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The Markets
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Financial Services

Manolete Partners reports 52% earnings jump in maiden interims

The firm reported that its EBIT for the first half rose to £3.3mln from £2.1mln a year ago while revenues climbed 31% to £6.5mln

Manolete Partners PLC (LON:MANO) has reported a 52% jump in its underlying earnings (EBIT) in its first set of interims since listing on AIM last Friday.

The firm, which finances insolvency litigation, reported that its EBIT for the first half rose to £3.3mln from £2.1mln a year ago while revenues climbed 31% to £6.5mln.

READ: Insolvency litigation funder Manolete Partners makes fast start to life on AIM

Manolete also said investment in cases had grown 75% to £13.9mln compared to a year ago, adding that it had signed a 3-year sponsorship agreement this week with the Restructuring and Insolvency Community, part of the Institute of Chartered Accountants in England and Wales.

The company also reported that it had “significantly increased” its capital capability and financial covenant with an extension of its revolving credit facility with HSBC to £20mln from £10mln at a maximum rate of LIBOR plus 2.75%.

Manolete also raised net proceeds of £14.7mln from its initial public offering (IPO) last week, with the chief executive Steven Cooklin saying the group looked forward to the second half “with confidence and enthusiasm”.

The company’s shares were admitted to AIM on 14 December at an IPO price of 175p. As of lunchtime trading Wednesday, they are at 195.5p, an increase of nearly 12%.

The group is also backed by UK venture capital stalwart Jon Moulton.

Cooklin added that the IPO proceeds and the new credit facility would allow the firm to accelerate its growth plans by “financing more and larger insolvency cases”.

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