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.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
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.
Latest Videos FromMoneyWeek
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
