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Results Presentation Year Ended 31 March 2025 www.manolete-partners.com
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Presenters Results Presentation for the Year Ended 31 March 2025 2 Steven Cooklin ACA ACSI CF Chief Executive Officer Steven founded Manolete in 2008 and is Chief Executive. Steven is a Chartered Accountant having qualified at Coopers & Lybrand (now PwC) in 1991. Steven has over 20 years’ experience in corporate finance with National Westminster Bank, Calder Corporate Advisory Ltd and Hill Samuel Investment Bank and is a former director of HSBC Investment Bank (Corporate Finance Division). Steven is an Associate Member of The Association of Business Recovery Professionals. Steven has also been invited to share his views on the insolvency sector by the Bank of England Decision Maker Panel. Rachel Lindley-Janes Interim Head of Finance Rachel joined Manolete in January 2022 as Associate Director – Finance. She began her career in the Grant Thornton audit team and qualified with the Association of Chartered Certified Accountants (ACCA) in 2015. Rachel has since held positions for several PLC and private businesses working across sectors including FMCG, Waste and Marketing. In April 2025, she was appointed interim Head of Finance.
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Agenda Results Presentation for the Year Ended 31 March 2025 3 Company Overview FY 2025 Financial Results Current Trading, Strategy and Investment Case Q&A
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Unique business model. • Purchase claims from insolvent UK companies - taking assignments via the Liquidator or Administrator of insolvent companies. • Liquidators, Administrators or Trustees in Bankruptcy (together “Office Holders”) are licensed, and highly regulated, Insolvency Practitioners (“IPs”). • Purchasing the claims gives Manolete full control over: conduct, settlement, costs and management of the claims. Insolvency is the only area of law where this is permissible. Track record • Invested in over 1,600 UK insolvency claims, completing over 1,200 of those, generating case settlements of over £166m, over a 16-year trading history. Consistently high returns • IRRs of 130%, ROIs of 113%, and 2.1x MoM over a 16-year trading history. The UK’s leading insolvency litigation financing company Results Presentation for the Year Ended 31 March 2025 4
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UK Insolvency Service Report for April 2025 stated: “Company insolvencies over the past 12 months have been slightly lower than in 2023, which saw a 30-year high annual number, but have remained high relative to historical levels.” CVLs have always been the most common type of insolvency process for cases that are referred to Manolete. Insolvencies were artificially sharply suppressed during the Covid period when the UK Government passed emergency legislation (“Corporate Insolvency and Governance Act 2020”) to protect companies from creditor action from June 2020 to April 2022. Since UK insolvency laws resumed to normal operation in April 2022, monthly UK insolvency levels have consistently exceeded pre-pandemic levels . Driven principally by record levels of CVLs. CVLs tend to be for SMEs rather than larger companies – this generated high case volumes but lower average case values. The UK Insolvency Market Results Presentation for the Year Ended 31 March 2025 5 Source: UK Insolvency Service: Company insolvency statistics May 2025
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Administrations – more commonly the insolvency path for larger UK company insolvencies – took longer to return to pre-pandemic levels of activity. After the UK Government withdrew its widescale financial support for businesses in April 2022, the first wave of insolvencies predominantly featured the smaller and weaker “zombie” companies. Larger UK companies had stronger balance sheets and broader access to capital, which acted as an initial buffer to higher inflation and interest rates . UK Administrations Results Presentation for the Year Ended 31 March 2025 6 Source: UK Insolvency Service: Company insolvency statistics May 2025 Pre-Covid Level
