflows in the litigation funding assets made on their behalf and costs of administering the fund.     Note 9. Trade receivables   Consolidated   31 Dec 2025 30 Jun 2025   $'000 $'000   Due from litigation service 1,786 1,786  1,786  1,786   As at 31 December 2025, trade receivables are expected to be settled within 12 months after the Balance Sheet date.   Allowance for expected credit losses The Group has recognised a loss of $nil (Jun 2025: $nil) in profit or loss in respect of the expected credit losses for the period ended 31 December 2025.     Note 10. Due from resolution of investments   31 Dec 2025 30 Jun 2025   LCM Fund Consolidated LCM Fund Consolidated     $'000 $'000 $'000 $'000 $'000 $'000       At start of period 28,824 59,377 88,201 3,980 - 3,980   Recoveries on resolved investments (note 4) 1,094 - 1,094 49,672 94,105 143,777   Reversal of performance fees previously recognised (note 4) (6,623) 6,623 - - - -   Reimbursement of deployed capital 126 13 139 901 - 901   Proceeds from litigation funding assets (1,220) (13) (1,233) (23,686) (31,136) (54,821)   Foreign exchange gain (350) (849) (1,198) (2,043) (3,592) (5,635)   Balance as at end of period 21,852 65,151 87,003 28,824 59,377 88,201         Note 11. Contract costs - litigation contracts   31 Dec 2025 30 Jun 2025   $'000 $'000   Litigation contracts - ongoing 10,383 39,786 Litigation contracts - under appeal 8,654 8,202 19,037  47,988   There are a small number of legacy investments which are still being recorded under AASB 15 Revenue from Contracts with Customers due to the timing the contracts were entered into. These are expected to resolve in the short to medium term.   Reconciliation of litigation contract costs Reconciliation of the contract costs at the beginning and end of the current period and previous financial year are set out below:   31 Dec 2025 30 Jun 2025   $'000 $'000 Balance at 1 July 47,988 42,072 Additions during the period 2,175 11,384 Realisations of contract assets (31,126) (5,468) Balance as at end of period 19,037 47,988   Additions during the year relate to matters that progressed to trial, which required significant investment in their final stages.   The Group has recognised impairment losses of $nil (June 2025: $5,468) in profit or loss on contract costs for the period ended 31 December 2025.     Note 12. Investments   31 Dec 2025 30 Jun 2025   LCM Fund Consolidated LCM Fund Consolidated     $'000 $'000 $'000 $'000 $'000 $'000       At start of period 124,839 162,896 287,735 202,913 262,300 465,213   Deployments 22,613 26,878 49,491 35,969 60,165 96,134   Capital realised during the period (note 4) (7,577) (20,057) (27,635) (27,485) (72,649) (100,134)   Fair value removal on concluded investments (note 4) 2,325 7,063 9,389 (49,020) (44,997) (94,017)   Fair value write down on case losses under appeal (note 4) (60,351) (39,107) (99,458) (44,536) (41,773) (86,309)   Fair value movement on pre-hearing/trial ongoing investments (note 4) (3,283) (5,185) (8,468) (6,824) (21,292) (28,115)   Foreign exchange movements (2,416) (4,908) (7,324) 13,820 21,142 34,962   Balance as at end of period 76,151 127,579 203,729 124,839 162,896 287,735       Investments are financial instruments that relate to the provision of capital in connection with legal finance. The Group fund through both direct investments as well as using third party capital via a fund management model. The table above sets forth the changes in litigation funding assets at the beginning and end of the relevant reporting periods.                                                                                                                                               Note 13. Trade and other payables Consolidated   31 Dec 2025 30 Jun 2025   $'000 $'000  Trade payables 23,512 10,227  Other payables 159 281 23,672 10,508     Note 14. Borrowings   Consolidated   31 Dec 2025 30 Jun 2025   $'000 $'000 Borrowings 93,790 77,747 93,790 77,747   Reconciliation of borrowings of LCM:     31 Dec 2025 30 Jun 2025   $'000 $'000  Balance 1 July 77,747 61,917  Proceeds from borrowings 15,666 25,039 Non-cash interest and borrowing costs capitalised 4,214 -  Repayment of borrowings - (12,864)  Payments for borrowing costs (694) (487) Non-cash borrowing costs (2,185) -  Net accrued interest (3) 5  Amortisation 419 611 Refinance - foreign exchange movements - 1,522 Foreign exchange movements (1,374) 2,005 93,790 77,747     On 2 December 2024, LCM refinanced its credit facility with Northleaf Capital Partners for an initial amount of US$75,000,000, AUD equivalent of $112,442,000 1 (the "Facility"), with a potential to upsize by a further US$75,000,000 (total US$150,000,000, AUD equivalent $224,885,000).   Interest is calculated by reference to the applicable currency benchmark, being the US Federal Funds Rate for USD drawings, the Bank Bill Swap Reference Rate (BBSY) for AUD drawings, and SONIA for GBP drawings (with fallback to the Bank of England base rate), together with a 5.25% margin.   The Facility has an overall term of four years and is secured against LCM's assets. As at 31 December 2025, LCM's outstanding utilisation amounted to US$13,032,000 on the initial credit facility, an AUD equivalent of $19,538,000 1 .   