Litigation Capital Management Ltd Update following Supreme Court ruling (3389H)
27 Luglio 2023 - 8:00AM
UK Regulatory
TIDMLIT
RNS Number : 3389H
Litigation Capital Management Ltd
27 July 2023
27 July 2023
Litigation Capital Management Limited
("LCM" or the "Company")
Update following Supreme Court ruling
Litigation Capital Management Limited (AIM:LIT), a leading
alternative asset manager specialising in disputes financing
solutions internationally, provides clarity following yesterday's
UK Supreme Court Ruling in relation to PACCAR Inc & Ors v
Competition Appeal Tribunal & Ors, Case ID: 2021/0078.
The decision will have very limited or no impact on LCM's
portfolios of dispute investments in terms of future value. The
Company had no involvement or funding obligation in relation to the
matter referred to.
As a management team, fully endorsed by the Board, we
continually focus on portfolio diversification. The Company
believes that this decision will have a potential positive impact
on our future market share, given the lack of diversity in a number
of our key competitors.
The decision has the potential to impact litigation funding
arrangements entered into within the United Kingdom only to the
extent that the funders interest or return is solely calculated as
a percentage of the Courts award in favour of the funded party.
As investors are aware, LCM structures its funding contracts so
that its return is calculated as a rising multiple of invested
capital over time. This has been a deliberate decision and those
arrangements are unaffected by today's judgement. Therefore, LCM's
existing investments and its business model moving forward is not
adversely affected by the decision. This has been a focus of
management discussions for an extended time and this ruling
underlines the importance of this planning. The decision neither
came as a surprise nor does it pose a risk to LCM's current
investments or its business model. As stated above, we welcome this
as a potential positive differentiator.
We have emphasised to investors for many years that we actively
manage the construction of our portfolios of dispute investments
across industry sector, dispute type, geography and jurisdiction.
We also ensure that our portfolios of dispute investments is not
adversely effected by concentration risk through size and capital
commitment. Such discipline and diligence ensures that neither our
existing investments nor our business model is at risk as a
consequence of a single decision of a Court in a specific
jurisdiction.
Patrick Moloney, Chief Executive Officer, commented: "Management
and the Board continually address developments in the market which
might pose a risk to the business and identify and implement any
mitigation required to ensure we are well positioned as the market
develops and matures.
"We were fully across the risks posed by the pending decision
and are confident it will not adversely impact the returns across
our portfolios of investments or our business model in the United
Kingdom. As per our latest RNS announcements, our underlying
investments have performed strongly over the past 12 months, and
the pivot to a funds management business model is already showing
the benefits of leveraged returns.
"As the CEO, I am looking forward to discussing our performance
in detail when we release our full year results."
Enquiries
Litigation Capital Management c/o Tavistock PR
Patrick Moloney, Chief Executive
Officer
Canaccord (Nomad and Joint Tel: 020 7523 8000
Broker)
Bobbie Hilliam
Investec Bank plc (Joint Tel: 020 7597 5970
Broker)
David Anderson
Tavistock PR Tel: 020 7920 3150
Simon Hudson / Tim Pearson lcm@tavistock.co.uk
Katie Hopkins
NOTES TO EDITORS
Litigation Capital Management (LCM) is an alternative asset
manager specialising in disputes financing solutions
internationally, which operates two business models. The first is
direct investments made from LCM's permanent balance sheet capital
and the second is third party fund management. Under those two
business models, LCM currently pursues three investment strategies:
Single-case funding, Portfolio funding and Acquisitions of claims.
LCM generates its revenue from both its direct investments and also
performance fees through asset management.
LCM has an unparalleled track record driven by disciplined
project selection and robust risk management.
Currently headquartered in Sydney, with offices in London,
Singapore, Brisbane and Melbourne, LCM listed on AIM in December
2018, trading under the ticker LIT.
www.lcmfinance.com
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