Juridica, a leading provider of capital to the law market, today announces its financial results for the six months to 30 June 2011.

Financial highlights and portfolio valuation

• Net Asset Value up 8.4% to US$2.0141 per share compared to US$1.8578 at 31 December 2010
• Total income of US$16.1 million (2010: US$5.2 million loss)
• Proceeds from investments of US$4.9 million
• Total cash profit of US$2.3 million
• As at 30 June 2011, the Company has invested or committed approximately US$132.1 million in 22 cases across 17 investments (2010: US$127 million).

During the first half of 2011, the Company’s Investment Manager, Juridica Capital Management Limited (‘JCML’) realised a successful conclusion to one of its investments and saw several other investments advance toward their concluding phase. Although the holding period for the Company’s investments are longer than expected, JCML believes the settlement value of many of the underlying cases should increase.

Operational highlights

• Since 31 December 2010 the Company has invested US$4.2 million in one additional case involving numerous claims including breach of fiduciary duty, misappropriation of trade secrets, and interference with business opportunity. A decision is expected by 31 December 2011.
• Two patent cases received favourable Markman rulings, one of which has generated several settlements from the defendant group.
• Two cases in the Company’s antitrust portfolio made further progress, increasing both the likelihood and potential size of settlements.
• Gross cash receipts of US$4.9 million comprised US$4.5 million for the full settlement of a case relating to one of the Company’s investments delivering an internal rate of return of approximately 54%. An additional US$384,000 in proceeds was received from the partial settlement of one case and approximately US$50,000 was received as a residual payment for a case that came to full settlement in 2009.
• The realised gain from settlement activity that occurred during the six month period ending 30 June 2011 was approximately US$1.2 million. Actual cash gains from these same settlements totalled approximately US$2.3 million with approximately US$1.1 million previously recognised as unrealised income.

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