Litigation Capital Management Limited (GB:LIT)
LSE:LIT
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Litigation Capital Management
(LSE:LIT)
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Rating:43Neutral
Price Target:
4.00 p
▼(-58.03% Downside)
Action:ReiteratedDate:04/04/26
The score is weighed down primarily by weak financial performance (steep revenue drop, negative profitability, rising leverage, and negative operating/free cash flow). Technicals add further pressure with a strongly bearish trend and negative momentum. Valuation provides limited offset because the negative P/E reduces the usefulness of traditional valuation signals and no dividend yield data is available.
Positive Factors
Asset manager fee income
LIT's asset-management arm generates management and performance fees from third-party capital, creating a recurring, less outcome-dependent revenue stream than pure balance-sheet funding. Over months this diversifies cash flow, supports fee-based scalability and helps stabilize revenues as AUM grows.
Negative Factors
Severe revenue decline and negative gross profit
A near-60% revenue drop and negative gross profit signal underlying issues in case outcomes, pricing or portfolio composition. Such substantial deterioration undermines the firm's ability to cover fixed costs and invest in sourcing, reducing resilience and making recovery dependent on future case win rates and timing.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset manager fee income
LIT's asset-management arm generates management and performance fees from third-party capital, creating a recurring, less outcome-dependent revenue stream than pure balance-sheet funding. Over months this diversifies cash flow, supports fee-based scalability and helps stabilize revenues as AUM grows.
Read all positive factors
Litigation Capital Management (LIT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.46M
Dividend YieldN/A
Average Volume (3M)2.73M
Price to Earnings (P/E)―
Beta (1Y)-0.15
Revenue Growth-44.60%
EPS Growth-658.40%
CountryUK
Employees6
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-0.55
Shares Outstanding114,281,296
10 Day Avg. Volume1,163,821
30 Day Avg. Volume2,729,150
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.10
Price to Sales (P/S)-0.37
P/FCF Ratio-0.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Litigation Capital Management Business Overview & Revenue Model
Company Description
Litigation Capital Management (LIT) is a leading global provider of litigation financing solutions, specializing in funding legal proceedings across various sectors, including commercial litigation, arbitration, and class actions. The company focu...
How the Company Makes Money
Litigation Capital Management makes money primarily by financing legal claims and earning a return that is contingent on successful case outcomes. Its core revenue stream is proceeds from funded matters: when a case resolves (via settlement or cou...
Litigation Capital Management Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
40
Negative
| Breakdown | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | -163.12M | 12.44M | 184.74M | 103.85M | 37.06M |
| Gross Profit | -180.65M | -47.69M | 65.44M | 59.84M | 26.62M |
| EBITDA | -47.21M | 25.21M | 168.03M | 89.97M | 15.76M |
| Net Income | -36.50M | 12.71M | 31.48M | 34.61M | 8.86M |
Balance Sheet | |||||
| Total Assets | 445.56M | 591.80M | 548.90M | 407.06M | 199.61M |
| Cash, Cash Equivalents and Short-Term Investments | 8.82M | 533.33M | 495.87M | 346.94M | 49.74M |
| Total Debt | 37.18M | 61.92M | 68.98M | 211.59M | 113.29M |
| Total Liabilities | 331.19M | 402.86M | 365.44M | 258.13M | 110.72M |
| Stockholders Equity | 54.70M | 188.94M | 183.47M | 148.93M | 88.87M |
Cash Flow | |||||
| Free Cash Flow | -80.46M | 19.16M | 84.50M | -55.26M | -56.56M |
| Operating Cash Flow | -43.51M | 19.20M | 84.59M | -55.22M | -56.54M |
| Investing Cash Flow | -103.63K | -31.00K | -198.00K | -335.00K | -70.00K |
| Financing Cash Flow | 18.17M | -55.58M | -32.61M | 51.86M | 74.14M |
Litigation Capital Management Technical Analysis
Negative
9.53
Price Trends
8.34
Negative
9.02
Negative
17.15
Negative
Market Momentum
-1.00
Positive
21.63
Positive
16.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LIT, the sentiment is Negative. The current price of 9.53 is above the 20-day moving average (MA) of 6.93, above the 50-day MA of 8.34, and below the 200-day MA of 17.15, indicating a bearish trend. The MACD of -1.00 indicates Positive momentum. The RSI at 21.63 is Positive, neither overbought nor oversold. The STOCH value of 16.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:LIT.
Litigation Capital Management Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £38.86M | 3.46 | 8.28% | ― | 11.71% | 31.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £91.07M | 5.72 | 12.38% | ― | 17.35% | 91.55% | |
61 Neutral | £187.00M | 2.44 | -965.56% | 4.74% | ― | ― | |
60 Neutral | ― | -11.52 | 0.93% | 8.48% | ― | ― | |
55 Neutral | £380.25M | 8.64 | 21.54% | ― | 7.90% | ― | |
43 Neutral | £4.46M | -1.65 | -58.13% | ― | -44.60% | -658.40% |
* Financial Sector Average
GB:LIT
Litigation Capital Management
3.90
-43.60
-91.79%
GB:TIME
Time Finance plc
42.00
-3.50
-7.69%
GB:FCH
Funding Circle Holdings
132.40
41.40
45.49%
GB:DFCH
Distribution Finance Capital Holdings Plc
55.50
23.00
70.77%
GB:BFSP
Blackfinch Spring VCT Plc
88.50
-5.30
-5.65%
GB:ASAI
ASA International Group PLC
187.00
110.90
145.73%
Litigation Capital Management Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
LCM plunges to heavy loss as case setbacks trigger strategic review
Negative
Mar 31, 2026
Litigation Capital Management reported its most challenging half year to 31 December 2025, as a series of large case losses produced a statutory post-tax loss of $107.8m and an operating loss before tax of $111.7m, sharply worse than the prior per...
Business Operations and StrategyFinancial Disclosures
Litigation Capital Management Sets Date for Half-Year Results and Investor Presentation
Neutral
Mar 25, 2026
Litigation Capital Management Limited will release its half-year results for the six months ended 31 December 2025 on 31 March 2026. The announcement will outline the company’s interim financial performance and may offer insight into the hea...
Business Operations and StrategyLegal Proceedings
Litigation Capital Management Faces Adverse Court Ruling on Funded Australian Case
Negative
Mar 17, 2026
Litigation Capital Management has disclosed that an Australian court has ruled against the claimant in a commercial case that the firm funded, reversing expectations after it had flagged an imminent judgment on this small investment earlier in Mar...
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
LCM Secures Key High Court Win in Funded Trademark Dispute
Positive
Mar 11, 2026
Litigation Capital Management has reported a significant legal victory for a trademark case it funded on behalf of Sydney designer Katie Perry against singer Katy Perry and related entities, after the High Court of Australia upheld the designer...
Business Operations and StrategyPrivate Placements and Financing
LCM Wins Extension of Debt Covenant Waiver as Strategic Review Continues
Positive
Mar 2, 2026
Litigation Capital Management has secured an extension of its debt covenant waiver from lender Northleaf, pushing the expiry from the end of February 2026 to 15 April 2026. During this extended waiver period, the interest rate on the loan remains ...
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Litigation Capital Management Gains Key Win in Poland Arbitration Challenge
Positive
Jan 12, 2026
Litigation Capital Management Limited reported a significant positive development in the high-profile international arbitration it funded against the Republic of Poland, after a Singapore court fully rejected Poland’s application to set asid...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.