Manolete Partners – is it time to jump back into this insolvency litigation financing company, we almost trebled last time up to 620p, shares now 93p, brokers TP 172p

Mark Watson-Mitchell
Jun 27
4 min read

27.06.2025

Yesterday’s Finals announcement from Manolete Partners (LON:MANO) sees me now returning to suggest investors have a new opportunity to make good profits with this group.

I featured the company shortly after it went public with a Profile on 12th February 2019 at 230p, with a Target Price of 300p.

Within two weeks, it was up to 330p when I profiled it again.

By May 2020 the group’s shares hit 617p, since when they have been on a gradually declining slope to a 72p Low in January this year.

Now at 93p, after yesterday’s results are out of the way, I take the view that risk-tolerant investors should be jumping back into the company’s equity.

The Business

Manolete Partners, which is the UK’s leading insolvency litigation financing company was founded in 2009 by its CEO, Steven Cooklin.

Its principal activity is that of acquiring and funding insolvency litigation cases.

Manolete has invested in over 1600 UK insolvency litigation cases and completed over 1200 of them.

It works with insolvency solicitor firms and barrister chambers in the UK insolvency market.

The company finances the work of the insolvency practitioner and their lawyers to make optimal recoveries for the creditor estates and takes on all the risk.

By working in a three-way partnership with insolvency practitioners and their lawyers they look to ensure meritorious claims are pursued and resolved.

Manolete has worked with over 200 IP firms and their chosen legal advisers, often on multiple cases.

Manolete is different from other litigation funders because cases are completed very quickly – the average duration is less than 12 months.

The large majority are settled long before trial - minimising costs and optimising returns.

Management Comment

CEO Steven Cooklin stated that:

"We are delighted to report our highest ever revenues of £30.5m for FY25 and a strong increase in profitability, well ahead of market forecasts.

Cash generation has also been particularly impressive with a 45% increase in gross cash receipts for the year.

In FY25 we also recorded lifetime highs in the number of new case referrals from Manolete's nationwide proprietary referral network.

FY26 has got off to a strong start with new case signings already 27% higher than the whole of Q1 FY25 and further concrete evidence of larger average case sizes feeding into our portfolio of more recent case signings.

The continued strong tailwinds of challenging market conditions faced by many UK corporates provide the Board with optimism for further good progress in the new financial year."

Outlook and Current Trading

“Our optimism in the Company's future performance is rooted in our resilient team of lawyers who have attracted a record number of referrals.

We also have a record number of live cases with a fair value of £41.5m (FY24: £40.2m).

The company's increased revenue is based on cases signed which in turn is derived from case referrals which were up nearly a quarter on last year.

This measure shows that the fundamental strengths of the business are as strong as they have ever been.

Recent figures published by Companies House showed the overall rate of liquidations, including both voluntary and insolvencies, rose to a record high in 2024/5.

So, we remain most encouraged about the continued favourable market conditions which gives every indication of a strong flow of higher value insolvency cases to come.

We are confident we have invested in a portfolio of cases which will produce attractive returns for the company.

There is strong and continuing evidence that the average size of cases is now trending back to the significantly higher level that the company enjoyed prior to the Covid crisis.

The Board believes that the business is now well-positioned to take advantage of the strong tailwinds that have started to drive its resumed growth trajectory.

The company has made a good start to FY26 and we look forward to a promising future.”

The Equity

There are some 43.76m shares in issue.

Larger holders include Jon Moulton (26.53%), Mithaq Capital (17.55%), Michael Faulkner (11.61%), Steven Cooklin (9.92%), Cooklin Family Trusts (5.14%) and Interactive Brokers (3.93%).

Broker’s View

Analysts Portia Patel and Justin Bates, at Canaccord Genuity Capital Markets rate the group’s shares as a Buy, with a Target Price of 172p.

For the year to end-March 2026 the analysts look for realised revenues to rise to £31.1m (£29.5m), with pre-tax profits rising nearly tenfold to £2.8m (£0.3m), with earnings per share of 4.7p (0.6p), while lifting net asset per share to 99.6p (94.7p).

For the 2027 year, they see £35.4m revenue, £4.0m profit and 6.8p per share earnings, with a 106.5p NAV.

Their projections for 2028 are for £43.7m revenues, £7.1m profits, 12.0p earnings and a NAV of 118.7p per share.

My View

It is an excellent example of not chasing a company’s shares just because others are overpaying to get aboard – realism always sets in when the following figures do not match heady valuations.

Such as Manolete from 230p to 617p then back down to 72p.

But now at 93p I see them getting back on the upward climb, accordingly I now set a Target Price of 116p.