25 June 2026

 

Manolete Partners PLC

("Manolete" or the "Company")

 

Audited results for the year ended 31 March 2026

 

Well positioned for growth in FY27 and beyond; launch of medium-term growth targets

 

Manolete (AIM:MANO), the UK's leading insolvency claims financing company, today announces its audited results for the year ended 31 March 2026 ("FY26").

 

Commenting, Mena Halton, Chief Executive Officer said:

 

"FY26 was a year of strategic progress for Manolete, as we strengthened our team and new business development function to support the next phase of our growth. Our performance remained resilient over the year despite variability in the timing of case completions, and we made strong progress focusing on higher value cases to drive future margin growth.

 

We have today launched medium-term targets to scale the business, demonstrating our ambition and how we will achieve it and we welcome the accountability this provides to shareholders.

 

I am confident we're on track to realise the Company's potential:  we are the established market leader with a unique proposition, we are continuing to invest in the platform to scale the business, we have a strong forward book, there are strong market drivers and we have a highly experienced Board and team that are driven and ambitious."

 

Highlights for the year:

 

·      Strong H2 trading performance drove Realised Revenue1 in line with expectations

·      Increased strong gross cash receipts

·      Progress against strategic priorities led to more referrals, more signed cases and more cases under   management

·      Significant forward book3 growth provides confidence for increased realised revenue and realised PBT in    FY27 and beyond

 

FY26 Financial Highlights

 

Realised revenue of £27.9m (FY25: £29.8m) in line with expectations

·      6% reduction year-on-year due to some large case completions moving into FY27.

·      Higher gross margins of 37% (FY25: 32%) driven by the Cartel settlement in H1 and an increase in the number of higher value, higher margin case completions in H2.

 

Strong gross cash receipts of £26.6m (FY25: £25.6m)

·      Net debt increased from £11.1m to £11.5m as the increase of £1.0m in gross cash receipts was offset by continued investment in new and on-going cases, restructuring costs and the delayed payment from two   large debtors.

 

Adjusted Realised PBT2 of £0.1m (FY25: £0.8m) includes £1.8m provision in relation to two debts

·     Two debtors did not pay when anticipated in the year and the total net exposure to these debtors is £4.7m. The Board remains confident in substantial recovery of these balances, although timing remains uncertain. A £1.8m provision has been made in relation to these debtors. Excluding this provision Adjusted Realised PBT was £1.9m (FY25: £0.8m).

·      Including unrealised profits of £2.7m in the year (FY25: £1.0m), which reflect the significant increase in the value of the forward book, Adjusted PBT was £2.8m (FY25: £1.9m), up 54% year-on-year.

 

Forward book increased significantly in value to £67m (FY25: £49m), with a significant increase in higher value, higher margin cases

·      £18m or 37% increase in value of forward book provides confidence for increased realised revenue and realised PBT in FY27.

·      Driven by 3 new hires in legal team and new business development initiatives.

·      Large cases with a forecast revenue value of at least £0.5m comprise £32m of the forward book, up from   £21m at prior year end.

·     Average claim value in the forward book has risen from £124k at the end of FY25 to £158k at the end of FY26

 

Net Asset Value increased by 3% to £42.4m (FY25: £41.1m), driven by the increased value of case investments

 

FY26 Operational Highlights

 

Delivered measurable progress against strategic priorities

·      Expanded legal team and referral network: The Company made three new hires into the legal team and implemented new business development initiatives to expand the Company's nationwide referral network which helped drive continued growth in the number of new case referrals, which were up 15% to 1,027 in FY26 (FY25: 896 referrals).

·     Growth momentum in number and value of new cases: These initiatives and investments have led to £32m of new cases being signed in FY26 (FY25: £26m), representing a 23% increase year-on-year, and this is expected to increase further during FY27 as the enlarged team continues to drive new case signings at higher levels of volume and value.

 

Refreshed leadership team

·      New executive team: During the year, the Company refreshed its leadership team, with Manolete's Managing Director Mena Halton appointed as Chief Executive Officer in August 2025 and highly experienced public markets CFO Will Sawyer appointed as Chief Financial Officer in December 2025.

 

Market leading reputation maintained

·      Manolete was ranked Band 1 for "Litigation Funding: Insolvency" for the fifth consecutive year in the prestigious Chambers Guide.

 

FY27 Trading and Outlook

 

·    A positive start to FY27: Case signings of £6m and completions of almost £4m in the first two months of FY27 are ahead of the prior year.

·     Additional significant upside opportunity: Provided by the remaining Cartel cases which have a balance sheet value of £10m.

·    Strong market and forward order book provide confidence in growth prospects for FY27: Given the growth in the forward book and the backdrop of an improving insolvency market, the Board are confident of increasing Realised Revenue and Realised PBT in FY27.

·      Launch of medium-term targets to scale the business: the plan includes growing realised revenues by 50% and improving Adjusted Realised PBT margin4  to 12%, while driving higher cash receipts and net cash flow to fund continued investment in new cases to support sustained growth.

 

1 Realised revenue represents revenue on completed cases.

2 Adjusted Realised PBT and Adjusted PBT are defined as Realised Profit Before Tax and Profit Before Tax before Adjusting Items comprising reorganisation and restructuring costs and share based payment charges totalling £1.2m (see note 8 for more detail).

3 The forward book represents the estimated revenue value of open cases (excluding Cartel cases). Note 2.7 to the accounts provides detail on how cases are valued.

4 Adjusted Realised PBT margin is Adjusted Realised PBT divided by Realised Revenue

 

The information contained in this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement this inside information is now considered to be in the public domain.

 

Investor Presentation

 

Chief Executive Officer, Mena Halton, and Chief Financial Officer, Will Sawyer, will host a live presentation via the Investor Meet Company platform on Friday 26 June 2026, commencing at 09:30 BST.

 

Manolete welcomes all current shareholders and interested investors to join and encourages investors to pre-submit questions via the Investor Meet Company dashboard up until 09:00 BST on 25 June 2026. Investors can also submit questions at any time during the live presentation.

 

Investors can sign up to Investor Meet Company for free via: https://www.investormeetcompany.com/manolete-partners-plc/register-investor

 

A recording of the event will be available on the Investor Meet Company platform afterwards.

 

For further information please contact:

 

Manolete Partners

Mena Halton (Chief Executive Officer)                via Houston

Will Sawyer (Chief Financial Officer)

 

Canaccord (NOMAD and Sole Broker)               +44 (0)20 7523 8000

Stuart Andrews

Emma Gabriel

Harry Rees

 

Houston (Financial PR)                                      +44 (0)77 3303 2695

Charlie Barker                                                    +44 (0)20 4529 0549

Nick Jackman

[email protected]

 

About Manolete Partners PLC

Manolete Partners Plc is the UK's leading insolvency claims financing company. Serving a growing market worth over £500 million annually, the Company has a highly experienced team with coverage across the UK and a proven track record of generating strong historic returns across over 1,400 cases financed and completed to date.

 

 

Chairman's Statement

 

The year to 31 March 2026 has been one of strategic progress for Manolete, as we have strengthened the platform for the next phase of growth.

 

During the year, we refreshed the leadership team. We were delighted to appoint Mena Halton as Chief Executive Officer in August 2025 and Will Sawyer as Chief Financial Officer in December 2025. This combination of deep sector expertise and public markets experience provides a strong foundation to execute our strategy. The Board comprises a highly experienced group with a balanced mix of financial, legal and governance expertise.

 

Financial performance remained resilient despite variability in the timing of case completions. Realised revenue was in line with expectations, while gross cash receipts increased. Adjusted realised profit before tax was impacted by a prudent provision in respect of two debtors who did not pay when anticipated and excluding this, underlying performance was ahead of the prior year, reinforcing confidence in the quality of the portfolio.

 

Operationally, the business has made significant progress. Investment in the legal team and targeted business development has driven a 23% increase in the value of new cases signed to £32m. As a result, the forward book, excluding Cartel cases, increased by 37% to £67m, providing strong visibility on future revenue and profit growth. We are increasingly focused on higher-value cases, which are typically longer duration but deliver higher margins and improved returns.

 

The UK insolvency market remains structurally supportive, underpinned by elevated levels of corporate distress and a continued need for specialist funding and expertise. As the market leader, Manolete is well positioned to capture a greater share of this opportunity.

