Litigation Capital Management (LIT) H2 2025 earnings summary

Executive summary

• Reported unprecedented investment losses for the year ended 30 June 2025, marking a significant deviation from a historically strong 14-year track record.

• Shifted strategic focus to active case management, downsized team, and halted new investments to concentrate on existing portfolio.

• Engaged Luminis Partners to explore strategic options, including potential mergers, acquisitions, or a go-private transaction.

• CEO is returning to hands-on investment management to restore historical performance.

• Cleared of all allegations in a Dubai investigation, which had previously delayed strategic initiatives.

Financial highlights

• 12 investments concluded: 6 wins and 6 losses, generating AUD 50 million in revenue and a 1.8x multiple of invested capital.

• Large negative fair value movement of AUD 100 million, driven by adverse case outcomes and more conservative valuation.

• Net loss for FY25 was AUD 72.9 million, compared to a net profit of AUD 12.7 million in FY24.

• Net assets at period end were AUD 114 million (approx. 50p per share), expected to fall to 25–30p per share after further write-downs.

• Cash declined from AUD 53 million to AUD 8.9 million over the year.

Outlook and guidance

• Focused on managing existing investments to profitable conclusion and reducing debt.

• Strategic review underway, with all options on the table, benchmarked against a run-off scenario.

• Expectation of modest new commitments and further reduction in operating expenses.

• Confident in 18-month timeline for GreenX/Poland award enforcement, with low probability of both set-aside challenges succeeding.

• Positive engagement with lenders and commitment to restoring shareholder value.