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(Sharecast News) - Manolete Partners reported record operational performance for the year ended 31 March on Tuesday, with revenue and earnings ahead of expectations and strong cash generation supporting new investments.
The AIM-traded insolvency litigation finance specialist saw gains across all key metrics, driven by heightened activity in the UK insolvency market.
It said it completed 272 cases during the year, an 8% increase on the prior year, and received 896 new case referrals, up 23%.
New case investments totalled 282, marginally above the previous year's record.
Realised revenue rose 22% to 29.5m, contributing to an estimated total revenue of 30.8m, up 17% year-on-year and ahead of market forecasts.
EBIT rose 28% to 3.2m, while pre-tax profit increased 60% to 1.6m.
Realised EBIT, excluding unrealised profits, came in at 2m.
Net cash income from completed cases was 13.3m, up from 10.8m, with a surplus of 2m after overheads and investments. Gross cash recoveries rose 45% to 25.6m, with income spread across 373 cases.
Manolete said it reduced its net debt to 11.1m from 12.3m, and recently secured a 17.5m revolving credit facility with HSBC to support growth.
The company said it ended the year with 438 live cases and a net book value of 41.8m.
With insolvency levels still elevated relative to historical norms and broader economic headwinds persisting, the board said it expected further growth and would expand its in-house legal team to support anticipated demand.
At 1451 BST, shares in Manolete Partners were up 17.28% at 95p.
Reporting by Josh White for Sharecast.com.
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