Juridica, which provides capital for corporate legal claims to both businesses and the legal markets, has unveiled plans to return cash to its shareholders.
The company is rolling in cash after four separate cases in its maturing portfolio generated gross proceeds of £23m from partial settlements.
The proceeds, the vast majority of which will be received at the year end, represent realised gain on Juridica's investments and not a return of capital.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Juridica said that it will consider the possibility of an interim dividend at its September meeting, saying it intends to pay-out a significant part of the proceeds, once received, as dividends.
The settlements means the company's lifetimes gross proceeds total £53m, of which it has returned £16m to shareholders (£11m in dividends and $6.0m through a share buy-back programme).
Richard Fields, Chairman and Chief Executive of Juridica, said: "When we first developed this market, we committed Juridica to invest in bigger cases with a desire to generate significant returns for our investors over the long term. We are thrilled to see the results we are reporting today and truly hope the investors who have been with us throughout this process feel the same way."
Lord Brennan, the company's Chairman, added: "I am pleased to report that we are starting to see the benefits of some of our investments in larger cases, which often have a longer time to completion but also can generate larger returns. The cash results announced today demonstrate the strength of our investment approach and are equivalent to 20% of the total capital raised by the company."
The share price climbed 4.85% to 81p by 09:52.
NR
-
Do you qualify for the Winter Fuel Payment if you live abroad?The Winter Fuel Payment will be means tested for expats living in Europe, in line with the new rules impacting those in the UK. But a quirk in the system means not all countries are eligible.
-
What the Employment Rights Bill means for your jobNew workplace reforms are set to give employees new rights to benefits and flexible working
