Manolete Partners (MANO ) told investors that it has performed well and in line with the Board’s expectations in 2H22 despite the use of various “Temporary Measures” contained in the Corporate Insolvency and Governance Act 2020 that were active during this period.
The “Temporary Measures” were implemented by the UK Government back in June 2020 in reaction to the COVID-19 pandemic. The Group outlined that these measures largely ended, effective from 1 October 2021 as well as other business support schemes, including furlough.
“The Manolete business has performed admirably despite the extraordinary temporary measures instituted by the UK Government designed to suppress UK insolvencies and to support UK employment levels,” Steven Cooklin, CEO of Manolete, told investors today.
During the six month period to 30 September 2021, Manolete, a specialist insolvency litigation financing company, completed 64 cases, 23% higher than the 52 case completions in 1H21.
Overall, those 64 cases were settled for an aggregate settlement value of £7.9m it reported.
The average duration of the cases from the date of signing the investment deal to the date the case was legally settled was 11 months, which is inline with Manolete’s long-term average.
In addition, the return on investment of those 64 cases was 154% and represented a money multiple of 2.57x (meaning every £1 Manolete invested into those cases returns £2.57).
During the trading period, a total of 255 new UK insolvency case enquiries were received by Manolete, which was 5% higher than the previous six months but 24% below 1H21.
The 1H21 period was affected far less by the UK Government’s Temporary Measures, Manolete noted.
In the six months to 30 September 2021, a total of 78 new case investments were made, 11% lower than the previous six months and 29% below 1H21, respectively. Manolete said it believes this figure underlines the firm’s ‘high standards of rigorous case assessment’.
The Company reported that £4.3m of cash was received from previously completed cases.
During September 2021 alone, 50 new UK insolvency case enquiries were received, the highest level the Company has experienced since July 2020. As a result,
Manolete Partners said it has started the second half of its trading year with 262 live cases in progress.
As at 30 September 2021, Manolete Partners had drawn down £11m from its £25m three-year Revolving Credit Facility with HSBC. In addition, Manolete’s financial statements for the six months ended 30 September 2021 are expected to be reported by the Company next month.
CEO, Steven Cooklin said the Company has also witnessed a strong recovery in its numbers of new signed cases at 15 during September 2021, 50% higher than the previous month.
He added, “Even with this sharp upturn these KPIs are still far below the level we were experiencing before the Government instigated the necessary economic support measures so we anticipate further strong growth in the number of signed cases in the months ahead.”
With a return to largely normal UK insolvency processes from 1 October 2021, Manolete is well positioned to benefit from that and the likely, widely predicted, increase in insolvency appointments as the economy realigns from the effects of the pandemic”.
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