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Litigation Capital Management
(LSE:LIT)
Select Model
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Rating:41Neutral
Price Target:
0.31 p
▼(-82.11% Downside)
Action:Upgraded
Date:10/09/26
The score is driven primarily by deteriorating financial fundamentals—sharp revenue decline, large losses, sustained cash burn, and negative shareholder equity. Technicals also weigh heavily, with a pronounced downtrend across moving averages and negative MACD despite oversold readings. Valuation offers limited support due to negative earnings and no dividend yield data.
Positive Factors
Outcome-based litigation finance model
The outcome-based model gives LCM access to potentially substantial returns without relying on conventional interest income alone. Successful case selection and recoveries can create attractive investment economics, while the model remains scalable across a portfolio of legal matters.
Negative Factors
Sharp revenue decline and earnings deterioration
The latest revenue contraction and large loss indicate that realised case outcomes and portfolio earnings are currently insufficient to support stable operating performance. Continued volatility would make forecasting harder, reduce reinvestment capacity, and weaken confidence in near-term earnings durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Outcome-based litigation finance model
The outcome-based model gives LCM access to potentially substantial returns without relying on conventional interest income alone. Successful case selection and recoveries can create attractive investment economics, while the model remains scalable across a portfolio of legal matters.
Read all positive factors
Litigation Capital Management (LIT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£427.98K
Dividend Yield1.21%
Average Volume (3M)1.59M
Price to Earnings (P/E)―
Beta (1Y)0.40
Revenue Growth-335.68%
EPS Growth-130.95%
CountryUK
Employees6
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-1.59
Shares Outstanding114,281,296
10 Day Avg. Volume4,426,877
30 Day Avg. Volume1,586,468
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.06
Price to Sales (P/S)-0.03
P/FCF Ratio-0.03
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 dispute-related matters and earning returns when those matters resolve successfully. Its core revenue model is contingent and outcome-based: it funds some or all ...
Litigation Capital Management Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
22
Negative
Cash Flow
24
Negative
| Breakdown | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | -116.04M | -163.12M | 12.44M | 184.74M | 103.85M |
| Gross Profit | -151.95M | -180.65M | -47.69M | 65.44M | 59.84M |
| EBITDA | -163.91M | -47.16M | 25.21M | 168.03M | 89.97M |
| Net Income | -168.71M | -36.50M | 12.71M | 31.48M | 34.61M |
Balance Sheet | |||||
| Total Assets | 276.14M | 445.56M | 591.80M | 548.90M | 407.06M |
| Cash, Cash Equivalents and Short-Term Investments | 12.65M | 8.82M | 533.33M | 495.87M | 346.94M |
| Total Debt | 126.10M | 37.18M | 61.92M | 68.98M | 211.59M |
| Total Liabilities | 330.04M | 331.19M | 402.86M | 365.44M | 258.13M |
| Stockholders Equity | -53.90M | 54.70M | 188.94M | 183.47M | 148.93M |
Cash Flow | |||||
| Free Cash Flow | -97.07M | -80.46M | 19.16M | 84.50M | -55.26M |
| Operating Cash Flow | -97.07M | -43.51M | 19.20M | 84.59M | -55.22M |
| Investing Cash Flow | 111.97K | -103.63K | -31.00K | -198.00K | -335.00K |
| Financing Cash Flow | 88.87M | 18.17M | -55.58M | -32.61M | 51.86M |
Litigation Capital Management Technical Analysis
Negative
1.71
Price Trends
1.58
Negative
1.95
Negative
4.56
Negative
Market Momentum
-0.43
Positive
26.81
Positive
16.50
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 1.71 is above the 20-day moving average (MA) of 1.18, above the 50-day MA of 1.58, and below the 200-day MA of 4.56, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 26.81 is Positive, neither overbought nor oversold. The STOCH value of 16.50 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | £54.49M | 8.90 | 8.28% | 5.58% | 5.19% | 14.53% | |
74 Outperform | £119.39M | 6.53 | 13.97% | ― | 22.63% | 33.09% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £240.00M | 4.23 | 41.54% | 5.15% | 25.27% | 69.00% | |
61 Neutral | £534.54M | 9.28 | 26.71% | ― | 52.96% | 242.50% | |
50 Neutral | £71.50M | -14.44 | -6.08% | 5.73% | -184.81% | -386.87% | |
41 Neutral | £427.98K | >-0.01 | 680.45% | 1.21% | -335.68% | -130.95% |
* Financial Sector Average
GB:LIT
Litigation Capital Management
0.31
-9.40
-96.78%
GB:TIME
Time Finance plc
58.90
7.40
14.37%
GB:FCH
Funding Circle Holdings
193.20
65.00
50.70%
GB:DFCH
Distribution Finance Capital Holdings Plc
73.00
22.00
43.14%
GB:BFSP
Blackfinch Spring VCT Plc
82.00
-5.09
-5.84%
GB:ASAI
ASA International Group PLC
240.00
58.30
32.09%
Litigation Capital Management Corporate Events
Business Operations and StrategyLegal Proceedings
LCM Faces Adverse Australian Insolvency Ruling on Self-Funded Case
Negative
Oct 8, 2026
Litigation Capital Management Limited reported that an Australian court has delivered an adverse judgment in an insolvency claim it funded, resulting in an unsuccessful outcome. The case was financed entirely from LCM’s balance sheet with A$...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Litigation Capital Management Slips into Run-Off After Heavy FY26 Losses
Negative
Sep 30, 2026
Litigation Capital Management reported a sharp deterioration in performance for the year to 30 June 2026, posting a net loss after tax of A$165.7 million and moving from net assets of A$114.4 million to net liabilities of A$53.6 million. The downt...
Business Operations and StrategyPrivate Placements and Financing
Litigation Capital Management Secures Extension to Northleaf Debt Covenant Waiver
Positive
Sep 1, 2026
Litigation Capital Management Limited has secured an extension of its debt covenant waiver from lender Northleaf, pushing the expiry date from 31 August 2026 to 30 September 2026. The extended waiver maintains a 2.00% per annum increase in loan in...
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 ...
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.