 

A key development during the year has been the launch of our medium-term targets, including growing realised revenues by 50% and improving profit before tax margins to 12%. These targets provide a clear framework for scaling the business and underpin our commitment to delivering sustainable growth and increasing shareholder value.

 

The Board remains confident in the Company's prospects. With a strengthened leadership team, a growing forward book, and a clear strategic focus, Manolete is well positioned to deliver improved financial performance in FY27 and beyond.

 

I would like to thank our colleagues, partners and shareholders for their continued support.

 

Lord Leigh

Non-Executive Chairman

24 June 2026

 

 

CEO's Report

 

Strategic and operational progress

 

We are focused on growing realised revenues and realised PBT, delivering net cashflows to support ongoing growth and shareholder returns over the medium-term. To achieve this our strategic priorities are:

 

1.   Scaling the business;

2.   Improving portfolio quality; and

3.   Enhancing operational efficiency

 

There has been considerable progress made against each priority during the year:

 

1.   Scaling the business

 

During the year the Company made three new hires into the legal team to drive continued growth in the number of new case referrals and implemented new business development initiatives to grow the Company's nationwide referral network with targeted marketing. This has led to:

 

·     A record number of referrals: new case referrals originate from insolvency practitioners and insolvency and restructuring departments within solicitor firms and they have increased by 15% to 1,027 (FY25: 896).

 

·     A 23% increase in the value of new cases being signed: £32m of new cases were signed in FY26 (FY25: £26m), and this is expected to increase further during FY27 as the enlarged team continues to drive new case signings at higher levels of volume and value.

 

·     A record number of live cases and record forward book value: the number of live cases at year end increased by 6% to 446 (FY25: 429) and the forward book value (excluding Cartel cases) increased by 37% to £67m (FY25: £49m).

 

The Company has continued to engage with the public sector on a number of volume referral initiatives.     

 

2.   Improving portfolio quality

 

Our strategy is to maintain a wide portfolio of claims but with a focus on higher value cases. These cases typically take longer to complete but are also higher margin.

 

We have built on our expertise, our proven track record and our reputation to source increasing numbers of higher value claims while continuing to provide a full service to the insolvency market.

 

Our extensive programme of business development and marketing projects throughout the UK on a wide variety of platforms emphasises the value we add to all insolvency claims, and in relation to high value and complex cases in particular. We have expanded our "lunch and learn sessions" which are very popular with IPs and extended our reach into the market with a series of well attended webinars in addition to maintaining our market leading presence with presentations at international and national industry  events As the market leader we are known for delivering results on the full range of claims arising in insolvencies and we highlight our expertise in the areas of auditor professional negligence, the Quincecare duty for banks1 and director misconduct in relation to tax avoidance, VAT fraud and PAYE fraud which are typically higher value claims.

 

This has resulted in more large cases being signed: cases with a forecast revenue value of at least £0.5m comprise £32m of the forward book at the end of FY26 (FY25: £21m), a 52% increase year-on-year.

 

Data on claims, referrals, offers and acceptances is collated and analysed to ensure we are assessing and pricing risk to maximise conversion to signed cases and realisations on signed cases.

 

1 The "Quincecare duty" refers to a bank's duty to exercise reasonable care when processing payments, including (in certain circumstances) refraining from executing instructions given by an authorised agent where there are reasonable grounds to suspect fraud until appropriate enquiries are made.

 

3.   Enhancing operational efficiency

 

Our legal team is becoming more efficient and able to work a higher case volume through economies of scale as the legal team grows. The enlarged team enables the lawyers to focus on an optimum balance between legal work and business development that drives increased profitability. This helps to provide operational leverage.

 

In FY27, the Company is investing in a customer relationship management (CRM) system to support further operational efficiencies and scalability. This investment is expected to enhance the management of referral relationships and case pipelines, improve internal coordination and reporting, and support disciplined growth as case volumes and values increase.

 

Management have a renewed focus on cash collection and has reduced overdue debtors by 18% to £12.3m (FY25: £15.0m).

 

Medium-term objectives

 

By focusing on our three strategic priorities and implementing actions described above, the business will generate higher revenue, margins and revenue per head and we have set the following targets for the medium-term:

 

	FY26	Medium-term target
Realised Revenue	£27.9m	£42m
Average Realised Revenue per Completed Case (ARRCC)	£95k	£150k
Average Realised Revenue (ARR) per lawyer	£1.9m	£2.3m
Realised PBT margin	0.4%	12%
Gross Cash Receipts	£26.6m	£37m
Net cashflow2	(£0.2m)	£2.5m

 

²Net cashflow is the movement in cash and borrowings (i.e. net debt) excluding the capitalisation and amortisation of borrowing set up costs which are non-cash movements

 

Capital allocation

 

Our primary capital allocation priority remains investment in new and on-going cases, particularly higher‑value claims that enhance returns and support economies of scale. We continue to invest selectively in our legal team, business development and operational efficiencies to drive operational gearing and sustainable growth.

 

We consider leverage with net debt under 50% of gross cash receipts to be appropriate to support portfolio growth and to manage timing mismatches between case investment and cash realisation. In assessing balance sheet capacity, the Board looks to gross cash receipts as the most relevant measure of debt serviceability. We do not view debt as a permanent feature of the business and expect leverage to decline structurally as the current portfolio is realised and cash receipts increase.

 

We are committed to maintaining a prudent balance sheet and using debt as a flexible funding tool. We will prioritise maintaining leverage within an appropriate range and returning surplus capital to shareholders. Over the medium term, we expect net debt to reduce as a proportion of gross cash receipts. Shareholder returns are expected to form a recurring element of the capital allocation framework in the medium term and will be delivered through dividends, share buybacks or a combination of both.

 

The strategic priorities are summarised below.

 

Focus: Grow realised revenues and profitability, delivering net cashflows to support ongoing growth and shareholder returns in the medium-term

 

Strategic enablers:

1.   Scale the business - volume referrals and investment in growing legal team and referral network

2.   Improve portfolio quality - focus on higher value, higher margin cases; reduce very small, less profitable claims while maintaining portfolio balance

3.   Enhance operational efficiency - economies of scale enable optimum balance between legal work and business development; investment in CRM

 

Manolete's proposition

 

Manolete continues to be the UK's leading insolvency claims financing company, purchasing, managing and monetising insolvency claims and providing increased returns to creditors.

 

We offer Insolvency Practitioners a fast, risk-free and cost-effective means of securing optimal returns for creditors and across the full range of claims arising in insolvencies whether against the former directors or third parties.

 

Our proposition is based on:

 

·      Unlocking recoveries for creditors: we benefit the wider economic community by increasing returns to creditors including HMRC on claims that otherwise wouldn't be pursued where Insolvency Practitioners lack the capital or risk appetite.

·      Upholding accountability for wrongdoing: we hold directors and third parties to account.

·      Our unique selling point is the ability to swiftly analyse claims, to make fast investment decisions and to optimise returns on claims. Purchasing claims ensures we control the claims which are project managed by our in-house experts. The experienced 17 strong legal team have expertise in all aspects of contentious insolvency and the legal and commercial skills needed to develop claims, successfully navigate the litigation process, control costs and maximise realisations.

·      Our differentiated network of experienced lawyers across the UK provides national coverage and they have built strong relationships with Insolvency Practitioners and external lawyers specialising in insolvency, which generates a high level of repeat business. We have strategic partnerships with all three insolvency regulatory and trade bodies which helps to underpin deal flow and case quality.

·      An exemplary award-winning reputation. We're the only firm that's been awarded the prestigious Band 1 for Insolvency Litigation Funding in the Chambers Guide every year from 2021-2025. We have also been awarded The Financial Times Europe Long-Term Growth Champion 2025.

·      Proven track record with over 1,900 claims financed and almost 1,500 completed to date. Our investment track record, by vintage, continues to demonstrate strong results, with £189m having been recovered in total and demonstrable short case durations averaging 14.1 months3. On average, cash collection takes around 12 months after legal completion.  The vintage table is shown in the CFO Report.

 

3 The Company calculates case duration from the date the investment agreement is signed to the date the case is legally concluded.

 

The Status of the UK Insolvency Market4

 

Insolvencies in England and Wales rose marginally in 2025 to 23,942 (2024: 23,881) and were the second highest on record. Over the last 10 years insolvencies have risen by 63%.

 

Creditors' Voluntary Liquidations (CVLs) account for the majority of company insolvencies in the UK (77% in 2025) and the past four years have seen the highest four numbers for CVLs since 1960. CVLs are the largest source of referrals to Manolete.