LCM agreed to various debt covenants including a minimum effective net tangible worth, borrowings as a percentage of effective net tangible worth, minimum liquidity, a minimum consolidated EBIT and a minimum multiple of invested capital on concluded contract assets over a specified period.   LCM incurred costs in relation to arranging the Facility of $3,671,000 which were reflected transactions costs and will be amortised over the 4 year term of the borrowings. As at 31 December 2025, $3,337,000 of these loan arrangement fees remained outstanding.    1 Converted at the functional currency spot rates of exchange at the reporting date                                                                Note 15.                Financial liabilities related to third-party interests in consolidated entities       31 Dec 2025 30 Jun 2025   $'000 $'000 Balance 1 July 226,538 264,950 Proceeds - capital contributions from Limited Partners 38,145 67,106 Payments - distributions to Limited Partners - (33,959) Movement on financial liabilities related to third-party interests in consolidated entities (note 4) (51,098) (90,133) Non-cash movements in third-party assets and liabilities (6,811) 9,705 Foreign exchange movements (728) 8,869 Balance as at end of period 206,046 226,538       Note 16. Equity - issued capital   31 Dec 2025 30 Jun 2025 31 Dec 2025 30 Jun 2025 Shares Shares $'000 $'000 Ordinary shares - fully paid 103,136,382 102,690,913 62,147 61,494 Ordinary shares - loan share plan and Employee Benefit Trust 11,144,917 11,590,384 (860) (860) 114,281,297 114,281,297 61,287 60,634 31 Dec 2025 30 Jun 2025 Movements in ordinary share capital Shares $'000 Shares $'000 Balance at 1 July 102,690,913 61,494 104,118,534 69,990 Options exercised 445,467 652 740,764 1,359 Share Buy-Back Programme (treasury shares) - - (2,168,385) - Treasury shares cancelled - - - (9,854) Balance at period end 103,136,380 62,147 102,690,913 61,494   Movements in ordinary shares issued under loan share plan ('LSP') and held by Employee Benefit Trust:   31 Dec 2025 30 Jun 2025 Shares $'000 Shares $'000 Balance at 1 July 11,590,384 (860) 12,331,148 - Options exercised (445,467) - (666,547) - LSPs exercised - - (858,736) - LSPs purchased by EBT - - 784,519 (860) Balance at period end 11,144,917 (860) 11,590,384 (860)   Reconciliation of ordinary shares issued under LSP: 31 Dec 2025 30 Jun 2025 Total shares allocated under existing LSP arrangements with underlying LSP shares (note 20)                   6,550,366 6,642,872 Less shares allocated under existing LSP arrangements without underlying LSP shares (note 20)                   (128,961) (221,467) Shares held by LCM Employee Benefit Trust for future allocation under employee share and option plans 4,723,512 5,168,979 11,144,917 11,590,384   Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital.   On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.   Ordinary shares - under loan share plan ('LSP') The Company has an equity scheme pursuant to which certain employees may access a LSP. The acquisition of shares under this LSP is fully funded by the Company through the granting of a limited recourse loan. The shares under LSP are restricted until the loan is repaid. The underlying options within the LSP have been accounted for as a share-based payment. Refer to note 20 for further details. When the loans are settled the shares are reclassified as fully paid ordinary shares and the equity will increase by the amount of the loan repaid.   Ordinary shares - held by Employee Benefit Trust The Employee Benefit Trust ('EBT')  holds performance related shareholdings awarded to former executive which did not vest. The Trust holds 4,723,512 shares which remain unallocated as at 31 December 2025 (June 2025: 5,168,979).   Ordinary shares - partly paid As at 31 December 2025, there are currently 1,433,022 partly paid shares issued at an issue price of $0.17 per share. No amount has been paid up and the shares will become fully paid upon payment to the Company of $0.17 per share. As per the terms of issue, the partly paid shares have no maturity date and the amount is payable at the option of the holder.   Partly paid shares entitle the holder to participate in dividends and the proceeds of the Company in proportion to the number of and amounts paid on the shares held. The partly paid shares do not carry the right to participate in new issues of securities. Partly paid shareholders are entitled to receive notice of any meetings of shareholders. The partly paid shareholders are entitled to vote in the same proportion as the amounts paid on the partly paid shares bears to the total amount paid and payable.   Capital risk management The Group's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital.   Capital is regarded as total equity as recognised in the statement of financial position.   In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.   The capital risk management policy remains unchanged from the 30 June 2025 Annual Report.   