Juridica's (JIL) results for last year are as shrouded in complexity as the company's core business of investing in civil litigation. Headline losses reflected $5.9m (£4m) of management fees made to its former investment manager, JCML, as well as performance fees of $14.5m on realised gains of $28.8m from five successful settlements. There was also a $7.6m unrealised loss from a valuation write-down on the group's investment portfolio, while operating expenses grew by $2m.
But the underlying picture is a lot brighter. Net cash proceeds virtually doubled to $74m, and more settlements in civil cases are expected over the next two years. Juridica has also continued to make new investments and top-up investments on existing cases.
Additionally, Juridica has a 36 per cent stake in JCML, and is therefore expected to be paid $4.7m in dividends out of the $14.5m of performance fees attributable to the manager. The new investment manager - JAML - will be entitled to a performance fee of 20 per cent of the annualised increase in the adjusted net asset value over and above an agreed hurdle rate. No investments attributable to JAML achieved this last year.
| JURIDICA (JIL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 116p | MARKET VALUE: | £128m | |
| TOUCH: | 115-117p | 12-MONTH HIGH: | 150p | LOW: 113p |
| DIVIDEND YIELD: | 17.2% | PE RATIO: | na | |
| DISCOUNT TO NAV: | 30% | NET CASH: | $28m | |
| Year to 31 Dec | Net asset value (¢) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 186 | 4.7 | -7.1 | nil |
| 2011 | 218 | 7.2 | 31.4 | nil |
| 2012 | 220 | 12.5 | 35.9 | 13* |
| 2013 | 202 | 5.1 | 4.9 | 14 |
| 2014 | 166 | -5.0 | -4.5 | 20** |
| % change | -18 | - | - | +43 |
Ex-div:- Payment:- £=$1.48 *Excludes special dividend of 7p **Paid on 14 January | ||||
