A return to insolvency business-as-usual has helped litigation funder Manolete bounce back into profit. Results announced today, for the year to 31 March, show pre-tax profits of £2.5m, compared with a loss of £3.1m in 2022. The return to profit was despite a 34% slide in cash from completed cases, which the company said was caused by one exceptional case the previous year. 

London-based Manolete, founded in 2009, describes itself as a specialist in funding claims brought by insolvency practitioners. Its business was hit by Covid-era emergency legislation to protect businesses, which ended in April 2022. Since then, however, the number of UK insolvencies has hit record levels. 

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Litigation funder still upbeat despite huge annual loss 

According to today’s results, the company made a record number of new case investments last year, up 18% from the previous year. 

Steven Cooklin, chief executive, said the results show that Manolete has recovered from the Covid era. 'The company has returned to profitability and has continued its track record of consistent operational cash generation,' he said. 'That has been driven by a record number of 251 case completions in FY24.'

Cooklin said results for the current financial year 'clearly show that this positive momentum has continued: year to date, new case enquiries are running 22% ahead of FY24 and our in-house legal team has already completed 116 cases with an aggregate value of £11.8m'. Manolete is 'exceptionally well placed to take advantage of challenging, multiple, macro-economic factors’ driving corporate insolvencies,' Cooklin said.

Shares in Manolete Partners plc fell 8.97% to 132p on the announcement.