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Manolete – the dominant TPF Five-time award winner of industry’s TRI award for Litigation Funding The only firm ranked in Band 1 for Insolvency Litigation Funding in the prestigious “Chambers Guide” in every year 2021 – 2025 Third Party Funders (TPF) segment continues to grow share Manolete estimated at 67% share of the TPF segment – the next highest funding company had 5% Results Presentation for the Year Ended 31 March 2025 7 Law Firms acting on “No Win No Fee”/Conditional Fee Arrangements Third Party Funders (Manolete has 67% of this segment)
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Market Positioning Nationwide coverage (Edinburgh to Exeter) Highly experienced in-house legal team which currently comprises 16 top class senior lawyers, experts in insolvency litigation. All recruited from private practice at or around Partner level. A further two joiners will commence before the end of H1 FY26 Mena Halton (Managing Director and Head of Legal) personally ranked by Chambers as a Band 1 Insolvency Lawyer 2022-25 Many of our in-house legal team hold senior positions in R3 (the UK insolvency trade body) and two are part time Deputy District Judges Often on an exclusive basis, Manolete has rolling three-year marketing agreements with the three key regulatory and trade bodies: R3, the Institute of Chartered Accountants (Insolvency Division) and the Insolvency Practitioners Association Results Presentation for the Year Ended 31 March 2025 8 Scotla nd = Manolete regional coverage
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Business Mix The seven typical case types Purchased versus Funded Main creditor: HMRC (i.e. you and me, schools, hospitals etc) As previously guided, the portfolio is now almost entirely comprised of purchased cases FY25 Completed Cases New Investments Purchased 280 96% 281 99% Funded 11 4% 3 1% Total 291 100% 284 100% Results Presentation for the Year Ended 31 March 2025 9 Includes two new Barclays Bounce Back Loan Pilot investments in FY25
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Results Presentation for the Year Ended 31 March 2025 10 Company goes insolvent IP appointed Funding sought Manolete purchases claim • A company declared insolvent by Directors or wound-up by its Creditors • IP duty to seek funding for any claims identified • Manolete rigorous selection process • Decision to take on case assesses (i) probability of completion and (ii) financial viability of defendant (surety of receipt of proceeds / cash collection) • IP appointed to realise the company’s assets with the overriding aim: maximise returns for creditors • IP duty to investigate circumstances leading up to the company’s insolvency Route to Market
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The “Funnel”: the lifecycle of Manolete’s cases Results Presentation for the Year Ended 31 March 2025 12 ACCOUNTING IMPACT No impact on Manolete's financial statements Generates initial “unrealised revenue/unrealised profit” – adjusted monthly (up or down) by in-house legal team as case progresses Reverse out all Unrealised Balances and insert Realised income, costs, debtor and IP creditor and any provision if any perceived collection risk Debtor changed to cash income. IP creditor paid for their share of the net proceeds. Mano retains its cost recovery + its share of the net proceeds 1. New Case Enquiry – excellent leading indicator for the business 2. Offer accepted & signed – 29% of enquiries converted to signed cases (71% of cases rejected) 3. Case legally completed – usually via settlement agreement/rarely a judgment 4. Cash collected – pay IP Estate their share CASE EVENT 1-8 weeks Lifetime av. duration: 12.7 months Avg 12 months post completion TIME
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Key Performance Indicators: (1) New Case Enquiries Results Presentation for the Year Ended 31 March 2025 12
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Key Performance Indicators: (2) New Signed Cases Results Presentation for the Year Ended 31 March 2025 13 Total Signed Cases p.a.: FY19 – FY25 excluding 85 Barclays BBL Pilot Cases The Covid impact The Covid impact
