Litigation Capital Management Limited
Litigation Capital Management Limited (LCM) is a global provider of legal finance, operating two business models: direct investments funded from its own permanent balance sheet capital, and fund/asset management of third-party capital (LCM Global Alternative Returns Funds I, II and III). It pursues single-case funding, corporate portfolio funding and acquisitions of claims, earning returns from its own invested capital and performance fees from fund management. FY26 was a year of severe losses and the Group has agreed a long-term amendment with its lender, Northleaf, to move the existing case portfolio into an orderly run-off with no new investments.
FY2026 in sixty seconds
year to 30 Jun 2026 · approved 30 Sept 2026 · 69 pages · Company website
Litigation Capital Management funds other people's lawsuits in return for a share of any winnings. Its income comes from gains or losses on cases rather than sales. In the year to 30 June 2026 its loss after tax widened to AUD 165.7m, from AUD 72.9m.
The main reason was lost cases: seven of the eight that ended in the year failed. One-off costs added to the loss, including A$20.4 million set aside to repay fees earned earlier from one of its funds and A$12.9 million of uninsured legal costs from a lost Queensland class action.
Cash fell to AUD 10.4m from AUD 18.4m. No dividend was paid, against 1.25 cents per share a year earlier. After the year end, lender Northleaf raised its loan facility to US$125m; the company will make no new investments, running its cases to conclusion to repay the loan before shareholders can receive anything. Directors and auditor warn of a material uncertainty over whether the company can keep going, which depends on meeting the loan's conditions and collecting from a few large cases.
Net realised gains on concluded litigation investments (LCM capital)
Net realised (loss)/gain from concluded investments of A$(63.9)m (FY25: A$22.2m) on an LCM-only basis
page 3Substantial reduction in operating expense base
Operating expenses fell to A$11.0 million in FY26 from A$18.0 million in FY25, with further reductions planned in run-off
page 3The Strategic Review launched during the year did not result in a transaction. The Board has since agreed a long-term amendment to the Group's debt facility with Northleaf, and LCM has moved into run-off: the existing portfolio of case investments will be managed to conclusion, no new investments will be made, and cash realised will be applied to repayment of the facility.
page 3No dividend has been declared or paid in respect of FY26 (FY25: 1.25 cents per share, A$2,680,000 paid). Capital risk management policy: the Group may adjust dividends paid, return capital to shareholders, issue new shares or sell assets to maintain its capital structure; under the amended Northleaf facility no value can be returned to shareholders until the facility is repaid in full.
page 1111 years on one page · FY2016–FY2026
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AUD millions, negatives in brackets. Per-share lines in cents. Share counts in millions. Margins and returns as percentages, calculated from the filed figures. later is what a following report restated the figure to; vs is a second reading that disagrees. The figure shown is the one the original filing printed, and both readings are kept. Click any figure: opens the report page it was read from, highlighted; shows how it was calculated.
26 figures restated in a later report
Every figure is read again from the following year’s report: 259 confirmed, 9 differ, 26 restated.
No figure has been restated: every figure a later report printed again, it printed the same.
26 more figures were restated in FY2016 to FY2023, which a free account opens.