Note 17. Equity - dividends   31 Dec 2025 30 Jun 2025   $'000 $'000 Ordinary dividend paid (December 2025: nil, June 2025: 1.25 cents) - 2,680   Franking credits The franking credits available to the Group as at 31 December 2025 are $5,000 (June 2025: $5,000).   Note 18. Fair value measurements   The fair value measurements used for all assets and liabilities held by the Group listed below are level 3:   Assets 31 Dec 2025 30 Jun 2025 Litigation funding assets $'000 $'000    APAC 87,831 81,220    EMEA 115,898 206,515 Total Level 3 assets 203,729 287,735 Liabilities   Financial liabilities related to third-party interests in consolidated entities 206,046 226,538 Total Level 3 liabilities 206,046 226,538     Refer note 12 for movements in level 3 assets and note 15 for movements in level 3 liabilities. There were no transfers into or out of level 3 during the period ended 31 December 2025.   As at 31 December 2025, the financial liability due to third-party interests is $206,046,000 (June 2025: $226,538,000), recorded at fair value as represented in note 15. Amounts included in the consolidated statement of financial position represent the fair value of the third-party interests in the related financial assets and the amounts included in the consolidated statement of profit or loss and other comprehensive income represent the third-party share of any gain or loss during the period, see note 3.     Sensitivity of Level 3 Valuations The Group's fair value policy provides for ranges of percentages to be applied against the risk adjustment factor to more than 159 discrete objective litigation events. The tables below set forth each of the key unobservable inputs used to value the Group's LFA assets and the applicable ranges and weighted average by relative fair value for such inputs.   The Group implemented a new valuation methodology for LFA assets during the year ended 30 June 2023. LFA assets are fair valued using an income approach which is the technique adopted for LFA Assets. Under the income approach, future cash flows associated with; cash out flows, including investments and deployments, and cash inflows such as settlements or resolutions, are converted to a single current (discounted) amount, reflecting current market expectations about those future amounts. That is, the amount that could reasonably be expected to be paid to acquire the asset at that point in time. In developing our framework we also looked to Industry peers for alignment in methodology, the benefit being that adopting a similar methodology provides a level of comparability. Similar to industry peers, the framework developed applied probabilities based on observable milestones for each investment within the portfolio as well as making informed assumptions around inputs such as discount rates, timing and risk factors, all of which are considered Level 3 inputs. In cases where cash flows are denominated in a foreign currency, forecasts are developed in the applicable foreign currency and translated to AUD dollars.   A Discounted Cash Flow approach is then applied to each underlying investment on an individual basis to arrive at a net present value of the future expected cash flows.   The cash flow forecast is updated each reporting period, based on the best available information on progress of the underlying matter at the time. These objective events could include, among others: - Stage of the investment - ongoing developments - progress - recovery or sovereign risk - legal team expertise - other factors impacting the expected outcome   Each reporting period, the updated risk-adjusted cash flow forecast is then discounted at the then current discount rate to measure fair value. The discount rate includes an applicable risk-free rate and credit spread to incorporate both market and idiosyncratic asset-class risk.   The Group's fair value policy provides for ranges of percentages to be applied against the risk adjustment factor to more than 159 discrete objective litigation events. The tables below set forth each of the key unobservable inputs used to value the Group's LFA assets and the applicable ranges and weighted average by relative fair value for such inputs.   31 December 2025   Item Valuation technique Unobservable Input 1 Min Max   Weighted average   Litigation funding asset Discounted cash flow Discount rate 9.6% 10.6% 10.11% Duration (years) 2.50 8.08 5.44 Adjusted risk premium (50%) 80% (6%) Adjusted risk premium - case milestone Min 2 Max 2   Weighted average % of portfolio 3 Pre-commencement & commenced 0% 0% 0% 51% Pleadings 0% 10% 4% 6% Discovery & evidence 10% 20% 14% 15% Significant ruling or other objective event prior to trial court judgment 20% 65% 50% 1% Settlement 90% 90% 0% 0% Trial court judgment or tribunal award (100%) 75% (39%) 9% Appeal judgment (100%) 80% (32%) 14% Enforcement (50%) 80% (20%) 4%   30 June 2025   Item Valuation technique Unobservable Input 1 Min Max   Weighted average   Litigation funding asset Discounted cash flow Discount rate 10.2% 10.9% 10.6% Duration (years) 2.42 7.67 5.45 Adjusted risk premium (60%) 80% 10% Adjusted risk premium - case milestone Min 2 Max 2   Weighted average % of portfolio 3 Pre-commencement & commenced 0% 0% 0% 56% Pleadings 0% 10% 2% 9% Discovery & evidence 