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Final results for the year ended 31 December 2011

STRONG RETURNS IN 2011; DIVIDEND OF 7.0 PENCE PER SHARE; PORTFOLIO MATURING

Juridica (AIM: JIL), a leading provider of capital to the law market, announces its audited financial results for the year ended 31 December 2011.

Financial highlights

  • Total comprehensive income up 520% to US$37.8 million (2010: US$9.0 million loss)
  • Gross cash proceeds up 159% to US$17.1 million (2010: US$6.6 million)
  • Total cash profit up 578% to US$12.9 million (2010: US$1.9 million)
  • Net Asset Value per share up 20.9% to US$2.25 / £1.42* (2010: US$1.86 / £1.17*)
  • Fully diluted earnings per share of 31.08c / 19.63p* (2010: loss of 7.0c / 4.42p*)
  • Dividend of 7p per share paid to shareholders on 10 February 2012

* Financial highlights exchange rate is £1.00 = US$1.5835 as of 17 April 2012

Operating highlights

  • The Company committed US$4.3 million in one commercial case in 2011 that has already completed trial. The judge’s ruling is expected at any time. The case involves numerous claims including breach of fiduciary duty, misappropriation of trade secrets and interference with business opportunity
  • The Company also made an investment of US$6.5 million in a large, multi-party pre-litigation settlement opportunity in the commercial sector. The Manager believes this case has the potential to deliver substantial returns to the fund before the end of 2013
  • Three patent cases received favourable rulings at their Markman hearings (where, pre-trial, the construction of patents is defined and determined)

Commenting on the results, Lord Daniel Brennan QC, Chairman of Juridica, said: “These are positive results and we look forward to a coming year of significant performance for our fund.”

Richard Fields, Chairman and Chief Executive of Juridica Capital Management Limited, added: “Juridica has delivered a strong financial performance for 2011. And, as the average age of cases in the maturing portfolio is now 4.5 years, the likelihood of further recoveries in the near-term has increased. We have distributed profits to shareholders in line with the Company’s dividend policy and these results underpin our belief in the quality of the Company’s investment portfolio, which we expect will continue to deliver excellent returns to shareholders.”

Upcoming events

  • Three antitrust cases comprising part of the security for the loan facility made to Fields Sullivan PLLC may complete or reach an advanced stage before the end of 2012. These cases have significant damages claimed by their plaintiffs, which if awarded by a jury, will be automatically trebled by the court. The Manager expects that if any of these cases are settled prior to completion, or a favourable jury verdict is rendered and judgment is entered by the trial court, such a result may have a significant positive impact on the Company's net asset value
  • Five cases related to the Company’s patent portfolio have their trials scheduled within the next 12 months. Two of these cases have already generated several settlements from the defendant group with more expected
  • Six trials (including the five patent cases) and one Markman hearing are expected over the coming 14 months
  • Net cash profits from the fund will be distributed as dividends

Proceeds received since the Fund’s inception

  • Gross cash proceeds since inception total US$48.4 million
  • Six investments have come to completion with settlements in the underlying cases delivering a total of US$32.3 million in gross proceeds, representing a blended internal rate of return of approximately 78% (as calculated from date of investment to date of proceed return)
  • Seven cases, which are multi-defendant in nature, had partial settlements or expense recovery, providing for gross proceeds of approximately US$16.1 million
  • US$1.5 million was repaid to the Company from the Fields Sullivan PLLC facility in 2009 as a key judicial decision resulted in the return of an insurance reserve in a UK investment

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