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Key Performance Indicators: (3) Completed Cases Results Presentation for the Year Ended 31 March 2025 14 Note 1: FY21: Two large case completions (£15m – purchased case and £7.5m – funded case); FY23 included a one-off very large settlement of a funded case, which contributed £4.9m to realised revenues in that year. Note the strong resilience of case completions during the challenging Covid period, as highlighted above. The Covid impact
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Important Note on Average Realised Revenue per Completed Case: FY19 – FY25 Results Presentation for the Year Ended 31 March 2025 15 Average realised revenue per completed case (“ARRCC ”) was £101k, 5% higher than £96k for FY24. Excluding the Barclays BBL cases the ARRCC for FY25 was £110k, 7% ahead of £103k for FY24 on the same basis. This is a clearer view of the core Manolete business. The increase in ARRCC would have been materially higher for FY25 but for the inclusion of a particularly large proportion of smaller cases (from the early Covid recovery period) allied with a large number of the Barclays BBL cases (which are maximum £50k claims) resolving in FY25. Although combined with larger cases they delivered a 22% increase in Realised Revenues to £29.5m. Administrations (larger company insolvencies) have been much slower to recover following Covid than Liquidations (smaller companies). Meaningful evidence is starting to emerge pointing to a recovery in Administrations, e.g. this comment by the Insolvency Service in June 2025: “The number of administrations in May 2025 was 28% higher than in April 2025 and 12% higher than in May 2024. In 2024, the number of administrations increased by 2% from 2023 and was slightly higher than annual totals seen between 2015 and 2019. Numbers of administrations have continued to increase since 2022 from an 18-year annual low seen during the COVID-19 pandemic in 2021.” Source: Companies House
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Key Performance Indicators: (4) Gross Cash Receipts from Completed Cases Results Presentation for the Year Ended 31 March 2025 16 Gross Cash Receipts p.a. FY20 – FY25 excluding a large one-off £9.5m case cash received in FY23 Note that cash receipts have grown consistently despite the severe artificial market suppression during the Covid period Gross Cash Receipts p.a. FY20 – FY25 including large one-off £9.5m case cash received in FY23.
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Key Performance Indicators: (4) Net Cash Receipts from Completed Cases – after payment of IP and legal costs Results Presentation for the Year Ended 31 March 2025 17 Net Cash Receipts p.a. FY20 – FY25 excluding large one-off £9.5m case cash received in FY23 Net Cash Receipts p.a. FY20 – FY25 including large one-off £9.5m case cash received in FY23
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Key Performance Indicators: (5) Portfolio Investment Performance – this analysis shows returns on investments made in each FY Results Presentation for the Year Ended 31 March 2025 18 1,217 case completions, representing 75% of lifetime investments now completed £166m total aggregate value of lifetime settlements Only one (small) case from 2020 remain in progress: demonstrating the highly efficient and effective Manolete Model in the world of litigation On the 1,217 completed cases, Manolete has recovered £93m of net retained proceeds (£49m case profits plus £44m costs recovered). Representing a 2.1x Money Multiple IRR: 130% RoI: 113% compares favourably to Private Equity/VC Consistent performance over 16 years and across many hundreds of granular cases Case No. of investments No. completed % completion No outstanding Open case investments Closed case investments Total invested Total recovered Total gain IP share Manolete gain Duration completed cases ROI MoM IRR Vintage No No % total No £'000 £'000 £'000 £'000 £'000 £'000 £'000 Months % % % 2010 3 3 100% 0 0 52 52 28 (24) 10 (35) 7.0m (67%) .3x 0% 2011 0 0 - 0 0 0 0 0 0 0 0 0.0m 0% .0x 0% 2012 8 8 100% 0 0 763 763 2,524 1,761 580 1,181 18.0m 155% 2.5x 258% 2013 10 10 100% 0 0 174 174 780 606 316 290 7.1m 166% 2.7x 281% 2014 42 42 100% 0 0 594 594 3,884 3,290 2,427 863 10.0m 145% 2.5x 455% 2015 39 39 100% 0 0 1,404 1,404 7,029 5,625 3,290 2,335 12.8m 166% 2.7x 502% 2016 36 36 100% 0 0 1,936 1,936 9,393 7,457 4,164 3,293 15.0m 170% 