Litigation Capital announces settlement of direct investment

Litigation Capital Management announced the settlement of an investment within its portfolio of direct investments on Thursday.

The AIM-traded firm said the investment in question pertained to an arbitration case, and resulted in a successful award for the company.

On 23 February, the company announced a positive development regarding a partial award in one of its 100% direct balance sheet matters.

Subsequently, a settlement was reached between the parties involved, following an award on liability and costs that was granted in favour of the funded party.

The arbitration case was heard by a tribunal appointed under the International Chamber of Commerce (ICC) arbitration rules.

Litigation Capital said the invested capital in the case totalled AUD 2.9m, while the investment return, or gross profit, was AUD 8.6m.

The total return was AUD 11.5m, with its return on invested capital being 293%.

“We are pleased with the positive resolution of this investment and more generally the momentum in the progress of our portfolio in the second half of our financial year,” said chief executive officer Patrick Moloney.

“This is of particular significance, given our first half results which were impacted by the timing, and consequently recognition of resolutions.”

Moloney said the company believed the recent resolutions demonstrated the company’s expertise and skill in selecting and underwriting investments.

“Additionally, they reinforce the value and scale our funds management business adds to the group, creating significant value for our shareholders and investors.”

At 1428 BST, shares in Litigation Capital Management were up 3.37% at 87.87p.

Reporting by Josh White for Sharecast.com.