 

In 2025, compulsory liquidations were at the highest levels since 2012, having increased by 15% compared to 2024. This is a continued increase from record low levels seen in 2020 and 2021 while restrictions applied to the use of statutory demands and certain winding up petitions (leading to compulsory liquidations). HMRC is often the petitioner on winding up petitions and compulsory liquidations are a good source of referrals to Manolete where there has been director misconduct in relation to tax issues.

 

Administrations have continued to recover from the 18-year low seen during the COVID-19 pandemic in 2021. Administrations typically give rise to higher value claims referrals.

 

The UK insolvency market continues to be significant and provides visible opportunities for Manolete to expand its share of the claim opportunities in that market and the 37% increase in forward book value demonstrates positive progress on claims acquisition.

 

4 Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)

 

Current Trading and Outlook

 

The forward book at 31 March 2026 was £67m and has grown by £18m or 37% year-on-year. This has been driven by the investment in the legal team and business development initiatives which has resulted in higher value cases being signed. Large cases with a forecast revenue value of at least £0.5m comprise £32m of the forward book, up from £21m at prior year end.

 

The Company is focusing on higher value cases, which typically take longer but are higher margin, and the average claim value in the forward book has risen from £124k to £158k.

 

Case signings and completions in the first two months of FY27 are significantly ahead of the prior year and given the growth in the forward book and the backdrop of an improving insolvency market, the Board are confident of increasing Realised Revenue and Realised PBT in FY27.

 

We have launched our medium-term targets to scale the business, demonstrating our ambition and how we will achieve it and we welcome the accountability this provides to shareholders.

 

I am confident we're on track to realise the Company's potential:  we are the established market leader with a unique proposition, we are continuing to invest in the platform to scale the business, we have a strong forward book, there are strong market drivers and we have a highly experienced Board and team that are driven and ambitious.

 

Mena Halton

Chief Executive Officer

24 June 2026

 

 

CFO's Report

 

Comparative information has been restated to reflect the discounting of long-term debtor and creditor balances and the alignment of presentation of contract assets and liabilities. See Note 3 for more detail.

 

Statement of Comprehensive Income

	FY26	FY25	YoY %
		(Restated)
Realised Revenue1	£27.9m	£29.8m	(6%)
Realised gross profit	£10.4m	£9.6m	8%
Realised gross profit margin	37%	32%
Adjusted Realised PBT2	£0.1m	£0.8m	(87%)
Adjusted PBT3	£2.8m	£1.9m	54%
PBT	£1.6m	£1.6m	4%
No. of completed cases	293	291	1%
Average Realised Revenue per Completed Case	£95k	£102k	(7%)
No. of lawyers (FTEs)	14.9	13.8	8%
Average Realised Revenue per lawyer	£1.9m	£2.2m	(14%)

 

1. Revenue from completed cases

2. Realised PBT excluding adjusting items

3. Total PBT excluding adjusting items

 

FY26 represents a year of underlying operational progress alongside short-term earnings volatility, primarily driven by case timing and specific debtors not making payment when anticipated.

 

The modest reduction in realised revenue was primarily driven by the timing of larger case completions shifting into FY27. This was more than offset operationally by improved realised gross margins (37% vs 32%) driven by the Cartel settlement in H1 and an increase in the number of higher value, higher margin case completions in H2.

 

Despite a 6% reduction compared to FY25, realised revenue in FY26 was still considerably higher than previous years.

 

Two debtors did not pay when anticipated in the year and the total net exposure to these debtors is £4.7m. The Board remains confident in substantial recovery of these balances, although timing remains uncertain and has made a £1.8m provision. Excluding this provision, Adjusted Realised PBT was £1.9m (FY25: £0.8m).

 

The divergence between Adjusted Realised PBT of £0.1m and Adjusted PBT of £2.8m reflects the significant growth in the forward book and associated gross profit on unrealised cases of £2.7m, being the fair value movement on open cases. PBT, which includes Adjusting Items of £1.2m that predominantly relate to Board restructuring, was £1.6m (FY25: £1.6m).  The reconciliation between profitability measures is as follows:

 

	Note	31 March 2026   £000s		31 March 2025 (Restated) £000s
Adjusted Realised Profit Before Tax		113		848
Gross profit on unrealised cases	13	2,735		1,006
Adjusted Profit Before Tax		2,848		1,854
Adjusting items	7	(1,227)		(298)
Profit Before Tax		1,621		1,556

 

Income statement presentation

 

The presentation of the income statement has been revised so that profits attributable to unrealised cases are recognised within gross profit only, rather than being reflected within both gross revenue and gross profit. The Board believes this change enhances the clarity and transparency of the Company's performance.

 

Operating expenses

	31 March 2026	31 March 2025	YoY %
	£000s	£000s
Wages and salaries	3,783	4,040	(6%)
Professional fees	842	718	17%
Marketing costs	340	323	5%
Other costs, including office costs	643	741	(13%)
Operating overheads	5,608	5,822	(4%)
Expected credit loss	3,588	1,343	167%
Adjusting items	1,227	298	311%
Total operating expenses	10,423	7,463	40%

 

Operating overheads excluding one-off and non-cash items fell by 4% year-on-year to £5.6m. The continued investment in scaling the platform with three new legal team hires was more than offset by a saving in management costs due to the Company restructuring its leadership team, including the CEO and CFO roles, and making changes to operational roles to improve efficiency and decision making. The non-recurring element of the costs has been presented as adjusting to enable a more refined evaluation of financial performance.

 

Finance costs have reduced considerably from £1.6m to £1.1m due to a negotiated reduction in the interest charged on the loan facility from March 2025 from 4.7% above SONIA to 4.0% above SONIA and due to interest rates having fallen considerably since the beginning of FY26. Although they are expected to increase over the next 12 months, they are expected to remain under the level at the beginning of FY26.

 

The Company has benefited from utilising brought forward tax losses which has reduced the amount of corporation tax expected to become payable in respect of FY26 to £0.3m.

 

Earnings per share

 

Earnings per share remained broadly the same at 2.50 pence (FY25: 2.52 pence as restated), as earnings remained flat at £1.1m.

 

Dividend

 

The Board has not recommended a dividend in respect of this financial year (FY25: £nil). The priority of the Company is to retain cash reserves for investment in current and future cases and reduce net debt.

 

Statement of Financial Position

		FY26	FY25	YoY %
			(Restated)
Net debt		(£11.5m)	(£11.1m)	4%
Overdue debtors (gross)		£12.3m	£15.0m	(18%)
Current debtors as % of total gross debtors		62%	57%
Balance sheet value of investments (incl. Cartel)		£46.0m	£41.4m	11%
Net Asset Value (NAV)		£42.4m	£41.0m	3%
NAV per share (£)		£0.97	£0.94	3%

 

Net debt increased from £11.1m to £11.5m as the increase of £1.0m in gross cash receipts was offset by continued investment in new cases, restructuring costs and the delayed payment from the two large debtors.

 

Despite two debtor payments not received as anticipated, overdue debtors fell by 18% to £12.3m as the Company renewed its focus on collections, and consequently current debtors within term increased from 57% to 62% of total debtors.

 

Investment in cases are shown at fair value, based on the Company's estimate of the future realised profit, plus prepaid capitalised costs. The investment value has increased by almost £5m to £46.0m due to an increase in signed cases, an increase in the value of cases signed in previous years and an increase in work-in-progress relating to on-going cases.

 

Management review valuations of cases quarterly, following discussion on a case-by-case basis with the in-house legal team, to reflect management's view of fair value. In addition, at the final reporting periods, a sample of material valuations are corroborated with the external lawyers working on the case and an independent legal expert, who provide legal opinions as to the status of the case. The Company does not capitalise any internal costs, such as salaries.

 

As at 31 March 2026 the Company had drawn down £13.25m (FY25: £12.5m) of its £17.5m HSBC loan facility and continued to deploy loan capital during the year to finance investment in cases. The Company held cash reserves of £1.2m at 31 March 2026.

 

The Company met all its covenants in FY26 in relation to the loan facility.  HSBC waived the requirement for former CEO Steven Cooklin to maintain a minimum shareholding in the Company.

 

Net Asset Value has increased by 3% to £42.4m (FY25: £41.0m), driven by the increased value of case investments.