2.7x 180% 2017 31 31 100% 0 0 1,446 1,446 4,469 3,023 1,905 1,118 14.1m 77% 1.8x 462% 2018 29 29 100% 0 0 4,039 4,039 23,717 19,678 12,971 6,707 16.9m 166% 2.7x 73% 2019 59 59 100% 0 0 2,751 2,751 13,567 10,815 7,528 3,287 17.4m 119% 2.2x 88% 2020 141 140 99% 1 61 8,157 8,218 20,455 12,298 7,939 4,358 18.3m 53% 1.5x 57% 2021 198 191 96% 7 557 9,404 9,961 27,349 17,946 10,702 7,243 17.4m 77% 1.8x 73% 2022 159 148 93% 11 701 4,210 4,912 11,603 7,392 4,147 3,245 14.5m 77% 1.8x 116% 2023 263 227 86% 36 1,925 4,653 6,577 17,700 13,047 7,101 5,948 11.9m 128% 2.3x 507% 2024 311 202 65% 109 2,465 3,471 5,936 19,707 16,236 8,873 7,363 10.8m 212% 3.1x 890% 2025 284 52 18% 232 2,929 483 3,412 4,150 3,667 1,793 1,874 5.6m 388% 4.9x 1702% Total (exc. Cartel cases) 1,613 1,217 75.4% 396 8,639 43,536 52,175 166,354 122,817 73,746 49,068 13.8m 113% 2.1x 130% (i) The vintages table excludes 22 cartel cases and is net of deductions for bad debt provisions (excluding ECL provisions). (ii) Ongoing cases includes partial realisations. (iii) The large case completion in FY21 is presented net of discounting.
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Around £50 billion BBLs issued in response to Covid – a significant minority abused the funding. Government has already paid out £10.5 billion for defaulted BBLs under its 100% guarantee to participating financial institutions. Government has identified c. £1.6 billion of the £10.5 billion was “fraudulent”. Barclays approached Manolete in Summer 2022 to run a pilot recovery project based on Manolete’s suggested criteria. As at end of FY25, 111 cases referred to Manolete – 72 completed (with an average duration of around 11 months) generating £1.5m of settlements, of which over £1m has already been collected in cash – by far the most successful pilot recovery project undertaken by any UK financial institution. External legal costs were minimal as Manolete in-house legal team conducted the litigation. Net recoveries were split 50/50 with Barclays. Barclays (the largest distributor of BBLs) were surprised but delighted with the pilot results. Small number of further cases from Barclays now arriving via the Insolvency Service. Immaterial to the Company. On 3rd December 2024, the Government announced the appointment of Tom Hayhoe as Covid Counter-Fraud Commissioner but there has been no further engagement with the Government or Civil Service to report, as yet. Chaired by Baroness Hallett, the UK Covid-19 Inquiry is an ongoing, independent public inquiry into the United Kingdom's response to, and the impact of, the COVID-19 pandemic. Public hearings began in June 2023 and continue into this year. Manolete has clearly proven its effectiveness, but, as we have previously stated, we cannot assume any further involvement until the current Government has thoroughly reviewed the position and its options. The Barclays BBL pilot and the wider BBL potential opportunity Results Presentation for the Year Ended 31 March 2025 19 The Times newspaper: 25 June 2025
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A discrete sub-set of Competition Law cases, where we have purchased all 22 claims from insolvent companies impacted by a price fixing truck cartel 1998- 2011. Record EU fine. Liability established. The question is quantum. Very different to our core UK insolvency claims. This is unlikely to be repeated. January 2023: BT and Royal Mail judgments handed down which support our NBV of £13.2m: 5% overcharge decided. Our retained specialist Competition Law valuations expert, Fideres LLP , derives all valuations on these cases – not Manolete. CAT ordered that DAF pay interim payment on account to Royal Mail 70% of its incurred costs (GBP 9.21m), and to BT 75% of its incurred costs (GBP 4.93m ). Trial window for second wave Sept 2026, if not settled before. Manolete applying for inclusion in this cohort. January 2024, Court of Appeal dismissed DAF’s single head of appeal. Given highly commercially and legally sensitive nature of these cases, no further information can be provided at this stage. £300k increase in carrying cost of the Cartel Cases in FY25, is due solely to the costs incurred on these cases in FY25. Cartel Cases Results Presentation for the Year Ended 31 March 2025 20
