Manolete shares fall as revenue shift seen in second half

Manolete Partners PLC on Tuesday said it has made progress in onboarding new insolvency litigation cases but warned that revenues will be ‘significantly’ weighted to the second half of its financial year.

Shares in Manolete Partners dropped 17% to 95.00 pence in London on Tuesday afternoon.

The London-based insolvency litigation financing firm said ahead of its annual general statement that it added 114 new cases in the five months to August 31, generating unaudited unrealised revenue of £4.2 million.

This compared with 87 new cases and £3.1 million in unrealised revenue during the same period last year.

The company also confirmed it has settled one of its truck cartel cases, providing a £3.2 million cash injection that was largely used to reduce debt. However, Manolete noted that fewer large cases were resolved during the first half than in the prior year, with just four cases above £250,000 settled versus ten a year earlier.

This has resulted in lower average realised revenue per completed case, excluding the cartel settlement.

The company acknowledged that activity levels are uneven through the year and said a number of higher-value completions are expected in the coming months. It added that the pipeline of potential new case signings remains strong, and the board remains confident in delivering its full-year outlook.

Still, realised revenues are expected to be ‘significantly weighted’ to the second half of the financial year, it cautioned.

Manolete said its debt facility remains drawn to £12.5 million after delays in payment from a small number of large debtors combined with lower realised revenue.

Chief Executive Mena Halton said the company remained ‘satisfied with the volume and value of new cases’ and continues to see strong opportunities in the market.

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