 

Cashflow

		FY26	FY25	YoY %
			(Restated)
Gross cash receipts		£26.6m	£25.6m	4%
Cashflow before reinvestment in portfolio		£8.1m	£9.4m	(14%)
Cash invested in portfolio		(£7.2m)	(£6.9m)	5%
Net cashflow		(£0.2m)	£0.5m	(140%)

 

Gross cash receipts of £26.6m were £1.0m higher than the previous year due to the strong completions in the year, including the Cartel case settlement, and a renewed focus on cash collection relating to completions in prior years.

 

The business continues to demonstrate strong cash generation dynamics with cash generated before reinvestment of £8.1m (FY25: £9.4m) and reinvestment in new and existing cases of £7.2m (FY25: £6.9m). The reduction in cash generated before reinvestment is due to one-off restructuring costs. The Company has increased the amount invested in new and on-going cases as part of the deliberate strategy to drive future growth.

	31 March 2026	31 March 2025
	£000s	£000s
Gross cash receipts from completed cases	26,577	25,634
IP share and legal costs on completed cases	(11,589)	(10,471)
Net cash generated from completed cases	14,988	15,163
Overheads	(6,927)	(5,770)
Corporation tax	-	-
Net cash generated from operations before investment in cases	8,061	9,393
Investment in new and on-going cases	(7,174)	(6,865)
Net cash generated from operations	887	2,528
Net interest paid	(1,082)	(1,308)
Loan arrangement fees	-	(730)
Net cashflow	(195)	490

 

Net cashflow is the movement in cash and borrowings (i.e. net debt) excluding the capitalisation and amortisation of borrowing set up costs which are non-cash movements.  The reconciliation between the net movement in cash per the cashflow statement and net cashflow is as follows:

 

	31 March 2026	31 March 2025
	£000s	£000s
Net increase / (decrease) in cash	555	(760)
Net (increase) / decrease in borrowings	(750)	1,250
Net cashflow	(195)	490

 

Signed cases and forward book

		FY26	FY25	YoY %
Signed cases in year		£32.0m	£26.0m	23%
Forward book revenue value (excl. Cartel)		£67.0m	£49.0m	37%
No. of case referrals		1,027	896	15%
No. of signed cases		289	284	2%
No. of live cases in forward book		446	419	6%
Average forecast revenue value of signed cases		£111k	£92k	21%
Average forecast revenue value of live cases in forward book		£158k	£124k	28%

 

The most significant indicator of future performance is the forward book, which increased materially to £67m (+37%), excluding Cartel cases. The forward book represents management's estimate of future realised revenue from open cases. The principal driver of the increase was £32m of new cases signed (+23%), together with a rise in the average case value within the forward book from £124k to £158k. This reflects an increasing proportion of larger, higher-value claims, which are typically associated with higher margins.

 

This supports improving portfolio quality, scale and earnings visibility, and underpins confidence in increased revenue and profits in FY27.

 

Over the medium term, the Company expects a gradual normalisation of the current higher level of the forward book.

 

Historic Returns

The vintage table demonstrates consistent portfolio investment performance over 17 years. 1,477 cases have been completed, representing 76% of lifetime investments, with an average case completed in 14.1 months. Gross margins have been steadily increasing in recent years from 26% for cases signed in FY22 to over 40% for cases signed in FY25 and FY26.

 

The combination of a significantly larger forward book, improved portfolio quality and continued investment in legal capability positions the business to deliver improved realised revenues and cash generation in FY27 and beyond.

 

 

Will Sawyer

CFO

24 June 2026

 

 

Statement of Comprehensive Income

 

		31 March  2026		31 March  2025 (Restated)
	Note	£'000s		£'000s
Realised Revenue	5	27,877		29,793
Costs related to Realised Revenue		(17,457)		(20,159)
Gross Profit on Realised Cases		10,420		9,634
Gross Profit on Unrealised Cases	13	2,735		1,006
Gross Profit		13,155		10,640
Operating expenses	9	(10,423)		(7,463)
Operating profit	7	2,732		3,177
Finance income	10	7		22
Finance expense	10	(1,118)		(1,643)
Profit before tax		1,621		1,556
Analysed as:
Adjusted Realised Profit Before Tax		113		848
Gross profit on unrealised cases	13	2,735		1,006
Adjusted Profit Before Tax		2,848		1,854
Adjusting items	8	(1,227)		(298)
Profit Before Tax		1,621		1,556
Taxation	11	(527)		(454)
Profit and total comprehensive income for the year		1,094		1,102
Earnings per share
Basic (pence per share)	12	2.50p		2.52p
Diluted (pence per share)	12	2.46p		2.48p

 

The above results were derived from continuing operations. See Note 3 for details of the restatement.

 

The notes form part of these financial statements.

 

 

Statement of Financial Position

 

Company Number: 07660874		31 March 2026			31 March 2025 (Restated)
	Note	£'000s		£'000s
Non-current assets
Investments	13	10,252		11,340
Trade and other receivables	14	12,026		11,486
Deferred tax asset	17	68		278
Total non-current assets		22,346		23,104
Current assets
Investments	13	35,708		30,110
Trade and other receivables	14	12,495		19,372
Cash and cash equivalents	15	1,247		692
Total current assets		49,450		50,174
Total assets		71,796		73,278
EQUITY AND LIABILITIES
Equity
Share capital	19	175		175
Share premium	20	157		157
Share based payment reserve	20	1,293		1,153
Retained earnings	20	40,777		39,565
Total equity		42,402		41,050
Non-current liabilities
Trade and other payables	16	6,771		7,271
Borrowings	18	12,745		11,762
Total non-current liabilities		19,516		19,033
Current liabilities
Trade and other payables	16	9,559		13,195
Corporation tax payable	11	319		-
Total current liabilities		9,878		13,195
Total liabilities		29,394		32,228
Total equity and liabilities		71,796		73,278

 

The notes form part of these financial statements. See Note 3 for details of the restatement.

 

The financial statements were approved by the Board of Directors and authorised for issue on 24 June 2026.

 

 

 

Statement of Changes in Equity

 

		Share capital	Share premium	Share based payment reserve	Retained earnings	Total Equity
		£'000s	£'000s	£'000s	£'000s	£'000s
As at 1 April 2024 (previously reported)		175	157	1,076	39,063	40,471
Restatement adjustment		-	-	-	(600)	(600)
As at 1 April 2024 (restated)		175	157	1,076	38,463	39,871
Comprehensive income
Profit for the year as restated		-	-	-	1,102	1,102
Transactions with owners
Share based payment expense		-	-	283	-	283
Deferred tax on share-based payments		-	-	(206)	-	(206)
As at 31 March 2025 as restated		175	157	1,153	39,565	41,050
Comprehensive income
Profit for the year		-	-	-	1,094	1,094
Transactions with owners
Share based payment expense		-	-	261	-	261
Share based payments exercised		-	-	(118)	118	-
Deferred tax on share-based payments		-	-	(3)	-	(3)
As at 31 March 2026		175	157	1,293	40,777	42,402

 

The notes form part of these financial statements. See Note 3 for details of the restatement.

 

 

Statement of Cash Flows

 

		31 March  2026		31 March  2025 (Restated)
	Note	£'000s		£'000s
Profit before tax		1,621		1,556
Adjustments for non-cash items:	24	4,037		7,515
Operating cashflows before movements in working capital		5,658		9,071
Changes in working capital:
Net decrease/(increase) in trade and other receivables		6,337		(2,602)
Net (decrease)/increase in trade and other payables		(3,933)		2,924
Net cash generated from operations before corporation tax and investments		8,062		9,393
Investment in cases	13	(7,175)		(6,865)
Net cash generated from operating activities		887		2,528
Cash flows from investing activities
Finance income received	10	7		22
Net cash generated from investing activities		7		22
Cash flows from financing activities
Proceeds from borrowings	18	5,250		500
Repayments of borrowings	18	(4,500)		(1,750)
Interest paid		(1,089)		(1,330)
Loan arrangement fees		-		(730)
Net cash used in financing activities		(339)		(3,310)
Net increase/(decrease) in cash and cash equivalents		555		(760)
Cash and cash equivalents at the beginning of the year		692		1,452
Cash and cash equivalents at the end of the year		1,247		692

 

The notes form part of these financial statements. See Note 3 for details of the restatement.

 

 

Notes forming part of the Financial Statements

 

 

1.   Company information

 

Manolete Partners PLC (the "Company") is a public company limited by shares incorporated in England and Wales. The Company is domiciled in England and its registered office is 2-4 Packhorse Road, Gerrards Cross, Buckinghamshire, SL9 7QE. The Company's ordinary shares are traded on the AIM Market.

