Litigation Capital Management (LIT) Trading Update summary

Trading performance

• Achieved four case wins and three losses, resulting in a 3.7x multiple of invested capital on realisations for H1 FY25.

• Realisations totaled A$52m from A$14m invested capital, including a successful international arbitration against Poland.

• Fair value movements contributed A$1m, despite a A$7m write-down on the Queensland Electricity case.

• Anticipates a modest loss after tax of approximately A$8m for H1 FY25, compared to a profit of A$7.3m in H1 FY24.

• Net debt increased to A$40.1m, reflecting higher investment activity; secured a new US$75m credit facility.

Capital deployment and commitments

• New commitments for H1 FY25 were A$25m, down from A$90m in H1 FY24, due to fewer qualifying opportunities.

• Management remains confident in future capital deployment and expects opportunity flow to normalize.

Business model and outlook

• Operates through direct investments and third-party fund management, focusing on single-case, portfolio, and claim acquisition strategies.

• Generates revenue from direct investments and performance fees.

• CEO highlights strong realisations and disciplined approach, expressing confidence in delivering attractive returns in H2 FY25.