Manolete Partners (MANO) H2 2025 earnings summary

Executive summary

• Operates in litigation funding, specializing in purchasing insolvency claims, providing full control over litigation and settlements.

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

• Maintained dominant market position with a 67% share in the UK third-party funding segment for insolvency litigation.

• Demonstrated robust cash generation and high returns, with a 2.1x money multiple, 113% ROI, and 130% IRR over a 16-year track record.

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

Financial highlights

• Total revenue up 16% year-over-year to GBP 30.5 million, with realized revenue up 22% to GBP 29.5 million.

• Gross profit increased 3% to GBP 10.4 million; EBIT up 19% to GBP 3 million; profit before tax was GBP 1.3 million, up from GBP 1 million.

• Net cash from completed cases reached GBP 15.2 million, enabling reduction of net debt from GBP 12.3 million to GBP 11.1 million.

• Overheads remained stable at GBP 7.5 million, reflecting strong cost control.

• Gross margin declined to 34% from 39% due to higher legal spend and a greater proportion of smaller cases.

Outlook and guidance

• Strong start to the new financial year with 56 new investments in the first quarter, up 27% year-over-year.

• Larger cases are beginning to return, expected to drive average case size back toward pre-COVID levels (GBP 200,000) over the next 1-4 years.

• Operational leverage expected to improve margins as case values rise without significant cost increases.

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