Litigation Capital Management Ltd (AIM:LIT), a provider of upfront litigation finance, anticipates 25% revenue growth in 2022, it said in a market update today.
The Australia-based firm said that, based on its unaudited financial results for the year through to 30 June 2022, gross turnover increased by a quarter and adjusted operating profit rose by 15%.
This was despite the dismissal of its vice-chairman Nick Rowles-Davies late last year for alleged misconduct relating to expenses claims.
The revelation that Rowles, who was chair of the Commercial Litigation Association, had been dismissed for an alleged breach of company rules shocked the litigation funding community.
Litigation Capital, which provides litigation funding in cases where the money can be recovered from legal claims, reported a decrease in applications for the recent year, which it said reflected “disrupted trading conditions”.
The firm grew assets under management to A$414mln at the end of June, despite the delays that have hampered the justice system, up from A$343mln six months earlier, it said in today’s statement.
At the end of the financial year to 30 June, it held A$29mln of cash, according to the market update.
The firm’s chief executive Patrick Moloney said: “I'm pleased with our resilient performance for the second half of the financial year, despite continued challenging external conditions, in which we have maintained our level of commitments alongside growing our assets under management.
“Noting that the average life of these investments is historically 27 months, as our investments become larger and more complex, we expect the investment period to increase to between 36 and 42 months. With the current market instability and uncertainty, we remain very confident in [Litigation Capital Management]'s growth prospects."