10% 20% 15% 10% Significant ruling or other objective event prior to trial court judgment 20% 65% 64% 6% Settlement 90% 90% 0% 0% Trial court judgment or tribunal award (100%) 75% (22%) 8% Appeal judgment (100%) 80% (46%) 8% Enforcement 80% 80% 80% 3%   1 Minimum and maximum within each cohort represent the actual adjusted risk premiums applied in the period 2 Percentage of portfolio represents the percentage of the book within the cohort     Note 19. Contingent liabilities   Potential clawback of Fund 1 performance fees The Group is entitled to receive performance fees when investment returns of the Funds exceed specified performance thresholds. These performance fees are calculated by reference to realised investment outcomes and are distributed before the final outcome of all investments within the fund is known.   In certain circumstances, fund documentation provides a mechanism under which performance fees previously distributed may be required to be returned. This is intended to ensure that, over the life of the fund, performance fees ultimately retained by the Group are aligned with the overall performance of the fund and the outcomes achieved for investors. Any requirement to return performance fees is conditional on specific future events. As a result, the existence and timing of any obligation to repay performance fees is uncertain.   The Group has assessed its potential exposure having regard to the contractual terms of the fund documentation, and based on current information and reasonable assumptions, should the relevant conditions arise and a repayment be required, the amount of performance fees that could potentially be subject to clawback is estimated to range between approximately $12 million and $17 million.   In forming this estimate, the Group has considered the current status of the Fund's remaining investments and historic performance, however the outcome remains dependent on future events not wholly within the Group's control.   Under-insured adverse costs exposure In certain jurisdictions, litigation funding arrangements entered into by the Group include undertakings to meet adverse costs awarded to the successful party in the event that funded litigation is unsuccessful. The occurrence and quantum of any adverse cost award is inherently uncertain and dependent on the outcome of litigation proceedings, and accordingly it is not possible to predict whether or when such costs may be incurred.   The Group maintains adverse costs insurance arrangements (commonly referred to as after-the-event or ATE insurance) which mitigate the financial impact of adverse cost awards. While these arrangements substantially reduce the Group's exposure, a residual risk may exist in respect of adverse cost awards that may not be fully covered by insurance.   The recent outcome in the Queensland Electricity class action (a funded matter where the claim was unsuccessful and adverse costs were quantified by the Federal Court of Australia in late 2025 at approximately A$32.4 million in total) highlighted the potential for ATE insurance to be insufficient to fully cover such awards in certain cases, resulting in a material uninsured exposure for the Group and/or relevant fund investors. In light of this development, the Group has undertaken a comprehensive review of its other currently funded investments to reassess the adequacy of existing ATE insurance arrangements and the potential residual risks of under-insurance across the portfolio.   As at the reporting date, based on the Group's assessment of its currently funded investments, the potential exposure to adverse costs not covered by insurance remains contingent on the outcome of litigation matters and cannot be reliably predicted or measured with sufficient certainty for recognition as a provision. Based on current information and reasonable assumptions, should one or more funded matters be unsuccessful and adverse cost awards be made which are not fully covered by insurance, the Group estimates that the potential under-insured adverse cost exposure for LCM could range between approximately A$4 million and A$8 million.   In forming this assessment, the Group has considered the status of funded proceedings, applicable insurance arrangements (including policy limits and any lessons from recent cases such as the Queensland Electricity class action), historical experience, jurisdictional factors, and the inherent uncertainties in litigation outcomes.     Note 20. Share-based payments     The share-based payment expense for the period was $389,000 (December 2024: $590,000).   Loan Funded Share Plans ('LSP') As detailed in note 16, the Group has an equity scheme pursuant to which certain employees may access a LSP. The shares under LSP are issued at the exercise price by granting a limited recourse loan. The LSP shares are restricted until the loan is repaid. Options under this scheme can be granted without an underlying LSP share until they have been exercised and on this basis, do not form part of the Group's issued share capital. The underlying options have been accounted for as a share-based payments. The options are issued over a 1-3 year vesting period. Vesting conditions include satisfaction of customary continuous employment with the Group and may include a share price hurdle.   