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FY25 Financial Results Rachel Lindley-Janes Interim Head of Finance
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Financials - Highlights £3.0m EBIT FY 2024: £2.5m +19% £29.5m Realised revenue FY 2024: £24.2m +22% £30.5m Total revenue FY 2024: £26.3m +16% £10.4m Gross Profit FY 2024: £10.1m +3% 34% Gross Margin FY 2024: 39% -4% £7.5m Overheads FY 2024: £7.6m +0% £15.2m Net cash generated- completed cases FY 2024: £10.8m +41% £0.7m Cash balance FY 2024: £1.4m -52% £11.1m Net debt FY 2024: £12.3m -10% Results Presentation for the Year Ended 31 March 2025 22
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Trading Performance – FY25 Gross total revenue of £30.5m increased by 16% in FY25 a result of a positive contribution from unrealised revenue, as well as continued high levels of realised revenue. Realised revenue of £29.5m (FY24: £24.3m) remained at elevated levels and was generated by 291 case completions in FY25 (FY24: 251). Unrealised revenue was £1.0m (FY24: £2.1m) generated by 284 new cases signed (FY24: 311, including Barclays BBLs) which more than offset any fair value adjustments arising during the year for ongoing cases and transfers to Realised Revenue on the record level of completed cases. Gross margin of 34% compared to 39% FY24, due to an increase in legal spend as well as IP share of completions. The legal spend factor is partly inflation related but also a result of the larger proportion of smaller/medium size cases in the mix of total completions. As larger cases (mainly Administrations) return to their pre-covid norm, we expect the gross margin to revert back towards higher historic levels. Revenue composition FY23 FY24 FY25 Revenue recognition Realised revenue – revenue from completed cases, realised consideration. For purchased cases, full recognition of the settlement is recognised as revenue (including the insolvent estate’s share which is deducted through Cost of sales). Unrealised revenue – (i) movement in fair value of open cases (valuations of new and live cases) AND (ii) movements to Realised revenue; when a case is completed the carrying value is a deduction to unrealised income and the actual settlement value is recorded as realised revenue. Results Presentation for the Year Ended 31 March 2025 23
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Trading Performance – FY25 Overheads of £7.5m FY25 decreased by £181k, therefore a slight decline from the prior year, due to consistent staffing levels during the year and a saving in marketing spend (and related travel costs) following a complete review on which business development activities best benefit the company. These savings were partially offset by an increase in professional expenses due to increased spending on corporate advisory during the year ended 31 March 2025. EBIT of £3.0m (FY24: £2.5m), generated from both robust Realised revenue (actual completions) and a positive contribution from Unrealised revenue EBIT margin FY25 and FY24 consistent at 10%: good cost control on significantly higher revenue and activity levels in FY25, endorsing management’s prior year comments on scalability of the business platform PBT of £1.3m (FY24: £1.0m), net of finance charges of £1.6m (FY24: £1.5m) which has benefited from the business being able to make repayments to the HSBC loan facility despite interest rates being at a higher rate. We note that interest rates are now beginning to fall. Results Presentation for the Year Ended 31 March 2025 24 31 March 31 March 31 March 2023 2024 2025 £'000 £'000 £'000 Realised revenue 26,790 24,183 29,475 Unrealised revenue (6,037) 2,112 1,006 Gross revenue 20,753 26,295 30,481 Cost of sales (17,081) (16,150) (20,050) Gross profit 3,672 10,145 10,431 Gross profit margin 18% 39% 34% Overheads (6,793) (7,644) (7,463) EBIT (3,121) 2,501 2,968 EBIT margin (15)% 10% 10% Net finance charge (832) (1,463) (1,621) Profit before tax (3,953) 1,038 1,347 Taxation 829 (105) (454) Profit after tax (3,124) 933 893
