Litigation Capital Management Limited (GB:LIT)
LSE:LIT
Want to see GB:LIT full AI Analyst Report?
Top Page
Litigation Capital Management
(LSE:LIT)
Select Model
Select Model
Rating:45Neutral
Price Target:
2.00 p
▼(-79.01% Downside)
Action:Reiterated
Date:06/03/26
Overall score is pressured primarily by weak financial performance (major revenue/profitability deterioration and negative cash flows), reinforced by bearish technicals with the stock trading well below key moving averages. Valuation provides limited offset because the negative P/E and missing dividend yield reduce interpretability.
Positive Factors
Diversified litigation finance business model
LIT earns both contingent proceeds from funded matters and fee income as an asset manager. This dual revenue design creates durable income sources: case recoveries when wins occur and recurring management/performance fees from third‑party capital, reducing single-stream dependency.
Negative Factors
Severe recent revenue decline
A near-60% revenue drop and multi-period negative revenue growth signal weakening portfolio performance or reduced deployment ability. For a litigation funder, sustained revenue decline shrinks the fee base, undermines reinvestment capacity and long-term ability to generate scale economies.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified litigation finance business model
LIT earns both contingent proceeds from funded matters and fee income as an asset manager. This dual revenue design creates durable income sources: case recoveries when wins occur and recurring management/performance fees from third‑party capital, reducing single-stream dependency.
Read all positive factors
Litigation Capital Management (LIT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.63M
Dividend YieldN/A
Average Volume (3M)2.73M
Price to Earnings (P/E)―
Beta (1Y)0.05
Revenue Growth-134.31%
EPS Growth-5555.17%
CountryUK
Employees6
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-1.34
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 Limited, active in Australia and the United Kingdom, specializes in providing financial backing and risk mitigation strategies for legal disputes. Their services cover a wide spectrum of cases, from individual lawsuit...
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 | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | -214.42M | -163.12M | 12.44M | 184.74M | 103.85M | 37.06M |
| Gross Profit | -256.05M | -180.65M | -47.69M | 65.44M | 59.84M | 26.62M |
| EBITDA | -165.38M | -47.21M | 25.21M | 168.03M | 89.97M | 15.76M |
| Net Income | -170.89M | -36.50M | 12.71M | 31.48M | 34.61M | 8.86M |
Balance Sheet | ||||||
| Total Assets | 336.94M | 445.56M | 591.80M | 548.90M | 407.06M | 199.61M |
| Cash, Cash Equivalents and Short-Term Investments | 23.59M | 8.82M | 533.33M | 495.87M | 346.94M | 49.74M |
| Total Debt | 93.76M | 37.18M | 61.92M | 68.98M | 211.59M | 113.29M |
| Total Liabilities | 331.33M | 331.19M | 402.86M | 365.44M | 258.13M | 110.72M |
| Stockholders Equity | 5.61M | 54.70M | 188.94M | 183.47M | 148.93M | 88.87M |
Cash Flow | ||||||
| Free Cash Flow | -96.30M | -80.46M | 19.16M | 84.50M | -55.26M | -56.56M |
| Operating Cash Flow | -96.29M | -43.51M | 19.20M | 84.59M | -55.22M | -56.54M |
| Investing Cash Flow | 5.75K | -103.63K | -31.00K | -198.00K | -335.00K | -70.00K |
| Financing Cash Flow | 72.93M | 18.17M | -55.58M | -32.61M | 51.86M | 74.14M |
Litigation Capital Management Technical Analysis
Negative
9.53
Price Trends
3.78
Negative
6.06
Negative
10.40
Negative
Market Momentum
-0.52
Positive
25.23
Positive
37.90
Neutral
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 3.09, above the 50-day MA of 3.78, and below the 200-day MA of 10.40, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 25.23 is Positive, neither overbought nor oversold. The STOCH value of 37.90 is Neutral, 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 | £44.41M | 7.17 | 8.28% | ― | 5.19% | 14.53% | |
68 Neutral | £227.00M | 6.03 | 33.54% | 4.74% | 34.56% | 89.25% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £92.71M | 6.12 | 12.38% | ― | 18.38% | 13.20% | |
55 Neutral | £410.66M | 9.28 | 21.54% | ― | 37.60% | 2766.67% | |
46 Neutral | £74.46M | -16.84 | -5.71% | 8.48% | -134.33% | -170.66% | |
45 Neutral | £2.63M | -0.02 | -58.13% | ― | -134.31% | -5555.17% |
* Financial Sector Average
GB:LIT
Litigation Capital Management
2.10
-42.65
-95.31%
GB:TIME
Time Finance plc
47.50
-11.30
-19.22%
GB:FCH
Funding Circle Holdings
141.20
20.20
16.69%
GB:DFCH
Distribution Finance Capital Holdings Plc
56.50
16.50
41.25%
GB:BFSP
Blackfinch Spring VCT Plc
85.00
-6.15
-6.75%
GB:ASAI
ASA International Group PLC
230.00
92.26
66.98%
Litigation Capital Management Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
LCM Flags Case Write‑downs as Lender Extends Covenant Waiver
Negative
Jun 1, 2026
Litigation Capital Management has secured a one‑month extension, to 30 June 2026, of its debt covenant waiver from lender Northleaf, with the loan’s interest margin remaining 2 percentage points higher but without an extra waiver fee. ...
Business Operations and StrategyPrivate Placements and Financing
LCM Secures Extension of Debt Covenant Waiver During Ongoing Strategic Review
Positive
Apr 15, 2026
Litigation Capital Management has secured an extension of its debt covenant waiver from lender Northleaf, moving the expiry from 15 April 2026 to 30 May 2026. During this extended period, the loan interest will remain 2 percentage points higher pe...
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...
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.