 

The principal activity of the Company is that of acquiring and funding insolvency litigation cases.

 

2.   Summary of significant accounting policies

 

The principal accounting policies applied in the preparation of these financial statements are set out below. The policies have been consistently applied to all the years presented, unless otherwise stated.

 

2.1  Basis of preparation

 

The financial statements have been properly prepared in accordance with UK adopted International Accounting Standards and in conformity with the requirements of the Companies Act 2006. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs the Company and of the profit or loss of the Company for that period.

 

Measurement bases

 

The financial statements have been prepared under the historical cost convention except for investments in insolvency litigation cases which are held at fair value through profit or loss. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

 

The preparation of the financial statements in compliance with UK adopted International Accounting Standards requires the use of certain critical accounting estimates and management judgements in applying the accounting policies. The significant estimates and judgements that have been made and their effect is disclosed in note 4.

 

2.2  Going concern

 

The Company achieved an improved performance in the year, reporting Adjusted Profit Before Tax of £2.8m, cash generated from operations (before new investments) of £8.1m and net current assets at 31 March 2026 of £39.6m.

 

Given current trading levels, in particular new case volumes being signed with a steady flow of completions along with the general level of insolvencies in the economy as a whole, the Directors of the Company have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and for at least one year from the date of the signed financial statements.

 

Management has updated its forecasts for the business with particular focus on the next 12 months and based on current trading levels and the existing HSBC debt financing, the Directors are of the opinion that the Company has sufficient liquidity headroom and resources to continue in operation and meet its liabilities as they fall due, for the foreseeable future.

 

The HSBC RCF loan was renewed in March 2025 for a term of 39 months with the opportunity to extend by a further year, The facility is for £17.5m. The Company met all its covenants in FY26 and the Company is forecast to operate within the terms of the covenants for the next 12 months from signing. 

 

In certain downside scenarios, covenant headroom could become tight during the forecast period. In such circumstances, based on the Company's long-standing relationship with HSBC and its track record of performance, the Directors have a reasonable expectation that HSBC would be supportive, including, if necessary, through the agreement of appropriate waivers or amendments, although no such support is currently required or has been formally agreed.

 

Whilst no equity funding is being sought, it remains an option in the future for the Company should additional growth funding be required as the number of cases in the portfolio increases.

 

These sources of finance, along with a profitable forecast for trading and cash generation for the next 12 months and with mitigating actions available to the directors, if short-term cash was needed to be generated, has led the Directors to conclude that it is appropriate to adopt the going concern basis in preparing the financial statements.         

 

For these reasons, they continue to adopt the going concern basis in preparing the Company's financial statements.

 

2.3  Functional and presentation currency

 

The financial information is presented in the functional currency, pounds sterling ("£") except where otherwise indicated.

 

2.4  New standards, amendments and interpretations

 

New standards, amendments and interpretations

 

The Company has adopted all new and amended IFRS Accounting Standards and interpretations issued by the International Accounting Standards Board that are effective for accounting periods beginning on or after 1 April 2025. The adoption of these standards and amendments has not had a material impact on the Company's financial statements.

 

Standards issued but not yet effective

 

At the date of authorisation of these financial statements, the following standards and amendments were in issue but not yet effective and have not been applied in these financial statements:

 

-       Amendments to IFRS 9 'Financial Instruments' and IFRS 7 'Financial Instruments: Disclosures' - Classification and Measurement of Financial Instruments (effective for accounting periods beginning on or after 1 January 2026);

 

-       Annual Improvements to IFRS Accounting Standards (effective for accounting periods beginning on or after 1 January 2026);

 

-       IFRS 18 'Presentation and Disclosure in Financial Statements' (effective for accounting periods beginning on or after 1 January 2027);

 

-       IFRS 19 'Subsidiaries without Public Accountability: Disclosures' (effective for accounting periods beginning on or after 1 January 2027).

 

The Directors are currently assessing the impact of these standards and amendments on the Company's financial statements.

 

Based on an initial assessment, the Directors do not expect the application of the amendments to IFRS 9 and IFRS 7, or the Annual Improvements to IFRS Accounting Standards, to have a material impact on the recognition and measurement of the Company's financial assets, including its investments and trade receivables.

 

IFRS 18 will introduce new requirements for the presentation and disclosure of financial information in the financial statements. The Company expects this standard to result in changes to the presentation and disclosure of certain items within the financial statements, although it is not expected to have a material impact on the Company's underlying financial position or performance.

 

The Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

 

2.5  Revenue recognition

 

Presentation

 

As revenue relates entirely to the management of financial assets, revenue is recognised under the classification and measurement provisions of IFRS 9.

 

The presentation of the income statement has been revised so that profits attributable to unrealised cases are recognised within gross profit only, rather than being reflected within both revenue and gross profit. The Board believes this change enhances the clarity and transparency of the Company's performance.

 

Realised Revenue

 

Realised consideration occurs when a case is settled or a Court judgment received. This is an agreed upon and documented figure, although in relation to judgments Management assess the likely recoverability and do not necessarily recognise the full judgment. The unwinding of discounts on case-related receivables and liabilities is presented within revenue and cost of sales respectively, as it reflects the realisation of value inherent in the Company's operating model rather than a separate financing activity.

 

Unrealised Profits

 

The movement in the fair value of investments is recognised as unrealised gains within gross profit. This is management's assessment of the increase or decrease in valuation of an open case, the inclusion of value for a new case and the removal of the fair value of a completed case. These valuations are estimated following the progress of a case towards completion and reflect the judgement of the legal team working on the case (see Note 4). Hence, unrealised gross profit is the movement in the fair value of the investments in open cases over a period of time, net of eliminations of the previously recorded fair value of completed cases.

 

When a case is completed the carrying value is a deduction to unrealised gross profit and the actual settlement value is recorded as realised revenue.

 

Revenue recognition differs between a purchased case, where full recognition of the settlement is recognised as revenue (including the insolvent estate's share) and a funded case where only the Company's share of a settlement is recognised as revenue. This differing treatment arises because the Company owns the rights to the purchased case.

 

2.5  Finance expense and income

 

Finance expense

 

Finance expense comprises interest on bank loans and other interest payable. Interest on bank loans and other interest is charged to the Statement of Comprehensive Income over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. Finance expenses also include costs associated with loan renewal fees, covenant amendments and unutilised fees.

 

Finance income

Finance income comprises interest receivable on funds invested and other interest receivable. Interest income is recognised in profit or loss as it accrues using the effective interest method.

 

2.6  Employee benefits: Pension obligations

 

The Company operates a defined contribution plan. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. The Company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

 

The Company has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

 

2.7  Financial assets

 

Classification

 

The Company classifies its financial assets at amortised cost or fair value through profit or loss. Financial assets do not comprise prepayments. Management determines the classification of its financial assets at initial recognition.

                               

Financial assets at amortised cost

 

The Company's financial assets held at amortised cost comprise trade and other receivables and cash in the Statement of Financial Position.

 

These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of services to customers (e.g. trade receivables) but also incorporate other types of contractual monetary assets. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortised cost using the effective interest method, less provision for impairment.

 

Impairment of financial assets

 

Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the Company will be unable to collect all of the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired asset.

 

Impairment provisions for trade receivables are recognised specifically against receivables where Management have identified default or delays to payment in addition to the simplified approach within IFRS 9 using lifetime expected credit losses. The Company applies the simplified approach in providing for expected credit losses under IFRS 9 which allows the use of the lifetime expected credit loss provision for all trade receivables. In measuring the expected credit losses, trade receivables have been stratified by settlement type and days past due. Expected lifetime credit loss rates are based on payment profiles of completed cases from April 2022 to January 2026. For trade receivables which are reported net, such provisions are recorded in a separate provision account with the loss being recognised within administrative expenses in the Statement of Comprehensive Income. On confirmation that the trade receivables will not be collectable, the gross carrying value of the asset is written off against the associated provision.

 

Investments

 

Investments in cases are categorised at fair value through profit or loss. Fair values are determined on the specifics of each investment and will typically change upon an investment progressing through a key stage in the litigation process in a manner that, in the Directors' opinion, would result in a third party being prepared to pay an amount different to the original sum invested for the Company's rights in connection with the investment. Positive material progression of an investment will give rise to an increase in fair value and an adverse progression a decrease. Management identifies and selects a number of material case valuations for external opinion. As such at any year-end, the valuation of a sample of material investments was underpinned by an external legal opinion, which supports the Directors' valuation.