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Balance sheet as at 31 March 2025 Investment in cases (non-current and current) of £41.4m (FY24: £40.2m) comprised 419 live cases as at 31 March 2025 (418 live cases 31 March 2024), a net increase of 1 case. Overall, new case signings remain at elevated levels, FY25 setting a new lifetime record for annual case completions of 291. Trade receivables of £31.6m as at 31 March 2025 (£29.3m March 2024) includes a receivable of £5.9m in relation to a single large case (completed in FY21) which is receivable over a remaining 7-year timeframe. We continue to closely monitor collection of all trade debtors. Cash of £0.7m held as at 31 March 2025. Debt draw down on our HSBC revolving credit facility was £12.5m, representing a repayment in FY25of £1.25m. In March 2025 the Company obtained a new RCF facility with HSBC for £17.5m for 3.25 years, with the option to extend for a further year. £5m of our core £17.5m HSBC facility remains unutilised at 31 March 2025. Results Presentation for the Year Ended 31 March 2025 26 31 March 31 March 31 March 2023 2024 2025 £m £m £m Investment in cases 15.0 11.3 11.3 Trade receivables 12.3 14.2 12.2 Other assets 0.3 0.9 0.3 Non current assets 27.6 26.4 23.8 Investment in cases 21.5 28.9 30.1 Trade receivables 12.1 15.1 19.4 Corporation tax 0.7 - - Cash at bank 0.6 1.4 0.7 Current assets 34.9 45.4 50.2 Current Liabilities (5.5) (9.2) (13.2) Net current assets 29.4 36.2 37.0 Long term loans (10.4) (13.7) (11.8) Non-current trade payables (7.4) (8.4) (7.6) Non-current liabilities (17.8) (22.1) (19.4) Net assets 39.2 40.5 41.4 Share capital 0.2 0.2 0.2 Reserves 39.0 40.3 41.2 Equity 39.2 40.5 41.4
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Direct Cashflow Statement FY25 – Strong cash generation Gross cash receipts of £25.6m FY25 (FY24: £17.7m) were driven by both payment schedules of prior year completions as well as current year case completions. FY23 included £9.5m from a single case which completed in early FY23, if adjusted for FY23 £17.2. No cases of this size were completed in FY25. Net cash generated from completed cases was in excess of payments to IPs, legal costs relating to those cases, net cash inflow from completed cases £15.2m FY24 (FY24: £10.8m), an increase of 41% in FY25. Investment in new cases - we continue to invest in new cases and our existing case portfolio, £6.9m FY25, (FY24: £6.3m) which past experience would indicate will repay at an average money multiple of c.2.1x. Overhead cash expenditure, cash payments stayed inline at £5.8m FY25 (FY24: £5.9m). Repayments of loan facility of £1.3m (Repayments of £1.8m offset by a drawdown of £0.5m), a payment of interest charges of £1.2m and costs associated with the new loan facility resulted in net cash outflow from financing activities of £3.2m. This has allowed the Company to reduce its net debt position form £12.3m at 31 March 2024 to £11.1m at 31 March 2025. Results Presentation for the Year Ended 31 March 2025 27 31st March 2023 31st March 2024 31st March 2025 £'000's £'000's £'000's Operating activities: Gross cash generated from completed cases 26.7 17.7 25.6 Payments to IPs (11.0) (5.1) (7.2) Payment of legal and related costs on complete cases (2.6) (1.8) (3.2) Net cash generated from completed cases 13.1 10.8 15.2 investment in new and ongoing cases (5.8) (6.3) (6.9) Net cash generated from cases 7.3 4.5 8.3 Payments to employees and overhead suppliers (5.1) (5.9) (5.8) Corporation tax (0.3) - - Net cashflows from operating activities 1.9 (1.4) 2.5 Financing activities: Proceeds from borrowings 2.7 3.3 0.5 Repayment of borrowings and interest (5.9) (1.0) (3.0) Loan arrangement fees - - (0.7) Lease repayments (0.1) - - Dividends paid to shareholders (0.2) - - Net cashflows from/ (used in) financing activities (3.5) 2.3 (3.2) Net increase in cash and cash equivalents (1.6) 0.8 (0.7) Opening cash and cash equivalents 2.2 0.6 1.4 Closing cash and cash equivalents 0.6 1.4 0.7
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Ageing of trade receivables – 59% of trade debtors are ‘not due’ Ageing by due date at 31 March 2025 (exc. large case) Ageing by due date, as at 31 March 2025 which takes into account the legally-binding phasing of settlements, 59% of trade receivables (excluding the large case and judgements) are not due and a further 16% are within 6 months overdue. There is a small ‘tail’ of longer overdue balances where in most cases Manolete holds charging orders over property which act as collateral against the amounts owed. Results Presentation for the Year Ended 31 March 2025 28
