CONTINUED STRONG RETURNS IN 2013; DIVIDEND OF 14.0 PENCE PER SHARE; PORTFOLIO MATURING

Juridica (AIM: JIL), a leading provider of strategic capital for corporate legal claims to both businesses and the legal markets, announces its audited financial results for the year ended 31 December 2013.

Financial highlights

  • Gross cash proceeds received during 2013 of US$37.2 million (2012: US$38.4 million)
  • Dividends totalling US$25.7 million (14p per share) paid to shareholders on 15 January 2014
  • Dividends paid to shareholders since inception total US$64.3 million (38.6p per share)
  • Net Asset Value at 31 December 2013 of US$223.6 million, which includes the Company's core investment portfolio with a current fair value of US$189.4 million
  • Net Asset Value per share US$2.02 / £1.22* (2012: US$2.20 / £1.33*)
  • Total comprehensive income for 2013 of US$5.1 million (2012: US$37.6 million)
  • Fully diluted earnings per share of 4.85c / 2.91p* (2012: 35.38c / 21.37p*)

* Financial highlights exchange rate is £1.00 = US$1.657 as of 31 December 2013

Operating highlights

  • Receipt of US$37.2 million in cash proceeds from four investments comprising one final settlement and three partial settlements
  • Several investments have matured to where important legal events are scheduled during the upcoming 12 to 18 months, any of which could result in completion of the investment
  • Investment of US$2.0 million for a 7.8% equity interest in ipCreate, Inc., a leading intellectual property creation, acquisition and monetisation company. This investment will enhance the Company's capability to invest in intellectual property opportunities that are structured to reduce overall risk with enhanced return potential
  • Supplemental investments in four cases totalling US$2.9 million

Outlook for 2014

The Company's antitrust and completion portfolio, patent portfolio, and commercial portfolio are all expected to have significant activity during 2014 and 2015.

Based on scheduled trial dates and expected hearing and/or trial dates, the Manager believes the following cases have the potential to produce significant cash to the Company in 2014:

  • Case 1208-A, which is part of the significant investment the Company has made in its antitrust and competition portfolio, is scheduled for trial at the end of Q2 2014. Liability has been won through all appeals and only damages are being decided by a jury at this stage. The case could potentially result in cash returns through settlement to the Company in excess of 15% of the current NAV. Claimed damages are in excess of US$1.0 billion. The Company's Investment Manager expects any settlement to be less than claimed damages
  • Case 5208-E is scheduled for trial in Q2 of 2014 and has one remaining defendant. This case is also part of the antitrust and competition portfolio
  • Case 5009-S is expected to be tried during 2014. This case is part of the Company's commercial portfolio and claimed damages are in excess of US$500 million. The Company's interest in any settlement is 24% or more
  • Case 8008-L, as previously announced, has an aspect of its damages claim on appeal. The appeal is expected to be heard during the second half of 2014 and settlement could occur at any time thereafter. The case has already produced cash returns to the Company of approximately US$69 million

The Company expects to make several investments in medium to large sized patent portfolios during 2014.

Commenting on the results, Lord Brennan QC, Chairman of Juridica, said: "Our investments have continued to mature during the year, enabling us to deliver dividends of 14p per share. We have already provided cash returns to shareholders in the form of dividends that equal approximately 62% of our net funding. With the continued maturation of our existing portfolio and with our pipeline of potential investments, we anticipate significant returns from the investment portfolio over the next 12 to 18 months and beyond. The Board therefore looks to the future with confidence."

Investment results since the Company's inception

  • The Company has seen 10 investments come to completion (nine producing cash profits and one producing a modest cash loss) with settlements in the underlying cases totalling US$44.4 million in gross proceeds, representing a blended internal rate of return of approximately 66.7% (as calculated from date of investment to date of proceed return)
  • Six cases, which are multi-defendant in nature, had partial settlements or expense recovery, providing for gross proceeds of approximately US$80.4 million

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