Manolete Partners – Full Year Results

Manolete Partners – Full Year Results

Manolete (AIM:MANO), the UK’s leading insolvency litigation financing company, today announces its audited results for the year ended 31 March 2019.

Financial (statutory and non-statutory) highlights:

  • Revenue up 30% to £13.8m (FY18: £10.6m)
  • Gross profit up 49% to £10.1m (FY18: £6.8m)
  • EBIT pre-exceptionals up 77% to £7.2m (FY18: £4.1m)
  • Profit before tax(before exceptional IPO costs) up 85% to £6.8m(FY18:£3.7m)
  • Profit after tax (adjusted for exceptionals) up 70% to £5.5m (FY18: £3.3m)
  • Proforma earnings per share (adjusted for exceptionals)1 up 70% to 13 pence (FY18: 8 pence)
  • Maiden proposed final dividend of 1.49 pence per share
  • Investment in cases up 72% to £18.2m (FY18: £10.6m)
  • Case gross cash inflow of £8.8m up 48% in FY19 (FY18: £5.9m)
  • Cash balances of £9.7m, no debt

Operational highlights:

  • 103% increase in new core UK insolvency cases: 59 in FY19 (FY18: 29), excluding Cartel Cases
  • In total, 61 new case investments in FY19 (FY18: 49), representing a 24% increase
  • Ongoing delivery of realised returns: 35 case realisations in FY19, generating gross proceeds of £9.3m (FY 18: 33 case realisations generating £9.0m of gross proceeds)
  • Continued increase in average size of realised case completions: realised gross profits grew by 20% to £3.5m in FY19 (FY18: £2.9m)
  • ROI for all case completions since inception of 180%
  • Average money multiple of 2.8 times for all cases completed since inception
  • Average case duration across the full portfolio of 195 completed cases is 11.6 months
  • 47% increase in live cases: 84 in process as at 31 March 2019 (57 as at 31 March 2018)
  • Roll-out of regional network with in-house lawyers recruited in: North West, South West & Wales, Eastern, North East, Scottish and Southern regions of the UK
  • New case enquiries at all-time record levels for the four months ending 31 May 2019
  • At the time of writing, 44 new case investments made since IPO in December 2018 (averaging c. 7.3 new case investments per month)
  • At the time of writing, 19 cases completed since IPO (averaging over 3 case completions per month)
  • Currently 99 live cases ongoing
  • Successful IPO on London Stock Exchange’s AIM market raising net proceeds of £14.6m
  • Significantly increased capital capability and financial covenant – extension of revolving credit facility with HSBC from £10m to £20m at a maximum rate of LIBOR plus 2.75% plus £14.6m net IPO proceeds
  • Three key strategic partnership agreements signed: exclusive three-year sponsorship contract with the Institute of Chartered Accountants in England and Wales (Restructuring and Insolvency Community); Key Strategic Partner of R3 (the insolvency industry’s trade body); three year sponsorship deal with the Insolvency Practitioners Association.  

A copy of the annual report and accounts will be available on the Company’s website today and will be posted to shareholders in due course.  

Steven Cooklin, Chief Executive, commented:

“We are delighted to announce our first set of annual results as a public company, following our AIM flotation in December 2018. This strong set of results is the latest milestone in our track record of delivering profitable growth, underpinned by our core ability to source, analyse and price complex legal risk. We achieved impressive double-digit growth in revenue and EBIT during the period, delivering continued outstanding investment returns yielding an average money multiple of 2.8x and ROI of 180% on completed cases since inception. The activity levels within the business are at record levels, highlighted by the 44 new case investments that the team has made since the IPO. This firmly underpins our confidence in the current and future trading performance of the business.

“We look forward to working with many more Insolvency Practitioners and their lawyers, as we deploy the proceeds of the IPO, as well as the enhanced debt facility with HSBC, to accelerate our growth plans through financing more and larger insolvency cases, and to delivering continued stand-out returns for insolvency creditors and shareholders alike.”

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