Litigation Capital Management Limited (LCM) (LON:LIT) extended its strong debut performance on Friday, jumping another 9% after it announced that a settlement has been reached in respect of one of its litigation projects.
The litigation financing solutions provider – which started conditional trading on AIM on Wednesday - said the project is expected to contribute over A$$1.5mln in revenue for the current financial year to 30 June 2019, with a similarly sized contribution to underlying earnings (EBITDA).
READ: Litigation Capital Management sees strong debut performance on AIM following £20mln fundraising
The group said the litigation project, which reached settlement in less than one month, is the third litigation project that LCM has completed in the current financial year.
It added that the parties involved in the litigation project are undisclosed, but it relates to an international arbitration case.
LCM also announced that it has entered into an agreement to provide litigation finance in relation to proceedings brought in the Supreme Court of Western Australia.
It said the terms of the funding agreement are subject to confidentiality between the parties involved and are therefore undisclosed.
Patrick Moloney, LCM’s CEO of LCM commented: "The ability of LCM to manage this litigation project to completion in such a short time period is reflective of LCM's active project management approach in an opportunistic situation and we will look to replicate this where we can.”
He added: “Across the diverse portfolio of litigation projects we finance, international arbitration is one of a number of sectors in which we expect to see continued growth in the coming years, particularly in markets such as Hong Kong and Singapore."
In early morning trading, LCM shares were 9.5% higher at 69.50p having been placed at 52p each this week.