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Current Trading, Strategy and Investment Case
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Current trading: year to date FY26 A strong start to the new trading year As at 20 June 2025 the Company had already signed 56 new case investments, 27% more than the 44 signed for the whole of the first quarter of the last financial year. During the same period, the Company has completed 46 cases. Therefore, the number of live cases in progress as at 20 June 2025 was 429. For Q1 FY26 to date, Manolete has purchased 5 cases with a headline value in excess of £1m, compared to 3 £1m+ headline claim cases for the whole of Q1 FY25. New case referrals remain buoyant, at close to record levels. A new senior level lawyer joined the in-house Legal team to cover the East Midlands. Two further new senior in-house lawyers are due to join the in-house team: one in July and one before the end of September. Results Presentation for the Year Ended 31 March 2025 30
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Strategy Results Presentation for the Year Ended 31 March 2025 31 The overall strategic focus of Manolete is unchanged: UK insolvency claims, plus rare opportunistic review and investment in insolvency claims where insolvency laws are very similar to the UK e.g. the £9.5m settlement case in FY23 was a Guernsey insolvency claim. Manolete seeks to maximise the number of its new case investments but also looks to balance its investment portfolio across a range of small (headline claim values up to £100k), medium (£100k - £1m) and large (£1m+) case values. Since the ending of the Covid-related insolvency restrictions imposed by the UK Government (June 2020 to April 2022), the UK insolvency market and Manolete’s investment portfolio have seen a gradual return of the larger cases (typically Administrations).
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Investment Case UK’s leading insolvency litigation financing company. Unlike our listed peers – Manolete buys rather than funds claims. It is only within the insolvency sector that a third party is allowed to purchase another entity’s claims (established by the Insolvency Act 1986 and expanded by virtue of the Small Business Enterprise and Employment Act 2015) Significant expertise and nationwide coverage (team of highly experienced lawyers) Significant market drivers and strong economic tailwinds – record number of UK insolvencies, and Manolete is the dominant third- party funding company in the market and selective in cases taken on Short duration to case completion (13.8 months) Strong and growing demonstrative cash generation track record High operational leverage – a major opportunity to drive profitability as average case values continue to increase Demonstrated returns ROI 113%, IRR 130%, MoM 2.1x Results Presentation for the Year Ended 31 March 2025 32
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Q&A
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Appendix I Our Process
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Manolete’s Core Insolvency Litigation Financing Business 1. Case onboarding and assessment • Usually, this process takes 7-10 days • Larger/more complex cases can take 4-8 weeks 1. Case opportunities submitted to Manolete: 60-80 new enquiries per month (i.e. every business day 2-3 new case investment opportunities arrive from our proprietary referral network of UK IPs and solicitors) 2. Manolete Net Worth Team assess financial viability of defendant(s) 3. If Net Worth passed: legal team detailed merits review 4. Case Review submitted to Investment Committee 5. If approved – offer to IP 6. Case Purchase completed Results Presentation for the Year Ended 31 March 2025 35
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2. As encouraged by the Courts, we repeatedly offer ADR 1. Usually we retain the IP’s solicitors and then issue a re-vamped Letter Before Action Manolete’s Core Insolvency Litigation Financing Business 2. Case Execution • Over 900 cases completed. From purchase to legally binding settled: duration varies from 1 week to several years • Lifetime average duration for Manolete is: 12.7 months 3. Majority of defendants settle (to avoid needless cost escalation on both sides) pre-issue 4. If not, issuing the claim will reinforce our full commitment to the case and that can elicit agreement to ADR 6. Very rarely trial: 3% of completed cases (29 cases) with 79% win rate at trial 5. Majority of larger/insured cases tend to settle at this stage Results Presentation for the Year Ended 31 March 2025 36
