Litigation Capital Management Ltd Fair Value Accounting and Dividend Payment (2935G)
18 Julio 2023 - 1:00AM
UK Regulatory
TIDMLIT
RNS Number : 2935G
Litigation Capital Management Ltd
18 July 2023
18 July 2023
Litigation Capital Management Limited
("LCM" or the "Company")
Transition to Fair Value Accounting and Dividend Payment
Litigation Capital Management Limited (AIM:LIT), a leading
alternative asset manager of disputes financing solutions, provides
a market update for the twelve month period to 30 June 2023
("FY2023").
Following a number of recent resolutions in the second half of
FY23, the result for the full year will deliver LCM's strongest
performance to date by a significant margin. The Company is well
positioned for the year ahead with in excess of A$80m in cash held
at period end. We will provide further details with the release of
our year end results.
The Company wishes to update the market on two important
developments.
Reporting update - Transition to Fair Value Accounting
The evolution of the Company's business over the past two years,
transitioning away from the legacy direct investments business
model and towards positioning LCM as an Alternative Asset Manager,
necessitated the need to review the Company's accounting policies.
In consultation with our advisers, the Board has taken the
important decision to transition to Fair Value accounting. This
will put LCM in line with industry peers in both accounting policy
and fair value framework. In doing so, we expect to announce our
audited results for FY2023 under both the existing accounting
policies as well as the newly adopted Fair Value accounting. This
will provide our investors with better transparency on the impact
of the transition.
Dividend
Following the strong financial performance of the business
during FY2023, the Board has decided to pay a dividend of 2.25p per
ordinary share payable to Shareholders. The dividend timetable for
this distribution will be contained within the FY2023 results
announcement.
Patrick Moloney, Chief Executive Officer, commented: "We are
pleased with the performance of the business over the past 12
months, particularly as we begin to see the benefits of moving to a
fund management business model. Our strong financial performance is
the best in LCM's history and reflected in the Board's decision to
pay a dividend."
Jonathan Moulds, Chair, commented: "The transition to Fair Value
accounting is a significant milestone for LCM. We believe this
decision just taken by the Board should be welcomed by investors.
Given the strong performance, the underlying pipeline and cash
reserves LCM has built up, it is an appropriate time to pay this
dividend. The Board will continue to keep under review the optimal
way to return value to shareholders, balancing our future
investment opportunities with the importance of rewarding our
shareholders."
Enquiries
Litigation Capital Management c/o Tavistock PR
Patrick Moloney, Chief Executive
Officer
Mary Gangemi, Chief Financial
Officer
Canaccord (Nomad and Joint Tel: 020 7523 8000
Broker)
Bobbie Hilliam
Investec Bank plc (Joint Tel: 020 7597 5970
Broker)
David Anderson
Tavistock PR Tel: 020 7920 3150
Tim Pearson / Katie Hopkins LCM@Tavistock.co.uk
NOTES TO EDITORS
About LCM
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.
LCM has an unparalleled track record driven by disciplined
project selection and robust risk 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
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of article 7 of the Market Abuse Regulation (EU) 596/2014 as
amended by regulation 11 of the Market Abuse (Amendment) (EU Exit)
Regulations 2019/310. With the publication of this announcement,
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END
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