Manolete Partners (AIM:MANO ) has delivered “another set of strong results” showing double-digit growth in its final results for the year ended 31 March 2020, with the Board doubling its final dividend to 3.0p per share, from 1.49p in FY2019.

The group saw double digit growth both in revenue which had increased by 36% to £18.7m (FY19: £13.8m) and EBIT pre-exceptionals which increased by 36% to £9.8m (FY19: £7.2m).

The litigation financing group reported gross profit to be up 43% to £14.4m (FY19: £10.1m) while pre-tax profits increased by 61% to £9.5m from £5.9m in FY2019.

Manolete said it has entered the financial year with £8.4m cash and borrowings of £7.5m as at 31 March 2020 and £12m of borrowings from its Revolving Credit Facility with HSBC.

Chief Exeuctive, Steven Cooklin, said that despite the large expansion of the infrastructure overhead required for the rapid expansion of the business in FY20, company net cash receipts from completed cases had exceed all overhead costs.

Manolete attributes its growth for the period to its regional network of in-house lawyers, the successful deployment of funds raised through its HSBC credit facility and its recent IPO.

Shares in Manolete Partners opened flat at 510p on Friday morning.

 

Operationally, the group has seen ‘excellent growth’ after witnessing a 139% increase in new core investments in UK insolvency cases from 59 cases in FY2019 to 141 in FY2020.

“New case enquiries are also at all-time record levels, running at around double the rate we had this time last year,” said Cooklin, adding that new cases were likely to further increase.

The group said it is now running a record 201 live cases and foresees no need for further material increase in overhead costs, making its outlook for cash generation “very positive.”

Despite the effects of COVID-19, the group said activity levels in April, May and June 2020 have remained strong with new case referrals of 186 compared to last year's total of 98.

Manolete said it remains confident that its portfolio of cases “will provide attractive returns for shareholders” and that overall, its business “is very well-positioned in the insolvency litigation financing market for long-term profitable growth.”

"With the widely reported economic disruption likely to ensue, we expect new case enquiries to increase over the foreseeable future and we will continue working to deliver outstanding returns to both insolvent estates and investors,” added Cooklin.

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