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Manolete’s Core Insolvency Litigation Financing Business 3. Enforcement • 97% of successfully completed cases are by way of a negotiated and signed settlement agreement • Very few bad debts from settlement agreements – much greater care and conservatism required for enforcing (contested) judgments 2. Instead, the usual outcome is a commercial settlement between Manolete and the defendant director(s) 1. Vast majority of cases settled long before the expense and risk of a trial 3. Unlike a contested Court Judgment – a settlement agreement has been consented to by us and the defendant(s) 5. Property restrictions in place until full debt paid 6. Acceleration clause if any payment missed 4. We always aim for significant immediate payment and remainder in <1 year Results Presentation for the Year Ended 31 March 2025 37
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Appendix II Revenue Recognition
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Appendix – revenue recognition 1. Sign a case and monthly monitoring On signing a case, we recognise the “value” (expected realistic settlement figure less expected legal costs including initial payment, less IP share) of the case to Manolete in Investments (balance sheet), credit to unrealised revenue in the P&L. These figures are provided by the lead lawyer on the case with overview by the management team. Dr Investments (Bal sheet) X Cr Unrealised revenue (P&L) X Each month both the expected settlement value and the expected legal costs are re-evaluated in light with the progress of the case by the lead lawyer . Any changes to the value of the case are posted as above, hence if the case if progressing well an increase to the expected settlement would result in a further posting of (this iteration could be repeated several times over the duration of a case): Dr Investment (Bal sheet) X Cr unrealised revenue X We also recognise legal costs as incurred and hold as a prepayment on the balance sheet: Dr Prepayment – legal costs (Bal sheet) X Cr Cash (Bal sheet) X Results Presentation for the Year Ended 31 March 2025 39
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Appendix – revenue recognition 2. Completion of a case On completion of a case, the estimated Investment value is removed from the balance sheet and from Unrealised revenue, and replaced with the actual completion value to Realised revenue, with the debit either to cash (if collected) or more likely to debtors for collection. Remove estimated value: Dr Unrealised revenue (P&L) X Cr Investments (Bal sheet) X Insert actual completion value and recognise costs in P&L: Dr Debtors (Bal Sheet) X Cr Realised revenue X Dr Legal costs (P&L) X Cr Prepayments (B/S) X Hence at the point of completion, we have the actual realised revenue (settlement amount) and actual legal costs incurred recorded. Results Presentation for the Year Ended 31 March 2025 40
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40 IMPORTANT NOTICE This Presentation is exempt from the general restriction set out in section 21 of the Financial Services and Markets Act 2000 on the communication of invitations or inducements to engage in investment activity on the grounds that the communication is made only to persons who fall within the exemptions contained in Articles 19 and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (being persons who are authorised or exempt persons within the meaning of the Financial Services and Markets Act 2000 and certain other persons having professional experience relating to investments, high net worth companies and persons to whom distribution may otherwise lawfully be made (an “Exempt Person”)). Any investment, investment activity or controlled activity to which this Presentation relates is available only to Exempt Persons and will be engaged in only with Exempt Persons. 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