Manolete Partners (MANO) H2 2025 earnings summary

Executive summary

• Operates in litigation funding, purchasing insolvency claims to gain control and accelerate settlements, with a 16-year track record, over 1,600 UK insolvency claims invested in, and GBP 166 million in settlements.

• Achieved record case completions in FY25, with 291 cases completed and 284 new cases signed, reflecting strong operational momentum and market demand.

• Maintains a dominant market share (67% of litigation finance segment) and nationwide coverage, supported by a highly experienced in-house legal team.

• Demonstrated robust cash generation and high returns, with a 2.1x money multiple, 113% ROI, and 130% IRR.

• Continued strategic focus on UK insolvency claims, with selective opportunistic investments in similar jurisdictions.

Financial highlights

• Total revenue rose 16% year-over-year to GBP 30.5 million, with realized revenue up 22% and gross profit up 3% to GBP 10.4 million.

• EBIT increased 19% to GBP 3 million, and profit before tax reached GBP 1.4 million.

• Net cash from completed cases was GBP 15.2 million, enabling a reduction in net debt from GBP 12.3 million to GBP 11.1 million.

• Gross margin declined to 12.5% due to higher legal spend and a greater share to insolvency practitioners, reflecting smaller average case sizes.

• Cash balance at year-end was GBP 0.7 million, down 52% year-over-year.

Outlook and guidance

• Strong start to the new financial year, with 56 new investments in the first quarter (up 27% year-over-year), including more large cases over GBP 1 million.

• Anticipates average case values to trend back to pre-COVID levels (GBP 200,000), which would significantly boost profits without increasing costs.

• New senior legal hires planned to support continued growth and nationwide coverage.

• Market drivers remain robust due to high interest rates, cost of living pressures, and increased insolvencies.

• Expects gross margin improvement as larger cases return to pre-pandemic levels.