Juridica (JIL) operates in the US, is registered in Guernsey and trades on London’s Alternative Investment Market. The business model is to provide funding for clients to pursue civil corporate litigation where the plaintiff has a strong case, but lacks the will or finances to proceed.
Current-year settlements at the interim stage generated gross proceeds of $85m (£52m). This equates to net proceeds of $53.5m which will be paid to the company at the end of December. Subject to these payments being made, Juridica anticipates paying a dividend of 20p a share some time in the new year. That’s up from 14p paid the previous year (there are no interim payments). The good news for investors is that this works out at a yield of 14.5 per cent, based on the current share price.
Revenue tends to be a little lumpy, because it’s not easy to predict when a case will be concluded. But Juridica reckons there is a favourable pipeline that will generate further income over the next 12 to 18 months. This is based on confirmed trial dates and expected final decisions following trial or arbitration.
Analysts at Peel Hunt are forecasting adjusted pre-tax profits for the full year of $30m and EPS of 27.1¢ (from $5.1m and 4.9¢ in 2013).
JURIDICA INVESTMENTS (JIL) | ||||
---|---|---|---|---|
ORD PRICE: | 138p | MARKET VALUE: | £153m | |
TOUCH: | 136-139p | 12-MONTH HIGH: | 143p | LOW: 113p |
DIVIDEND YIELD: | 10.1% | PE RATIO: | 13 | |
PREMIUM TO NAV: | 7% | NET CASH: | $21.9m |
Half-year to 30 Jun | Net asset value (¢) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
---|---|---|---|---|
2013 | 217 | -3.0 | -2.86 | nil |
2014 | 211 | 10.3 | 9.35 | nil |
% change | -3 | - | - | - |
Ex-div:- Payment:- £1=$1.63 |