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Litigation Capital Management
(LSE:LIT)
Select Model
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Rating:43Neutral
Price Target:
1.50 p
▼(-34.78% Downside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by weak financial performance (sharp revenue decline, negative profitability, and negative operating/free cash flow) and a clearly bearish price trend (below all major moving averages). Valuation does not provide offsetting support due to a negative P/E and no dividend yield data.
Positive Factors
Outcome‑based non‑recourse model
LIT's core non‑recourse, outcome‑based funding aligns risk and reward: capital is deployed only for cases with merit and returns are tied to recoveries. Over months this drives incentive‑aligned underwriting, potential for skewed upside per win and disciplined capital allocation.
Negative Factors
Sharp revenue decline
A near‑60% revenue drop signals materially weaker deal realizations or exits. For a litigation funder, fewer or smaller case outcomes compresses distributable income and performance fees, reducing reinvestment capacity and impairing multi‑period return generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Outcome‑based non‑recourse model
LIT's core non‑recourse, outcome‑based funding aligns risk and reward: capital is deployed only for cases with merit and returns are tied to recoveries. Over months this drives incentive‑aligned underwriting, potential for skewed upside per win and disciplined capital allocation.
Read all positive factors
Litigation Capital Management (LIT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.28M
Dividend YieldN/A
Average Volume (3M)2.73M
Price to Earnings (P/E)―
Beta (1Y)-0.07
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)0.02
Revenue Forecast (FY)£36.50M
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 by deploying capital into legal claims (and managing capital on behalf of third parties) in exchange for an agreed entitlement to proceeds if a case resolves successfully (via settlement or judgment). Its ...
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
Neutral
2.30
Price Trends
2.11
Negative
3.25
Negative
6.29
Negative
Market Momentum
-0.11
Positive
47.93
Neutral
60.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LIT, the sentiment is Neutral. The current price of 2.3 is above the 20-day moving average (MA) of 2.20, above the 50-day MA of 2.11, and below the 200-day MA of 6.29, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 60.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | £48.57M | 7.93 | 8.28% | ― | 5.19% | 14.53% | |
74 Outperform | £115.80M | 7.99 | 12.38% | ― | 18.38% | 13.20% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | £216.00M | 6.23 | 33.54% | 3.95% | 34.56% | 89.25% | |
58 Neutral | £675.21M | 16.49 | 21.54% | ― | 37.60% | 2766.67% | |
52 Neutral | £71.22M | -15.51 | -5.71% | 8.48% | -134.33% | -170.66% | |
43 Neutral | £2.28M | -0.03 | -58.13% | ― | -134.31% | -5555.17% |
* Financial Sector Average
GB:LIT
Litigation Capital Management
2.11
-36.10
-94.49%
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245.50
96.70
64.99%
GB:DFCH
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71.00
25.50
56.04%
GB:BFSP
Blackfinch Spring VCT Plc
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-5.84%
GB:ASAI
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235.00
112.94
92.52%
Litigation Capital Management Corporate Events
Business Operations and StrategyPrivate Placements and Financing
LCM Wins Extension to Debt Covenant Waiver as Strategic Review Advances
Positive
Jul 31, 2026
Litigation Capital Management Limited has secured a one‑month extension of its debt covenant waiver from Northleaf, pushing the expiry date from 31 July 2026 to 31 August 2026 while maintaining a 2.00% per annum increase in the loan’s ...
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
LCM Writes Off £0.8m After Competition Claim Appeal Bid Fails
Negative
Jul 3, 2026
Litigation Capital Management has disclosed that a funded party in one of its competition claims has been denied permission to appeal an adverse judgment, effectively ending the case. As a result, the company will write off the investment, which h...
Business Operations and StrategyPrivate Placements and Financing
LCM Secures Extension of Debt Covenant Waiver Amid Ongoing Strategic Review
Positive
Jun 30, 2026
Litigation Capital Management has secured an extension of its debt covenant waiver from Northleaf, pushing the expiry date from 30 June 2026 to 31 July 2026. During the extended waiver period, interest on the loan will remain 2.00% higher per annu...
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. ...
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.