Manolete Partn. Share News (MANO)

(Sharecast News) - Manolete Partners reported record operational performance for the year ended 31 March on Tuesday, with revenue and earnings ahead of expectations and strong cash generation supporting new investments.

The AIM-traded insolvency litigation finance specialist saw gains across all key metrics, driven by heightened activity in the UK insolvency market.

It said it completed 272 cases during the year, an 8% increase on the prior year, and received 896 new case referrals, up 23%.

New case investments totalled 282, marginally above the previous year's record.

Realised revenue rose 22% to £29.5m, contributing to an estimated total revenue of £30.8m, up 17% year-on-year and ahead of market forecasts.

EBIT rose 28% to £3.2m, while pre-tax profit increased 60% to £1.6m.

Realised EBIT, excluding unrealised profits, came in at £2m.

Net cash income from completed cases was £13.3m, up from £10.8m, with a surplus of £2m after overheads and investments. Gross cash recoveries rose 45% to £25.6m, with income spread across 373 cases.

Manolete said it reduced its net debt to £11.1m from £12.3m, and recently secured a £17.5m revolving credit facility with HSBC to support growth.

The company said it ended the year with 438 live cases and a net book value of £41.8m.

With insolvency levels still elevated relative to historical norms and broader economic headwinds persisting, the board said it expected further growth and would expand its in-house legal team to support anticipated demand.

At 1451 BST, shares in Manolete Partners were up 17.28% at 95p.

Reporting by Josh White for Sharecast.com.