Manolete Partners flags stronger second-half performance, shares slide

(Sharecast News) - Manolete Partners said on Friday that it expected full-year realised revenue to be in line with expectations after a stronger second-half performance, with the insolvency claims financing specialist pointing to growth in its forward book and higher-value case completions.

The AIM-traded company said realised revenue for the year ended 31 March was expected to be about £28.0m, down from £29.5m a year earlier, reflecting an increase in higher-value, higher-margin case completions during the second half.

Gross cash receipts rose to £26.6m from £25.6m, while net debt increased to £11.5m from £11.1m.

Free cash outflow was £0.2m, compared with an inflow of £0.5m in the prior year.

Manolete said the stronger second-half trading performance had allowed it to continue investing in new cases and helped offset one-off adjusting items and the non-payment by a small number of large debtors, first noted in its statement of 16 September 2025.

Two of those payments remained delayed, with the company's net exposure to the debtors at about £4.7m.

The board said it remained confident that the full amount would be received in due course.

However, Manolete said it had not yet concluded its bad debt review with its auditors and, if there was no change in circumstances before the audit was completed, it would consider a provision against the debtors likely to be in the region of £1.5m to £2.0m.

The company said it expected adjusted realised profit before tax of £1.9m, up from £0.6m, before any adjustment for those debtors.

Manolete said it signed £32m of new cases in the year, up 23% from £26m, after hiring three people into its legal team and introducing new business development initiatives to support its nationwide referral network.

The firm said new case signings were expected to increase further during the 2027 financial year as the enlarged team continued to drive higher volumes and values.

It also said HSBC had waived a requirement under its loan facility for former chief executive Steven Cooklin to maintain a minimum shareholding in the company.

Manolete refreshed its leadership team during the year, with Mena Halton appointed chief executive in August and Will Sawyer appointed chief financial officer in December.

Marcia Shekerdemian KC joined the board as a non-executive director in March, replacing Stephen Baister, who stepped down from the board but was continuing to provide consultancy services to the company.

The forward book at 31 March stood at £67m, up £18m, or 37%, from £49m a year earlier, driven by investment in the legal team and business development initiatives.

Large cases with forecast revenue of more than £0.5m accounted for £32m of the forward book, compared with £21m at the prior year end.

Manolete said the growth in the forward book and an improving insolvency market backdrop gave it confidence that realised revenue and realised profit before tax would increase in the 2027 financial year.

"We performed well in the second half, with an increase in the number of higher value case completions driving improved trading performance, as we forecast at the half year," said chief executive Mena Halton.

"At the same time, we continued to strengthen our team and new business development function to support our future growth.

"Our forward book has increased significantly in value and we are confident of continuing to build on our market leadership position as UK insolvencies persist at elevated levels."

At 1332 BST, shares in Manolete Partners were down 14.68% at 52.66p.

Reporting by Josh White for Sharecast.com.

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