Litigation Capital Management (LIT) Trading Update summary

Funded case judgment

• High Court in London ruled against the funded party in a commercial litigation matter, with LCM investing £3.4m and Fund I contributing £8.2m.

• As of 31 December 2024, the investment was valued at £5.0m on the balance sheet; adverse costs are covered by ATE insurance.

• LCM is reviewing the judgment and considering next steps with legal representatives.

Trading update and financial performance

• Second half of FY25 saw modest realisations: two successful and two unsuccessful investments, excluding certain cases under appeal.

• FY25 realisations totaled A$55m with A$19m invested, yielding a MOIC of 2.9x; H2 realisations were notably lower than H1.

• Net debt is projected at approximately A$73m at 30 June 2025, up from A$8.9m in FY24, due to continued case investments and modest cash inflows.

Fund III and strategic outlook

• Strong investor interest in Fund III, but marketing is paused due to US tax uncertainty and political developments affecting institutional investors.

• No direct exposure to US tax proposals; marketing for Fund III expected to resume in late 2025 or early 2026.

• New commitments for FY25 are expected to be around A$80m, down from A$270m in FY24, reflecting a focus on balance sheet discipline.

• A strategic update will be provided with full year results in September, including an assessment of the current portfolio and future priorities.