Litigation Capital Management (LIT) H2 2024 earnings summary

Executive summary

• Achieved total income of A$44.7 million for FY24, with profit before tax of A$16.1 million and a 2.4x MOIC on concluded investments; 13-year track record of 2.9x MOIC.

• Net assets per share increased to 94p; final dividend declared at 1.25p per share; ongoing share buyback program.

• Eight investments matured, generating A$56 million revenue; post-period realization of A$13.5 million at a 9.5x MOIC.

• New commitments rose to A$279 million, with committed capital at A$725 million; transition to asset management model underway.

• Raised over US$440 million in third-party capital across two funds; Fund III marketing to begin late 2024.

Financial highlights

• Operating profit for FY24 was A$26.3 million; net income A$12.7 million; basic EPS 12.01c.

• Net realized gains from concluded investments were A$32.2 million; performance fees of A$12.7 million.

• Operating expenses increased to A$19 million, mainly due to salary increases and headcount.

• Cash at period end was A$53 million; net debt A$8.9 million; net assets A$188.9 million.

• New commitments reached A$279 million; committed capital at period end was A$725 million.

Outlook and guidance

• Strategic focus on scaling the asset management business, disciplined U.S. market entry, and leveraging AI/data analytics for origination and underwriting.

• Targeting 15%-20% CAGR in net assets per share over the medium term.

• Fund III expected to be larger than Fund II, with a target of GBP 350–400 million; marketing to commence late 2024.

• Anticipates continued demand for funding across all markets, with litigation funding seen as non-cyclical.

• Significant long-term growth opportunity in the underpenetrated global legal finance market.