Full Year Trading Update

Manolete, the UK's leading insolvency claims financing company, today announces a trading update for the year ended 31 March 2026 ("FY26"). All figures in this announcement remain subject to audit.

Highlights

• Strong H2 trading performance
• FY26 Realised Revenue of c.£28.0m (FY25: £29.5m) in line with expectations
• Strong gross cash receipts of £26.6m (FY25: £25.6m)
• Net Debt of £11.5m (FY25: £11.1m) and free cash outflow of £0.2m (FY25: inflow of £0.5m)
• Forward book1 increased significantly in value to £67m (FY25: £49m) which provides confidence for increased revenue and profits in FY27

FY26 trading performance

The Company is pleased to announce that Realised Revenue for the full year is expected to be in line with expectations2 at c.£28.0m (FY25: £29.5m). This reflects an increase in the number of higher value, higher margin case completions during the second half, as forecast.

Gross cash receipts were strong at £26.6m and represent a £1.0m increase versus the prior year. Net debt at 31 March 2026 increased to £11.5m (FY25: 11.1m) and there was a free cash outflow of £0.2m in the period (FY25: inflow of £0.5m).

The stronger trading performance in the second half enabled continued investment in new cases and helped offset one-off adjusting items3 and the non-payment by a small number of large debtors as noted in the Company's statement of 16 September 2025. Two of these payments continue to be delayed and the Company's net exposure to these debtors is approximately £4.7m. The Board remains confident that the full amount will be received in due course. However, the Company has not yet concluded its bad debt review in conjunction with its auditors and if there is no change in circumstances before the conclusion of the audit, the Company will consider some provision against these debtors, which is likely to be in the region of £1.5m-£2.0m. The Company's expectation of Adjusted Realised Profit Before Tax (PBT)3 is £1.9m (FY25: £0.6m) before any adjustment for these debtors.

Good progress on strategic initiatives

During the year, the Company made good progress in further strengthening its operations to provide a platform for continued growth whilst maintaining focus on its highly efficient system of working.

The Company made three new hires into the legal team to drive continued growth in the number of new case referrals and implemented new business development initiatives to support the Company's existing nationwide referral network. This has led to £32m of new cases being signed in FY26 (FY25: £26m), representing a 23% increase year-on-year, and this is expected to increase further during FY27 as the enlarged team continues to drive new case signings at higher levels of volume and value.

In relation to the Company's loan facility, HSBC has waived the requirement for former CEO Steven Cooklin to maintain a minimum shareholding in the Company.

Refreshed leadership team and Board

During the year, the Company refreshed its leadership team, with Manolete's Managing Director Mena Halton appointed as Chief Executive Officer in August 2025 and highly experienced public markets CFO Will Sawyer appointed as Chief Financial Officer in December 2025.

The Company also welcomed leading barrister Marcia Shekerdemian KC to the Board as a Non-Executive Director in March 2026. She replaced Dr. Stephen Baister, who stepped down from the Board but continues to provide consultancy to the Company.

Outlook

The forward book at 31 March 2026 was £67m and has grown by £18m or 37% year-on-year. This has been driven by the investment in the legal team and business development initiatives which has resulted in higher value cases being signed. Large cases with a forecast revenue value over £0.5m comprise £32m of the forward book, up from £21m at prior year end.

Given the growth in the forward book and the backdrop of an improving insolvency market, the Board are confident of increasing Realised Revenue and Realised PBT in FY27.

Commenting, Mena Halton, Chief Executive Officer said:

"We performed well in the second half, with an increase in the number of higher value case completions driving improved trading performance, as we forecast at the half year. At the same time, we continued to strengthen our team and new business development function to support our future growth. Our forward book has increased significantly in value and we are confident of continuing to build on our market leadership position as UK insolvencies persist at elevated levels."

• The value of the forward book represents the aggregate forecast revenue on live cases excluding cartel cases.
• Company compiled consensus prior to the release of this announcement for the year ended 31 March 2026: Realised Revenue £28.3m and Realised Profit Before Tax £1.5m.
• Adjusted Realised Profit Before Tax is defined as Realised Profit Before Tax before Adjusting Items comprising reorganisation and restructuring costs and share based payment charges totalling £1.2m.