Juridica first half losses increase but cash returns fuel dividends

19th Aug 2013 08:45

Juridica Investments reported a loss for the first half of the year but realised a sizeable chunk of cash from court settlements. The US business-to-business legal claims investor saw net asset value per share decrease 1.4% to $2.17 due to a total comprehensive loss of $3m from fund operating expenses exceeding gains from the value of investments, compared to a $0.14m loss in the comparable period.AIM-listed Juridica realised cash proceeds from partial settlements with multiple defendants worth $17.5m during the six months to end June, plus a further $12.5m after the period end. These $30m cash proceeds will fund a dividend of 10p per share payable on January 15th 2014. Chairman Lord Brennan QC said the company has made two supplemental investments in existing cases, on "highly favourable terms", that were beyond initial funding commitments, but should increase the likelihood of greater potential return to the company. He added that Juridica believed several investments were likely to be completed over the next twelve months with several additional investments generating partial settlements and the board expects "significant returns" from its investment portfolio during the remainder of 2013, through 2014 and beyond. "This belief is based on the manager's review of presently scheduled trial dates, expected final decisions following trial, and possible settlements in multiple cases that are in an advanced stage of development."Shares in Juridica were up 0.9% to 144p at 09:09 on Monday.OH