 

The cartel cases are classified as non-current investments, with the exception of those which are in advanced negotiations, as they are long-term in nature where settlement involves a considerable level of analysis, negotiation and legal process that is expected by management to exceed 12 months. All other cases are classified as current assets as the Company policy is to reach a timely settlement on these cases in order to re-cycle working capital and this is expected to be within 12 months (although this can vary case to case and year to year, and the average age of settled cases is 14.1 months).

 

Valuation of investments

 

Determining the value of purchased and funded litigation requires an estimation of the value of such assets upon acquisition and at each reporting date. The future income generation of such litigation is estimated from known information and the opinion of external senior specialist counsel and solicitors in select cases. Valuations of each case, at the balance sheet date, are therefore arrived at by the Directors, considering Counsel's, in-house or external lawyer's, assessment of the chances of a successful outcome, the state of progress of the matter through the legal system and the Directors' assessment of all other risks specific to the case.

 

Trade receivables

 

Trade receivables are recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any expected credit loss allowance. Where settlement terms extend beyond 12 months, receivables are discounted to their present value using an appropriate effective interest rate. The unwinding of the discount is recognised within revenue, reflecting the underlying commercial substance of the Company's case-related activities.

 

2.9 Financial liabilities

 

The Company classifies its financial liabilities in the category of financial liabilities at amortised cost. All financial liabilities are recognised in the statement of financial position when the Company becomes a party to the contractual provision of the instrument. Trade and other payables and borrowings are included in this category.

 

Borrowings

 

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings using the effective interest method.

 

Borrowings are de-recognised from the balance sheet when the obligation specified in the contract is discharged, is cancelled or expires. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other operating income or finance costs.

 

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

 

Arrangement fees in relation to a £17.5m loan facility with HSBC agreed in March 2025 have been capitalised and amortised over the length of the agreement of 3.25 years. These capitalised costs of £505k as at 31 March 2026 (31 March 2025: £738k) have been offset against borrowings in the Statement of Financial Position.

 

Trade and other payables

 

Trade and other payables are initially recognised at fair value and subsequently measured at amortised cost. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Amounts due to insolvency practitioners are payable upon recovery of underlying receivables and are measured on a discounted basis where settlement extends beyond 12 months.

 

2.10 Share capital

 

Ordinary shares are classified as equity. There is one class of ordinary share in issue, as detailed in note 19. Incremental costs directly attributable to the issue of new shares are shown in share premium as a deduction from the proceeds, net of tax.

 

2.11 Income tax

 

Income tax for the years presented comprises current and deferred tax. Income tax is recognised in profit or loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

 

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised

 

Temporary differences are not recognised if they arise from the initial recognition of assets or liabilities in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.

 

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

 

2.12 Share-based payments

 

Equity-settled share-based compensation benefits are provided to employees. Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services.

The cost of equity-settled transactions is measured at fair value on grant date. Fair value is independently determined using the Monte Carlo, Binomial or Black Scholes pricing model which takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the consolidated entity receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.

The cost of equity-settled transactions is recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods.

 

3.   Restatement of comparative information

 

During the year, the Company updated its accounting treatment to better align with the requirements of IFRS 9. The changes relate to:

·      the measurement of non-current receivables and corresponding liabilities, which are now discounted to present value in accordance with IFRS 9; and

·      the presentation of contract assets and contract liabilities, which are now amalgamated within trade receivables and accruals respectively.

Comparative information has been restated accordingly.

 

(a) Discounting of non-current receivables and liabilities

Where receivables and related liabilities have settlement periods extending beyond 12 months, they are now measured at amortised cost using the effective interest method, including discounting to present value. Previously, these balances were presented on an undiscounted basis.

The Directors consider this adjustment to better align with the requirements of IFRS 9. The impact of this change is to reduce the carrying value of non-current receivables and associated liabilities at initial recognition, with the discount subsequently unwound through the income statement over the life of the balances.

The unwinding of the discount is recognised within revenue and cost of sales, reflecting the underlying commercial substance of the Company's case-related activities.

 

(b) Presentation of contract assets and liabilities

The Company has revised the presentation of contract assets and contract liabilities:

·      contract assets are now presented within trade receivables; and

·      contract liabilities are presented within accruals and other payables.

This change reflects how these balances are managed and monitored and aligns their presentation with similar balances. This represents a reclassification only and has no impact on profit or net assets.

 

(c) (i) Impact on the financial statements of discounting

The impact of the restatement on the financial statements is summarised below. The retained earnings adjustment relates to the restatement of balances as at 1 April 2024, being the opening position for the comparative period, and it reflects the cumulative impact of discounting non-current receivables and liabilities recognised prior to 1 April 2024.

	Effect on FY26		Effect on FY25
	£000s		£000s
Statement of Comprehensive Income
(Decrease)/increase in realised revenue	(89)		318
(Increase)/decrease in cost of sales	(2)		(109)
(Decrease)/increase in profit	(91)		209

 

		Effect on FY26	Effect on FY25	Effect on FY24
	£000s		£000s	£000s
Statement of Financial Position
(Decrease)/Increase in non-current trade receivables	(89)		318	(1,023)
(Increase)/decrease in non-current accruals	(2)		(109)	423
Decrease/(increase) in retained earnings	91		(209)	600

 

 

(c) (ii) Impact on the financial statements of revised presentation of contract assets and liabilities

		Effect on FY26	Effect on FY25
	£000s		£000s
Statement of Financial Position
Decrease in Contract asset	(2,729)		(2,767)
Increase in Trade receivable due in excess of one year	2.729		2,767
Decrease in Contract liability	2,047		1,984
Increase in Accruals due in excess of one year	(2,047)		(1,984)
Retained earnings	-		-

 

The restatement impacts earnings per share for the comparative period. For FY25 basic earnings per share increased from 2.04p to 2.52p and diluted earnings per share increased from 2.01p to 2.48p.

The above adjustments do not impact the Company's cash flows.

 

(d) Accounting treatment of discount unwind

The unwinding of the discount is presented within revenue and cost of sales rather than as finance income or expense.

This reflects that:

·      the underlying receivables and liabilities arise directly from the Company's case-related operations;

·      the timing of their settlement is an inherent feature of those arrangements rather than a separate financing decision;    and

·    the accretion of these balances over time reflects the recognition of case-related value as the recovery horizon    shortens.

Accordingly, the Directors consider that presentation within revenue (for receivables) and cost of sales (for IP liabilities) best reflects the economic substance of the Company's performance.

 

4.   Significant judgements and estimates

The preparation of the Company's financial statements under UK adopted International Accounting Standards requires the directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the statement of financial position date, amounts reported for revenues and expenses during the year, and the disclosure of contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the assets or liability affected in the future.

Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are detailed below.

 

Valuation of investments

Investments in cases are categorised as fair value through profit or loss. Fair values are determined on the specifics of each investment and will typically change upon an investment progressing through a key stage in the litigation  process in a manner that, in the directors' opinion, would result in a third party being prepared to pay an amount different to the original sum invested for the company's rights in connection with the investment. Due to the nature of Manolete's business model, an unrealised fair value gain will be recognised on initial investment in a case. Thereafter, positive material progression of an investment will give rise to an increase in fair value and an adverse progression a decrease.

 

The key stages that an individual case passes through typically includes: initial review on whether to make a purchase or funding offer, once a funding or purchase agreement is entered  into, external solicitors are instructed, pre action correspondence then follows with an invitation to engage in alternative dispute resolution (which is repeated throughout the process); if the claim is not settled at a pre action stage legal proceedings are issued and pursued to trial if necessary. The progress of a case feeds into the valuation of that case, as set out below.

In accordance with IFRS 9 and IFRS 13, the Company is required to recognise live case investments at fair value at the half year and year end reporting periods.

 

The Company undertakes the following steps:

• On a bi-weekly basis, the internal legal team report developments into the Investment Committee on a case-by-case basis in writing;

• On a quarterly basis, in consultation with the internal legal team, the directors adjust case fair values based upon objective case developments, for example: an offer to settle, mediation agreed, positive or negative legal advice. These adjustments to fair value may be an increase or decrease in value or there may be no change required; and

• At year end written assessments are obtained for a sample of open case investments from external solicitors or counsel instructed on the case on behalf of the Company.

