Juridica (JIL) invests in civil litigation cases in the US, supplying finance for plaintiffs with a strong case but insufficient funds to proceed - inevitably, then, its cash flow is lumpy because it's impossible to predict how long a case might last. However, 2012 proved to a bumper year for successful resolutions and gross cash profits from case activity jumped nearly threefold to $38.1m (£25.3m). Over 80 per cent of this was paid out in dividends - hence the tasty yield.
Eight cases were successfully brought to a conclusion - delivering gross proceeds of $40.1m on an investment total of $24.4m- while an additional $5.6m was invested in four existing cases during the year. There are 21 cases remaining in the portfolio and these are fairly evenly divided between antitrust, commercial and patents and represent a total commitment of $148.9m. While each case delivers a different return, the internal rate of return on completed investments currently stands at just under 82 per cent.
Moreover, Juridica expects to see significant trial activity in the current year, based on confirmed trial dates and expected final decisions following trial or arbitration. The group is also well placed to make further investments, with no debt and a hefty cash balance.
| JURIDICA (JIL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 92p | MARKET VALUE: | £96m | |
| TOUCH: | 92-93p | 12-MONTH HIGH: | 105p | LOW: 74p |
| DIVIDEND YIELD: | 14.1%* | PE RATIO: | 4 | |
| DISCOUNT NAV: | 37% | NET CASH: | $43m | |
| Year to 31 Dec | Net asset value (¢) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 190 | 2.44 | 3.06 | 6.7 |
| 2009 | 195 | 16.5 | 16.7 | nil |
| 2010 | 186 | 4.66 | -7.10 | nil |
| 2011 | 218 | 7.19 | 31.4 | nil |
| 2012 | 220 | 12.5 | 35.9 | 13.0* |
| % change | +1 | +73 | +14 | +186 |
Ex-div: - Payment: - *Paid on 4 Jan 2013 and excludes a special dividend of 7p paid in Feb 2012 £1=$1.51 | ||||
