(Alliance News) - Litigation Capital Management Ltd on Tuesday said that it swung to profit in the first half of financial 2024 and expressed confidence that the current economic climate offers significant opportunities for growth.
Litigation Capital is a Sydney-based asset manager and provider of dispute financing.
In the six months to December 31, Litigation Capital's pretax profit was AUD8.9 million, about GBP4.6 million, swung from a loss of AUD3.8 million a year prior.
Total income from litigation assets in the period was AUD21.9 million, more than doubled from AUD10.1 million.
Basic earnings per share were 6.84 cents, compared to a loss of 2.13 cents a year before.
As at December 31, Litigation Capital's assets under administration were AUD561 million, up 16% from AUD484 million in June.
Looking ahead, Litigation Capital said that it is "well positioned to take advantage of the growing demands for disputes capital", with economic uncertainty and increasing insolvencies driving an increased demand for its services.
Chief Executive Officer Patrick Moloney said: "At a time when demand for dispute finance is increasing, LCM is extremely well placed to take advantage of this opportunity. This set of results demonstrates that LCM has the knowledge and expertise to make sound investment decisions and deliver for shareholders and fund investors alike."
Shares in the company were down 3.5% at 95.52 pence each in London on Tuesday.
By Hugh Cameron, Alliance News reporter
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Litigation Cap. (LIT)