Listed third-party litigation funder Juridica is to pay $16m (£10.6m) in dividends early next year after securing gross cash proceeds of $17.5m from one of its investments.
In a statement released yesterday to the London Stock Exchange, the AIM-listed company said the proceeds “represent a realised gain on the company’s investment and not a return of capital. The return generated is in line with the company’s expectations, as previously reflected in the unrealised profits of the company”.
Payment is due at the end of the year, and the dividend of 10p per share will be payable on 15 January 2014 to shareholders registered at 13 December 2013.
The statement said: “This latest successful investment return for Juridica continues the company’s strong record of investment selection and brings the lifetime gross proceeds achieved by the company to $105m. After payment of the dividend… Juridica will have returned $64m (or approximately £42m) to shareholders in the form of $54m in dividends and $10m as a result of the September 2010 share buy-back scheme. Juridica has so far raised £115m ($210m) of capital in two tranches.”
Lord Brennan QC, Juridica’s chairman, said: “We are pleased that the portfolio continues to mature and deliver cash proceeds. The board anticipates making dividend payments to shareholders over the next 12 months if the portfolio develops as expected; and will continue to pursue the company’s objectives of dividend income and NAV [net asset value] growth.”