 

In all cases, the headline value of the claim is the starting point of a valuation from which a discount is applied to reflect the legal merits and the defendant's net worth position, progress of the case through the legal process and settlement offers.

 

Movements in fair value on investments in cases are included within Gross Profit on Unrealised Cases in the Statement of Comprehensive Income. Fair value gains or losses are unrealised until a final outcome or stage is reached. At the year-end there were 446 open cases and of these 376 had a valuation of less than £100k. These cases are not expected to have an individually material impact on the business when they are settled. The remaining 70 cases make up £26.8m of the Investments and are material to the business. The significant judgements and estimates in their valuations at the balance sheet date were as follows:

 

(a) Judgements

i.      The amount that cases are discounted to recognise cases being settled short of trial based on the facts of each case and management's judgement of the likely outcome.

ii.     Litigation is inherently uncertain. The Company seeks to mitigate its risk by seeking to settle cases as early as possible. Nevertheless, the risk and uncertainty can never be completely removed. The key inputs are the headline claim value, the likely settlement value, the opposing party's ability to pay and the likely costs in achieving judgment. These inputs are inter-related to an extent.

iii.    The Company accrues for future legal costs on the basis that cases will be settled before trial which is how the vast majority of cases completed to date have been settled. When it becomes clear a case will progress to trial then additional costs are accrued at that point.

iv.    The Company classifies all legal cases (non-cartel) as current assets as the intention and expectation is to reach a settlement within 12 months. Cartel cases are classified as non-current assets as the legal process for these Competition Law cases is likely to be a longer-term process.

 

(b) Estimates

i.      All cases are subject to the internal key stages and regular fair value review processes described above. The fair value review requires an estimate to be made by senior management based upon the facts and progress of the case and their experience. For a sample of cases at year end, an external opinion is requested from counsel or a solicitor who is instructed on the case which provides an independent view of the merits of the case.

ii.     These assessments include various assumptions that could change over time and lead to different assessments over the next 12 months.

iii.    Future legal costs have been estimated on the likely costs to complete and updated as the claim progresses. Future results could be materially impacted if these original estimates change either positively or negatively.

iv.    Recovery of debts is based on the Company's ability to recover from the counterparty. Prior to case acceptance, a net worth review of the proposed defendant is undertaken to assess whether they own sufficient assets to support the claim value. Cases that are completed by way of settlement typically recover in full, whilst cases completed by judgment are less predictable in terms of full recovery and are valued accordingly.

v.     The valuations assume that there is no recovery for interest and costs except for the cartel cases which do assume a figure for both recovery of costs and interest. If cases go to trial and result in a judgment in the Company's favour, it is likely that the Company will be awarded interest and costs. Interest accrues on a judgment debt at 8% per annum.

 

Sensitivity analysis has not been included in the financial statements due to the vast number of inputs and variables which are inherently specific to each case, making it impossible to provide meaningful data. Whilst the Board considers the methodologies and assumptions adopted in the valuation are supportable, reasonable and robust, because of the inherent uncertainty of valuation, it is reasonably possible, on the basis of existing knowledge, that outcomes within the next financial year are different from the assumptions could require a material adjustment to the carrying amount of the £46.0m of investments disclosed in the balance sheet (Note 13). However, as an indication we note that a 10% increase/(decrease) in the fair value of the Company's top 20 cases (excluding cartel cases) would result in a change in the fair value investment of +/- £1.4m.

 

Approach to cartel case valuation

 

Following publication of the ruling in respect of an EU Competition test case (the "BT / Royal Mail" case) management requested that an independent expert valuation firm apply the assumptions contained within the test case ruling to the valuation of Manolete's cartel cases. Following the ruling and the receipt of further case data, the directors consider that additional discounting, or the use of a "tier based" system is not required and the year-end valuation represents Manolete's percentage ownership of the overall case valuation. The cartel case carrying valuation as at 31 March 2026 was £10.3m (FY25 £15.4m), with the decrease during the year due to settling a claim for a net value of £3.2m and a write down in the value of the settled claim and remaining claims of £1.9m.  

 

Recoverability of trade receivables

 

The Company normally receives payment once a claim has been completed by way of settlement or judgment. The average time from taking on a case to completion is 14.1 months, although this can vary significantly from case to case. As part of the settlement agreement, the timing of payment of the settlement sum is agreed and this is a legally binding document. Settlement sums can be due on completion of the settlement or paid in instalments over a defined period.

 

As such, Management applies a number of estimates and judgements in the recording of trade receivables, for example in relation to judgments Management assess the likely recoverability and do not necessarily recognise the full judgment value.

 

The Company applies the simplified approach in providing for expected credit losses under IFRS 9 which allows the use of the lifetime expected credit loss provision for all trade receivables. In measuring the expected credit losses, trade receivables have been stratified by settlement type and days past due. Expected lifetime expected credit loss rates are based on the payment profiles of completed cases from April 2022 to January 2026. The Company attempts to assess the probability of credit losses but seeks to mitigate its credit risk by undertaking rigorous net worth checks before taking on a case. Occasionally credit defaults do occur when counterparties default on an agreed settlement payable by instalments.

 

Recovery of receivables is closely monitored by management and action, where appropriate, will be taken to pursue any overdue payments. Where judgment is given in favour of the company, charging orders will be obtained wherever possible. The receivables' ageing analysis is also evaluated on a regular basis for potential doubtful debts. Where potential doubtful debts are identified specific bad debt provisions are held. It is the Directors' opinion that no further provision for doubtful debts is required. See note 14 of the accounts.

 

Discounting of trade receivables and IP liabilities

 

The valuation of non-current receivables and associated IP liabilities requires judgement in determining the expected timing of cash flows and the appropriate discount rate to apply. These estimates impact both the carrying value of receivables and associated IP liabilities and the timing of revenue recognition and cost of sales through the unwinding of the discount. A change in these assumptions could impact the amounts recognised in the financial statements.

 

5.   Segmental reporting

 

During the year ended 31 March 2026, revenue was derived from cases funded on behalf of the insolvent estate and cases purchased from the insolvent estate, which are mostly undertaken within the UK. Upon conclusion of funded cases, the Company has the right to its share of revenue; whereas for purchased cases, it has the right to receive all revenue, from which a payment to the insolvent estate is made. Revenues arising from funded cases and purchased cases are considered one business segment and are considered the one principal activity of the Company. All revenues derive from continuing operations and are not seasonal in nature.

 

Realised revenue represents realised gains on investments in completed cases and derived from the following streams for the year ended 31 March 2026.

 

	31 March 2026		31 March 2025 (Restated)
	£000s		£000s
Realised Revenue arising from:
Purchased cases	27,330		28,243
Funded cases	547		1,550
	27,877		29,793

 

Unrealised gross profit is generated by fair value movements which include the increase / (decrease) in fair value of open cases, the removal of the carrying fair value of realised cases (in the period when a case is completed and recognised as realised revenue) and the addition of the fair value of new cases. See note 13.

 

 

	31 March 2026		31 March 2025
	£000s		£000s
Gross Profit on Unrealised Cases arising from:
Purchased cases	2,607		1,882
Funded cases	128		(876)
	2,735		1,006

 

 

6.   Directors and employees

Staff costs for the Company during the year:

	31 March 2026		31 March 2025
Staff costs (including directors):	£000s		£000s
Wages and salaries	4,006		3,438
Social security costs	590		454
Other pension costs and benefits	414		446
Total staff costs	5,010		4,338

 

The average monthly number of employees (including executive and non-executive directors) employed by activity was:

 

	31 March 2026		31 March 2025
	No.		No.
Directors (executive and non-executive)	5		6
Management and administration	26		23
Average headcount	31		29

 

The aggregate amount charged in the accounts for key management personnel (including employer's National Insurance contributions), being the directors of the company, were as follows:

 

Directors' emoluments:	31 March 2026		31 March 2025
	£000s		£000s
Short term employee benefits	1,085		1,602
Share based payments	1		109
	1,086		1,711

 

Directors' remuneration is detailed in the Remuneration report. The number of directors to whom retirement benefits accrued was 2 (FY25: 3). No options were exercised by directors in FY26 (FY25: no directors exercised options).

 

During the year, Steven Cooklin ceased to be a Director. The total payment for loss of office amounted to £530k, comprising £499k in lieu of notice, £25k compensation for loss of office and £6k accrued holiday. Of this amount, £364k was paid during the year, with the remaining £166k payable in instalments after the year-end.

