Litigation Capital Management shares were down 7% to 86.1p in late afternoon trading on Friday after the group announced an anticipated FY 2022 revenue approximately 25% higher year-on-year and a 15% rise in adjusted operating profit.
The asset manager reported cash of $29 million at the period end, with total assets under management growing to $414 million.
Litigation Capital Management added that a decline in overall applications over the term reflected disrupted trading conditions, however commitments were broadly in line with the year before, which the firm claimed indicated progress on improving the quality of applications.
The group further mentioned two material investments which moved into future financial periods, highlighting that while similar delays were diminishing, they remained present in the portfolio.
The firm emphasised that the delay was a timing issue as opposed to a reflection of the company’s current or future financial performance.
Litigation Capital Management commented that it would not provide market guidance, due to the volatile and unpredictable nature, and complexity of its investments.
“I’m pleased with our resilient performance for the second half of the financial year, despite continued challenging external conditions, in which we have maintained our level of commitments alongside growing our assets under management,” said Litigation Capital Management CEO Patrick Moloney.
“Noting that the average life of these investments is historically 27 months, as our investments become larger and more complex, we expect the investment period to increase to between 36 and 42 months.”
“With the current market instability and uncertainty, we remain very confident in LCM’s growth prospects.”