During the period the Group granted nil (June 2025: nil) shares under the LSP.   Set out below are summaries of shares/options granted under the LSP:                 31 December 2025                                                                            Grant date  Expiry date  Exercise Price  Balance at the start of the period  Granted  Exercised  Expired/ forfeited/ other Balance at the end of the period   04/12/2017 04/12/2027 $0.60 2,000,000 - - - 2,000,000   19/11/2018 25/11/2028 $0.47 1,595,058 - - - 1,595,058   03/12/2018 03/12/2028 $0.89 100,000 - - - 100,000   01/11/2019 01/11/2029 £0.7394 918,694 - - - 918,694   13/10/2020 13/10/2030 £0.6655 458,224 - - - 458,224   27/10/2021 27/10/2031 £1.06 1,349,429 - - - 1,349,429   27/10/2021 27/10/2031 £1.06 99,037 1 - - (5,452) 93,585 1   27/10/2021 27/10/2031 £1.14 122,430 1 - - (87,054) 35,376 1   6,642,872 - - (92,506) 6,550,366     1 Options granted without an underlying LSP share until exercised ie, do not form part of the Group's issued share capital   Deferred Bonus Share Plan ('DBSP')           The Company has in place a DBSP. Options granted under the DBSP reflect past performance and are in the form of nil cost options and will vest in three equal tranches from the date of issue and are subject to continued employment over the three year period.   In addition, the Options granted under the DBSP are subject to malus and clawback provisions. In the event of a change of control of the Company, unvested awards will vest to the extent determined by the Board, taking into account the proportion of the period of time between grant and the normal vesting date that has elapsed at the date of the relevant event.   During the period the Group granted nil (June 2025: 532,235) options under the DBSP.   Set out below are summaries of options granted under the DBSP:   31 December 2025 Grant date Expiry date Exercise Price Balance at the start of the period Granted Exercised Expired/ forfeited/ other Balance at the end of the period 07/10/2022 07/10/2032 $0.00 434,967 - (183,661) (66,764) 184,542 04/10/2023 04/10/2033 $0.00 547,832 - (125,478) (89,335) 333,019 04/10/2024 04/10/2034 $0.00 532,235 - (136,328) (20,416) 375,491 1,515,034 - (445,467) (176,515) 893,052   Executive Long Term Incentive Plan ('LTIP') The Company has in place an Executive LTIP. Options granted under the LTIP in the form of nil cost options and are subject to performance conditions which require the growth of Funds under Management ('FuM') over a five year performance period.   During the period, all LTIPs lapsed as the performance conditions were not satisfied.                                                                 31 December 2025    Grant date  Expiry date  Exercise Price  Balance at the start of the period  Granted  Exercised  Expired/ forfeited/ other Balance at the end of the period 07/10/2022 07/10/2032 $0.0000 5,671,516 - - (5,671,516) - 5,671,516 - - (5,671,516) -     Note 21. Events after the reporting period   On 12 January 2026, the Group announced a positive development in its international arbitration claim against the Republic of Poland, where the Singapore court rejected Poland's application to set aside the Energy Charter Treaty award. On 2 February 2026, the Group announced an increase in its credit facility together with an extension of the debt covenant waiver from its lender. On 11 March 2026, the Group announced that its funded party had been successful in the High Court of Australia in a trademark dispute claim in which LCM had invested A$3.3 million. The matter will now proceed to the Full Court for the quantification of costs and damages. On 17 March 2026, the Group announced that an adverse judgment had been delivered in an Australian commercial litigation claim funded by the Group with A$1.4 million of shareholder capital. The Group is reviewing the judgment and considering its options. The Strategic Review, which was commenced in September 2025, continues to progress.     Directors' Declaration   In the directors' opinion:   ·      the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standards and other mandatory professional reporting requirements;                         ·      the attached financial statements and notes comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as described in note 2 to the financial statements; ·      the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 31 December 2025 and of its performance for the period ended on that date; ·      there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.   Signed in accordance with a resolution of directors.                                                                                   On behalf of the directors                                                                                                                      Director                                                                Dated this 31st day of March 2026                  -end-          

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