During the year, Mark Tavener ceased to be a Director. The total payment for loss of office amounted to £74k, comprising £49k in lieu of notice and £25k compensation for loss of office.

 

	31 March 2026		31 March 2025
	£000s		£000s
Highest paid director:
Short term employee benefits	478		575
Share based payments	181		113
	659		688

 

Management consider the directors to be the key management personnel. The total share-based payment expense in the year attributable to the Board was £1k (FY25: £255k).

 

7.   Operating profit

 

Operating profit is stated after charging:

	31 March 2026		31 March 2025
	£000s		£000s
Expected credit losses	3,588		1,343
Share based payments	261		283

 

 

8.   Adjusting Items

	31 March 2026		31 March 2025
	£000s		£000s
Reorganisation and restructuring costs	966		15
Share based payment charge	261		283
Total adjusting items	1,227		298

 

Reorganisation and restructuring costs

 

During the year the Company refreshed its leadership team, with the CEO and CFO being replaced, and management made changes to operational roles across the Company to improve efficiency and decision making. The non-recurring element of the costs relating to the changes, including payment for loss of office and recruitment of Board roles, has been presented as adjusting to enable a more refined evaluation of financial performance.

 

Share-based payment charge

 

This represents the expense recognised by the Company in relation to services received from Directors and employees following the grant of share options. Share options are awarded in most years.

 

 

9.   Analysis of expenses by nature

 

Internal legal costs are included within operating expenses whereas external legal costs are either capitalised as Investments for open cases or recognised as cost of sales on completed cases.

 

The breakdown by nature of operating expenses is as follows:

 

	31 March 2026		31 March 2025
	£000s		£000s
Staff costs, including pension and healthcare costs	5,010		4,338
Expected credit losses	3,588		1,343
Professional fees	842		718
Marketing costs	340		323
Other costs, including office costs	643		741
Total operating expenses	10,423		7,463

 

Amounts payable to Gravita II in respect of the Year-end and Interim audit for FY25 and FY26 in respect of both audit and non-audit services are set out below.

	31 March 2026		31 March 2025
	£000s		£000s
Fee payable to Company's auditor for the statutory audit of the Company's financial statements	126		122
Fees payable to Company's auditor for other services:
Interim agreed upon procedures	14		13
Total	140		135

 

10.  Finance income and finance expense

 

	31 March 2026		31 March 2025
	£000s		£000s
Bank interest	7		22
Total finance income	7		22

 

	31 March 2026		31 March 2025
	£000s		£000s
Amortisation of HSBC facility set-up costs	233		16
Bank loan charges	885		1,627
Total finance expense	1,118		1,643

 

 

11.  Taxation

	31 March 2026		31 March 2025
Analysis of charge in year	£000s		£000s
Current tax charge on profits for the year	320		-
Income tax charge	320		-
Deferred tax charge	207		454
Total tax charge	527		454

 

The tax charge for the year differs from the standard rate of corporation tax in the UK of 25%. (FY25: 25%). The differences are explained below.

	31 March 2026		31 March 2025 Restated
	£000s		£000s
Profit on ordinary activities before tax	1,621		1,556
Profit on ordinary activities multiplied by the rate of corporation tax in the UK as above	405		389
Effects of:
Expenses not deductible	80		93
Deferred tax charged directly to equity	(3)		(206)
Temporary differences not recognised in the computation	5		(52)
Brought forward losses utilised in the year	(170)		(430)
Movement in temporary difference	210		660
Total taxation charge	527		454

At 31 March 2026 the Company had no unutilised losses to carry forward (FY25: £0.7m).

 

The headline rate of UK corporation tax is 25% and the deferred tax asset has been measured by reference to this rate. 

 

12.  Earnings per share

 

The basic earnings per share is calculated by dividing the profit/(loss) attributable to ordinary equity holders by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is calculated by dividing the profit/(loss) after tax by the weighted average number of shares in issue during the year, adjusted for potentially dilutive share options.

 

The following reflects the income and shares data used in the earnings per share calculation:

 

	31 March 2026		31 March 2025 Restated
	£000s			£000s
Profit for the period attributable to equity holders of the Company	1,094			1,102
Weighted average number of ordinary shares	43,840,090			43,777,359
Earnings per share	2.50p			2.52p

 

Basic Earnings Per Share is based on the profit for the year attributable to the equity holders of the Company dividend by the weighted average number of ordinary shares during the period.

 

 

		31 March 2026	31 March 2025 Restated
		£000s	£000s
Profit for the period attributable to equity holders of the Company		1,094	1,102
Diluted weighted average number of ordinary shares		44,427,454	44,490,399
Diluted earnings per share		2.46p	2.48p

 

Reconciliation of number of shares and diluted shares at year end:

		31 March 2026	31 March 2025
		£000s	£000s
Weighted average number of shares for Basic Earnings Per Share		43,840,090	43,777,359
Adjustments for calculation of Diluted Earnings Per Share:
Options over ordinary shares		587,364	713,040
Weighted average number of shares for Diluted Earnings Per Share		44,427,454	44,490,399

 

The earnings per share is diluted by options over ordinary shares, as detailed in note 21.

 

13.  Investments

 

Non-current investments and current asset investments comprise the costs incurred in bringing funded and purchased cases to the position that they have reached at the balance sheet date. In addition, where an event has occurred that causes the Directors to revalue the amount invested, a fair value adjustment is made by the Directors based on Counsel's and the Directors' opinion, which can either be positive or negative (see Note 4 on accounting estimates).

	31 March 2026		31 March 2025
	£000s		£000s
Current	35,708		30,110
Non-current	10,252		11,340
As at 31 March 2026	45,960		41,450

 

 

	31 March 2026		31 March 2025
	£000s		£000s
As at 1 April 2025	41,450		40,196
Prepaid cost additions	7,175		6,865
Realised prepaid costs	(5,400)		(6,617)
Fair value movement (net of transfers to realisations)	2,735		1,006
As at 31 March 2026	45,960		41,450

Analysis of fair value movements

 

	31 March 2026		31 March 2025
	£000s		£000s
New case investments	12,443		10,090
Increase in existing case fair value (excl. cartel cases)	2,557		1,556
Decrease in existing case fair value (excl. cartel cases)	(2,797)		(2,375)
Case completions - transferred to realisations	(4,645)		(8,245)
Cartel completions - transferred to realisations	(2,707)		-
Decrease in fair value of cartel cases	(2,116)		(20)
Fair value movement (net of transfers to realisations)	2,735		1,006

 

 

14.  Trade and other receivables          

	31 March 2026		31 March 2025 Restated
	£000s		£000s
Gross trade receivables falling due in excess of one year	12,026		11,486
Gross trade receivables falling due within one year	21,946		25,549
Prepayments	146		187
Total gross trade and other receivables	34,118		37,222

 

Allowance for expected credit losses	(9,597)		(6,364)
Total trade and other receivables	24,521		30,858

 

Trade receivables are amounts due from settled cases in the ordinary course of business. Trade receivables are recognised initially at the amount of consideration that is unconditional, unless they contain significant financing components, when they are recognised at fair value. The Company holds the trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method. Ageing of the expected credit loss allowance is included in note 25.

Trade receivables falling due in excess of one year total £12.0m (FY25: £11.5m) and are measured on a discounted basis. The gross undiscounted value of these receivables is £12.8m (FY25: £12.2m).

Movements in the allowance for expected credit losses (ECL) and specific provisions are as follows:

	31 March 2026		31 March 2025
	£000s		£000s
At 1 April 2025	6,364		6,345
Increase in specific provisions	6,563		2,246
Amounts written off	(2,963)		(1,267)
Decrease in specific provisions no longer required	(435)		(443)
Net remeasurement on ECL	68		(517)
As at 31 March 2026	9,597		6,364

 

The Company applies the simplified approach in providing for expected credit losses under IFRS 9 which allows the use of the lifetime expected credit loss provision for all trade receivables. In measuring the expected credit losses, trade receivables have been stratified by settlement type and days past due. Expected lifetime credit loss rates are based on the payment profiles of completions from April 2022 to January 2026.

 

15.  Cash and cash equivalents

	31 March 2026		31 March 2025
	£000s		£000s
Cash at bank and in hand	1,247		692

 

All bank balances are denominated in pounds sterling.

 

16.  Trade and other payables

1.